§ 19. Mr. Meacherasked the Secretary of State for Trade and Industry if he will make a statement concerning negotiations with the European Economic Community over trade liberalisation.
§ Mr. John DaviesDuring the accession negotiations last year, agreement was reached on transitional arrangements for our implementation of the Community regulations embodying the common liberalisation lists, consisting of items which are free of quantitative restrictions in all six member States. During this year we are consulted under the interim procedure about proposed additions to the lists.
§ Mr. MeacherIs the right hon. Gentleman aware that in 1971 France, under trade liberalisation agreements, imported not one ounce of cotton yarn from Asia while Britain under her quota arrangements imported £160 million worth of textiles from Asia? Once quotas are off in the EEC, does the Minister intend Britain to use the trade frustration tactics employed on the Continent? If not, how does he intend to prevent 20.000 jobs in the cotton yarn spinning industry from being wiped out?
§ Mr. DaviesI am very concerned about the industry in Lancashire. However, it is not helpful simply to make general charges about the administrative and, inferentially, underhand methods used by other countries to avoid imports. If hon. Members have specific examples which they can bring to my attention, I hope they will do so.
§ Mr. BiffenWill my right hon. Friend say whether the Government intend to use prospective membership of the Community as a means of encouraging trade liberalisation with the developing countries of UNCTAD?
§ Mr. DaviesThe generalised preference scheme in which we have been quite the forefront operator is one which we shall seek to pursue, though it will need some major adaptation so that there will 1242 be harmony between the acceding countries and the existing six members of the Community. There will have to be adaptation, but the purpose of that liberalisation and all that lies behind it will endure.