HC Deb 05 July 1955 vol 543 cc934-6
21. Mr. Holt

asked the President of the Board of Trade if he will make a statement on the marketing and pricing arrangements in connection with raw cotton imported into the United Kingdom, indicating in which countries there is no Government interference, and in which countries the quantity available, or the price, is interfered with; and the nature and extent of the Government interference.

Mr. Low

The Governments of all the principal countries supplying the United Kingdom with raw cotton impose regulations which directly or indirectly affect its export price. Several of the Governments concerned also restrict the acreage for cotton growing or the amount and types of cotton exports. With permission, I will circulate in the OFFICIAL REPORT a detailed statement of the information available about the present arrangements in each of the principal supplying countries.

Mr. Holt

Can the Minister say whether the Board of Trade is being active in making representations to those countries to cease these undesirable practices?

Mr. Low

We have, of course, no responsibility for the policies other Governments pursue. We can only intervene if they are contravening international obligations. As the hon. Member will know, this is a complicated problem and

RAW COTTON
Country Nature of marketing and price arrangements Whether export duties are imposed Whether exports are restricted Whether planting is restricted
Argentina … Export sales require the approval of the Argentine Trade Promotions Institute. The Government guarantee minimum prices to the cotton growers. No Yes-by global quotas fixed each season. No
Brazil … The Government fix the rate of exchange for the proceeds of cotton exports. No No No
Egypt … Cotton is bought and sold by the Government at pre-determined prices. Export prices in certain currencies including sterling, are affected by discounts resulting from regulations governing the disposal of foreign exchange earned by exporters. Yes Occasionally, particular qualities required by the domestic industry. Yes
India … For most varieties of cotton prices are free to fluctuate between minimum and maximum prices prescribed by the Government. Yes Yes. Exports limited by type and quantity. No
Mexico … Free market Yes No No
Nigeria … Sold on the open market by the Nigerian Produce Marketing Co. Ltd., London. Yes No No
Pakistan … Free market Yes No No
Peru … Free market Yes No No
Syria … Free market Yes No No
Tanganyika … Auctioned with reserve prices partly by the Tanganyika Lint and Seed Marketing Board and partly through the Uganda Lint Marketing Board. No No No
The Sudan … Mostly auctioned by the Gezira Board with reserve prices. Yes No No
Uganda … Auctioned by the Uganda Lint Marketing Board with reserve prices. Yes No No
U.S.A. … Free market with a Government price support scheme. No No Yes
U.S.S.R. … The amounts for export are determined and the prices are agreed by a Government organisation. — — —

it is greatly affected by the price charged for United States cotton.

Following is the information: