HC Deb 24 July 1956 vol 557 cc192-3
23. Mr. Fort

asked the President of the Board of Trade if he will protest to the United States Administration against its granting export subsides on cotton textiles which constitute unfair competition with British exports of the same goods.

Mr. Low

We have told the United States Government on a number of occasions of the dangers and difficulties liable to be created by their raw cotton price policy. The United States Government have assured us that they do not intend any unfair advantage for their exporters, but we have specifically reiterated our opposition to subsidies on the export of textiles and other manufactured goods.

Mr. Fort

Has my right hon. Friend taken up the proposed policy of the United States Government to subsidise exports of textiles by making a formal protest to G.A.T.T. in Geneva?

Mr. Low

I do not think that the time has yet come for what my hon. Friend has suggested, if it should ever come. The United States has not yet published the exact details of these export subsidy proposals. It is expected that it may do so before the end of this month, and I think we should look at the details first.

Mr. H. Wilson

Yes, but will the right hon. Gentleman say whether export subsidies which are not matched by corresponding subsidies for production in the home market are or are not an infringement of G.A.T.T., and if an infringement is shown here, will the right hon. Gentleman take action by raising this matter at Geneva, and demand either the withdrawal of these subsidies or compensation in some other part of Anglo-American trade relations?

Mr. Low

I hope that neither the right hon. Gentleman nor the House will think that we intend to be backward in this matter. We attach great importance to it. What G.A.T.T. provides for is that any new subsidy on exports which results in export prices becoming lower than domestic prices for comparable goods would be contrary to the revised Article 16.