HC Deb 03 August 1961 vol 645 cc1623-5
11. Sir C. Osborne

asked the President of the Board of Trade since imports from Canada in the last three years were £308, £312, and £375 million, respectively, and exports were £188, £207, and £213 million, leaving an adverse balance of £387 million, what new steps he is taking to induce the Canadian Government to reduce tariffs and restrictions against British imports and to allow the United Kingdom to sell to Canada as much as it buys, since this could go a long way to solve the United Kingdom balance-of-payments problem; and if he will make a statement.

Mr. Maudling

My right hon. Friend the Minister of State, when recently in Canada, took the opportunity to stress the importance we attach to access to the Canadian market in view of the large market we provide for Canadian goods. We cannot, however, necessarily expect bilateral balance with a particular country, and Canada is a market in which our exports face no import restrictions, enjoy substantial preferences and have expanded by more than half over the last ten years.

Sir C. Osborne

Is my right hon. Friend aware that the Canadians are buying far more from the United States than they are selling and that they are paying for the excess imports from America by selling far more to us than they are buying from us? Is he aware that we are paying for that excess of imports of American goods into Canada and that in addition the Americans are selling to us £230 million more a year than they are buying from us? If only the North American trade were settled there would be no problem for this country. Have we not a right to press both Canada and the United States to encourage British exports into their markets?

Mr. Maudling

This triangular pattern of trade is traditional. If we try to balance our trade bilaterally with every country the only result will be a reduction in the total volume of trade. I do not think that we are entitled to press these countries to encourage our exports, but we are entitled to press them not to put any barriers in the way so that we can earn as much as we can in their markets.

Sir C. Osborne

There are barriers both in the United States and in Canada. If my right hon. Friend does not know about them let him ask any textile manufacturer. Surely he knows this. Are we not entitled to press them to help us or to stop their goods coming here?

Mr. Maudling

If my hon. Friend looks at the comparative barriers to trade in this country and in the case of most American goods, I think he will revise his views.

Mr. Jay

Have the Government recently approached the Canadian Government and suggested that they should be willing to reduce their tariffs on the import of manufactured goods from this country, provided that we continue our present tariff-free entry to Canadian goods here? Would not that meet the point?

Mr. Maudling

If that involved creating a wider margin of preference it would be ruled out by G.A.T.T. We have approached the Canadian Government recently on a number of individual points in which we think they ought to be able to help.