HC Deb 15 July 1974 vol 877 cc20-2
18. Mr. William Hamilton

asked the Secretary of State for Trade what plans he has for increasing trade with the Commonwealth.

Mr. Deakins

The British Overseas Trade Board is working for increased trade with our major trading partners, including the Commonwealth. I hope that my right hon. Friend's recent visit to Canada and his forthcoming visits to Australia and New Zealand will reinforce the board's efforts. Her Majesty's Government are also seeking improved access for Commonwealth exports as part of our renegotiation of the terms of British entry into the European Economic Community.

Mr. Hamilton

Does my hon. Friend agree that for over 25 years under successive Governments two-way trade with the Commonwealth has decreased by more than half? If he and his right hon. Friends are successful in bringing us out of the Common Market, does he believe that this will have an adverse or favourable effect on Commonwealth trade? More importantly, does he think that we shall get cheaper food as a consequence of coming out of the Market?

Mr. Deakins

Commonwealth trade has declined since the war in terms of the percentage of total trade although it has gone up in value. One of the reasons why it has declined is that British firms have always, until recently, regarded the Commonwealth as a fairly easy market so that their competitors have gone ahead. Everyone would now agree that trading with any part of the world is not at all easy, as we are finding out in our present period of membership of the EEC. We do not anticipate any adverse effects on the Commonwealth in the event of our withdrawing from the Common Market. I would remind my hon. Friend that withdrawal is not the policy of the Government. [Interruption.] To answer my hon. Friend's last question, the issue is not whether we can buy cheap food from outside the Common Market. It is a question of whether we can buy cheaper food from outside the Common Market. We positively believe that we can and that we shall go on being able to do so.

Mr. Body

Would not our food be very much cheaper now if we were to take off the import levies or the taxes we impose upon so many foodstuffs, including the exorbitant amount of £800 per ton on New Zealand cheese?

Mr. Deakins

These matters are being dealt with as part of our detailed negotiating brief in the renegotiations. I know that the hon. Gentleman will not want me to go into details at this stage.

Mr. Ronald Atkins

Does my hon. Friend agree that the great difference between trade with the Commonwealth and trade with the Common Market at present is that Commonwealth trade has given us a favourable balance of trade while Common Market trade has given us an unfavourable balance? Would he further agree that the increasing proportion of our trade with the Common Market is reflected in the enormous deficit we now have on our balance of trade?

Mr. Deakins

I must correct my hon. Friend on the figures. Our true trading deficit with the Commonwealth is currently running at an annual rate of about £800 million. [Interruption.] I am talking about current figures. That compares with the current deficit with the EEC which is running at an annual rate of £2,000 million.

Mr. Eldon Griffiths

The hon. Gentleman has made an important statement in saying on behalf of the Government that the Government do not seek cheap food outside the Common Market but rather that they seek cheaper food. Will he tell the House where in the world, without taking food from those who cannot afford to send it at all, he believes we can obtain cheaper food today?

Mr. Deakins

I can think of several commodities straight away—butter, cheese, beef and New Zealand lamb. If there is no cheaper food available outside the Common Market—assuming for a moment that the hon. Gentleman is right—why is it that the Common Market has to impose import duties and levies to make sure that cheaper food cannot get in?