HC Deb 05 March 1973 vol 852 cc16-7
16. Mr. Cronin

asked the Secretary of State for Trade and Industry if he will make a statement on progress made with measures designed to bring about a closer balance in the trade between Great Britain and Japan.

Mr. Peter Walker

Our aim is to achieve a balanced expansion of two-way trade with Japan, mainly by securing a larger share of the rapidly growing Japanese import market. The efforts of the British Overseas Trade Board and the official services to this end will be powerfully reinforced by the recently announced decisions to set up a British Export Marketing Centre in Tokyo and to appoint a senior official as Special Adviser on Exports to Japan.

Mr. Cronin

Will the right hon. Gentleman, in consultation with his European counterparts, convey to the Japanese Government the view that it is becoming an increasingly intolerable situation that they should send 15 per cent. to 20 per cent. of their exports to Europe with wholly inadequate reciprocation on their part? Will he inform them that this is poisoning economic relations between Japan and the rest of the Western world? Will he bear in mind that there is now a substantial body of responsible opinion in Japan which appreciates this problem, so that the time is now ripe to make this point?

Mr. Walker

I very much agree with the hon. Gentleman. There is no doubt that it is very much in Japan's interest to see that there is very quickly an opportunity for British and European exporters generally to penetrate the Japanese market to a much greater extent than in the past.

Mr. Skeet

Would my right hon. Friend agree that there is a considerable accrual to the United Kingdom on the invisible account and that if we take the ordinary account and the invisible account together they represent a substantial balance in favour of the United Kingdom?

Mr. Walker

That is true, but there is no doubt that the Japanese market has been a very difficult one to penetrate for a number of reasons. It is vital that we have the co-operation of the Japanese Government to see that there is a sensible two-way flow of traffic.

Mr. Benn

Following the rearrangement of parities which will make it harder for Japan to penetrate the American market, has the right hon. Gentleman made arrangements to discuss with the Japanese Government the possible impact which this might have with the switching of Japanese exports to the United Kingdom, with adverse effects on our mutual trade?

Mr. Walker

It is vital to realise that the Japanese position is a worldwide position. It does not help worldwide trading relationships if it is simply switching resources from one major market to another. This is why it is important to see that we settle this on the basis of international negotiations that will take place later this year. In the meantime we have already made various arrangement with the Japanese, covering a number of sensitive industries.