European Economic Community (Hansard, 15 July 1974)

§ 1. Mr. Marten
asked the Secretary of State for Trade what is the United Kingdom's trade deficit with the EEC since 1st January 1973.

§ 30. Mr. Peter Morrison
asked the Secretary of State for Trade what is the percentage increase in British exports to the 2 European Community since 1st January 1973.

§ The Secretary of State for Trade and President of the Board of Trade (Mr. Peter Shore)
The crude trade deficit—that is, the difference between exports fob and imports cif—was running at an annual rate of £2,000 million in the first half of 1974 following a crude deficit of £1,167 million in 1973. Over this 18-month period exports were, on average, 51 per cent. higher than in 1972.

§ Mr. Marten
Does the Secretary of State recall paragraph 45 of the 1971 White Paper in which the then Government said quite clearly that they were confident that the effect on our balance of trade of entry into the Common Market would be positive and substantial? Has not that prediction turned out to be rather misleading? In the light of the distressing trends shown by the figures, apart from the increase in exports, is there not a danger in concentrating too much trade in one trading area, and would not it be better to go for a wider free trade area?

§ Mr. Shore
I agree that the judgments on the trading advantage contained in the paragraph of the White Paper quoted by the hon. Gentleman have been shown to be seriously out. As for concentrating on a single trading area, I have taken the view—I have spoken recently to this effect—that we need to remember that 3 we are world traders and that more than two-thirds of our trade continues to be with countries and continents outside the EEC.

§ Mr. Roy Hughes
Does my right hon. Friend agree that the reality of the figures is a little removed from the dreamy-eyed prophecies of some Common Market zealots before our entry? As we were taken into the Common Market without the full-hearted consent of the British people, ought not the British people to be asked before too long to give a final verdict on the matter?

§ Mr. Shore
There is no doubt that the trading reality of membership is wholly at variance with the confident prospects dangled before this House and the British people only two years ago. I have no doubt that this, among many other matters, will be taken aboard by the British people when they get the opportunity, as they will get it, to decide whether they wish to stay inside the EEC.

§ Sir B. Rhys Williams
Do not the figures suggest that the British people are anxious to buy continental goods, and is not the purpose of the Government's renegotiation to cut off supplies of goods from the EEC—or do they think that renegotiation somehow will expand our exports?

§ Mr. Shore
It indicates an interest by British consumers and British industry in European goods, but whether we can continue, and for how long, to run a trade deficit with the EEC of the order of £2,000 million is a question which will be and should be exercising us all.

Mr. Tom Ellis
What proportion is this of our total world deficit, and is it in line with our trade with the EEC in comparison with our total world trade?

§ Mr. Shore
I willingly give my hon. Friend that information. Although the EEC accounts for about one-third of our trade, it has accounted in the past 18 months for more than half our non-oil deficit, and this has happened in a period when commodity prices in the rest of the world have gone up to an extent that we have not known probably in our lifetime.