HC Deb 12 July 1976 vol 915 cc24-6
22. Mr. Madden

asked the Secretary of State for Trade what progress is being made with measures to assist the British textile industry, particularly the clothing sector, to combat unfair competition from Eastern Europe and low-cost overseas manufacturers.

Mr. Meacher

Under the GATT Multi-fibre Arrangement, 11 bilateral restraint agreements have now been negotiated between the EEC and low-cost supplying countries, and further agreements are expected to follow shortly. In addition, most imports of textiles and clothing from Eastern Europe are restricted by quota, and these restrictions were extended in March this year to cover men's and boys' woollen suits.

Mr. Madden

Does my hon. Friend agree that these measures are not adequate to deal with the problems confronting the British industry? Is he aware that there is a growing suspicion among those in the textile industry that many of our competitors are not observing the rules, whereas we seem to observe all the rules? Does he agree that this is a disturbing context in which to face the relinquishing of our independence and to pass those powers to the Common Market?

Mr. Meacher

There has already bean comment on my hon. Friend's last point, and an answer from my right hon. Friend. I do not intend to extend that further. I hope that my hon. Friend will accept that, even if he believes that further measures are needed, the totality of protective measures now in existence will give more protection for the industry than it has ever had before when there is as economic upturn and when the bilateral restraint agreements begin to bite, as they will. As for the Clothing Manufacturers' Federation, we have sought further evidence regarding the anti-dumping application. This is in addition to the voluntary restraint measures that exist for tonnage. We expect to reach a decision shortly as a a result of the latest information that we received on 21st June.

Mr. Fletcher-Cooke

Does the hon. Gentleman appreciate that in the new agreements that he has told us about—namely, the many agreements with low-cost countries—the quotas are always extended from the previous base year, albeit not as much as the overseas countries would like? Will he think about limiting the extensions in future, even to the extent of a nil extension? Does he realise that it is depressing for domestic manufacturers to realise that every year the quotas are gradually extended, even though that seems to be the fashion in international trade?

Mr. Meacher

The hon. and learned Gentleman is correct in saying that one of the provisions of the Multi-Fibre Arrangement is that any restraints are imposed on existing levels of trade, and that there is provision for the growth factor, but he will know that the arrangement expires at the end of next year. There will be a review within GATT in the autumn of this year. The hon. and learned Gentleman's proposal for a recession clause is one of the matters to which we are now giving careful consideration.

Mr. Higgins

Is the hon. Gentleman aware that the Secretary of State said earlier that his Department would not insist that 51 per cent. of an industry had to be shown to be affected by imports for it to make out an anti-dumping claim? None the less, the Clothing Manufacturers' Federation is firmly under the impression that the Department is imposing such a requirement. May we have that matter cleared up? Secondly, is it not the case that Russian industry can dump on this market and re-equip with machinery exported from this country on better credit terms than those available for our own textile industry?

Mr. Meacher

The hon. Gentleman has drawn attention to the distinction between the Multi-Fibre Arrangement and the anti-dumping applications. The Question is specifically about the Multi-Fibre Arrangement. If the hon. Gentleman wishes to pursue the matter he has raised, perhaps he will table a specific Question. He has referred to assistance to Russian industry, in that it can obtain machinery under better credit cover than now exists for British industry. I do not think that that is a fair assumption to make, bearing in mind the full level of ECGD credit insurance cover that is given to British industry and to Russian competitors.

Mr. Higgins

On a point of order, Mr. Speaker. I should point out that the Question does not relate to the Multi-Fibre Arrangement.