HC Deb 08 April 1974 vol 872 cc8-9
10. Mr. Carter

asked the Secretary of State for Trade if he is satisfied with current trading arrangements with Japan.

Mr. Deakins

British exports to Japan continue to expand rapidly, and I look forward to further balanced growth in our trade with this important market.

Mr. Carter

Does my hon. Friend agree that we stand absolutely no chance of balancing our trading books with Japan while the Japanese offer all kinds of obstacles to British trade with Japan? Will he tell the Japanese that unless those obstacles are removed quickly we shall retaliate against them and put obstacles in the way of Japanese goods coming to this country?

Mr. Deakins

There has been substantial liberalisation in Japan with regard to imports over the past few years. With a few exceptions—computers, leather and footwear—there are now no quantitative restrictions on products of interest to British exporters. The average level of tariffs in Japan is about equivalent to that of the common external tariff in Europe. With a few exceptions, even controls on foreign investment have been removed. We shall continue to press for the removal of the few remaining restrictions. I no longer regard them as a barrier to the expansion of two-way trade.

Mr. Peter Walker

Does the Minister agree, and will he inform his hon. Friend the Member for Birmingham, Northfield (Mr. Carter), that taking invisibles and visibles together we have a surplus in our trade with Japan? Does he agree that the enormous increase in our exports to Japan during the past year—I believe of at least 60 per cent.—was a tribute to the officials of the Department of Trade and Industry, whose lack of influence on trade the Secretary of State mentioned only a week ago?

Mr. Deakins

I confirm the right hon. Gentleman's point. We now enjoy a surplus on our total trade with Japan, by virtue of invisibles, and last year exports went up by a record 60 per cent. compared with a 41 per cent. increase in imports into this country. I and the Department regard Japan as one of the major growth markets of the world to which we are devoting a great deal of time and attention.