HC Deb 09 February 1976 vol 905 cc15-6
11. Mr. Madden

asked the Secretary of State for Trade what progress has been made in negotiations with Eastern European countries on the restriction of woollen imports into the United Kingdom.

Mr. Deakins

Discussions are continuing with the East European countries concerned about the level of their exports of woollen suits to this country.

Mr. Madden

Is my hon. Friend prepared to accept that the £4.80 suits from East Germany are the latest examples of the flood of cheap woollen imports from Eastern Europe? When will the talking stop and the action start? When will the Government introduce tougher import regulations to stop this country being the softest import market in the world?

Mr. Deakins

I remind the House that a wide range of woollen textiles and garments is already subject to quantitative restrictions when imported from Eastern Europe. We have invited the Governments of five Eastern European countries voluntarily to restrain their sending to us of woollen suits in 1976. This should close the gap which now exists.

Mr. Higgins

Is it not true that Communist countries can obtain textile machinery exported from this country on more favourable terms than those available to the British textile industry?

Mr. Deakins

It is true that textile industries anywhere in the world can obtain textile machinery from this country on credit terms that are internationally recognised and that we have to accept if our prosperous textile machinery indus- try is to make its contribution, which is already very good, to British exports.

Mr. Richard Wainwright

Is the hon. Gentleman aware that, in view of the wool textile industry's leading position in the country's export league, some of us from the West Riding strongly support the Government's efforts to make a British contribution to world freedom of trade, but that the manifest success of other countries in dumping in this country, with comparative ease, detracts from the Government's main policy?

Mr. Deakins

I was not aware that the Liberal Party was reverting to its former free trade policy, but I am grateful to the hon. Gentleman for that information. We have strong anti-dumping legislation, in line with the GATT code—a code that is universally adopted by OECD countries. I assure the hon. Gentleman—we have recently assured British industry—that any accusations of dumping are vigorously pursued.

Mr. Costain

Is it not ironical that the Prime Minister goes to Moscow to give the Russians special credit terms featuring low interest rates when such terms are not available to our own manufacturers, making it impossible for them to compete?

Mr. Deakins

I must point out to the House that this is one of the anomalies of international trade. If we are to increase British exports we must give our exporters the same credit facilities as are available to international competitors. The CBI would be the first to protest if we adopted the policy put forward by the hon. Gentleman.