HC Deb 23 July 1969 vol 787 cc1696-7
4. Sir R. Russell

asked the President of the Board of Trade what account he is taking of the existing system of Commonwealth preferences in his plans for implementing the scheme for a generalised system of preference for less developed countries approved by the United Nations Conference on Trade and Development conference in New Delhi.

Mr. Crosland

It is, in the Government's view, basic to the proposed generalised preference arrangements that they should provide new benefits in third markets to compensate Commonwealth developing countries for the extent to which they would be obliged to share with the developing countries their existing preferential arrangements in our market.

Sir R. Russell

Can the Minister give an idea of what the compensation will be in respect of imports to this country from the existing Commonwealth countries?

Mr. Crosland

No, Sir. We have not yet advanced sufficiently far in the direction of a generalised preference scheme to say what kind of compensation would be required. The Government have, however, consistently made it clear that a scheme would not be acceptable to us unless the Commonwealth developing countries received new advantages in third markets to compensate them for anything they might lose by sharing preferences in the British market.

Dr. John Dunwoody

Would not my right hon. Friend agree that the U.N.C.T.A.D. conference last year agreed on the establishment of a system of preferences which, among other things, would promote industrialisation in some of the less advanced countries? Will he, further, agree that the announcement that we are to switch from quotas to a tariff system for cotton imports takes us a step away from this objective?

Mr. Crosland

No, Sir, I do not think that it will do so. I agree with why my hon. Friend has described as being the purpose of the U.N.C.T.A.D. scheme but, as I pointed out in the House yesterday, I believe that a tariff solution on textiles could well do less harm to the developing countries than a continuation of the quota system. I do not, therefore, regard yesterday's decision as being in any way a blow to the developing countries.