HC Deb 14 April 1959 vol 603 cc793-4
20. Mr. Bellenger

asked the President of the Board of Trade whether he will make a further statement in respect of the inter-Governmental negotiations between Great Britain and France concerning trade relations.

Sir D. Eccles

As announced on 2nd April, agreement in principle has been reached on quotas with France for 1959.

Mr Bellenger

Are the negotiations purely bilateral negotiations between this country and France, or do they arise out of the Common Market Agreement and the disagreement about the Free Trade Area? In the latter case, will these negotiations be continued with the non-Common Market Powers and, if so, will the Minister deal with the matter himself, or will his right hon. Friend the Paymaster-General do so?

Sir D. Eccles

The disagreement arises from the fact that on coming into force the Common Market discriminated against our goods. It has also discriminated against the goods of other members of O.E.E.C. who are not in the Common Market. We have kept them informed of what we have done, and they are now negotiating with the French. I hope that they will get the same treatment as we have got.

Mr. Bellenger

Is the House to take it that the negotiations were only with France and not with the Common Market Six, and that hopes of further negotiations with a view to widening the Free Trade Area, or coming to a Free Trade Area agreement of some sort, are now extinct?

Sir D. Eccles

The right hon. Gentleman will know that France had very stringent quotas, whereas her partners did not. Therefore, the negotiations had to be with France, because it was only in the French market—and, to a slight extent, in the Italian market—that that discrimination was going to take place.

Mr. Woodburn

Since it was the French, in the main, who frustrated the coming into being of the European Free Trade Area, does this development indicate in any way a softening of their attitude and a more agreeable approach to a Free Trade Area, or some such organisation?

Sir D. Eccles

It provides a transitional arrangement for this year, during which we can resume wider negotiations.