HC Deb 18 October 1976 vol 917 cc926-8
5. Mr. Ovenden

asked the Secretary of State for Trade if he will make a statement on the outcome of negotiations over duty-free import quotas with the United Kingdom's former EFTA partners.

22. Mr. Moate

asked the Secretary of State for Trade if he will make a statement on the outcome of negotiations over duty-free imports with the United Kingdom's former European Free Trade Area partners.

The Under-Secretary of State for Trade (Mr. Michael Meacher)

Discussions on the arrangements for the duty-free quotas have taken place with the main EFTA supplying countries. These have not led to any agreement on changes acceptable to both the EFTA countries and ourselves.

Mr. Ovenden

Is my hon. Friend aware that there is concern in many areas such as the one I represent, which is dependent upon the paper industry, that there will be a successful outcome to the negotiations? Does he accept that the overgenerous treatment that we have afforded to Scandinavian paper imports in the past has been a major factor in the decline of the British paper industry and the loss of 17,000 jobs? Will my hon. Friend renew his effort to secure an agreement that ties the imports from Scandinavia more closely to demand in the home market? Will he confirm that we shall go back and negotiate again with that objective in mind?

Mr. Meacher

I am well aware of the feeling that exists on this issue in the paper industry. In response to the third part of my hon. Friend's question, the proposal for a downward revision of quotas at times of recession has been our primary objective. However, it is necessary under the exchange of letters that the Conservative Government undertook shortly before we entered the EEC that any changes which are made have to be made with the agreement of both sides. I am not optimistic about whether it is possible to secure agreement on this issue in a way which is satisfactory also to the EFTA countries.

Mr. Moate

Will the hon. Gentleman clarify his earlier answer? Did he say that the negotiations have been concluded and that he has failed, or that he is still hopeful of a more successful outcome? Bearing in mind that United Kingdom imports of paper and board now account for nearly half the total consumption compared with about 28 per cent. 10 years ago, and that that has been caused substantially because we have allowed most imports to come in duty-free under the quota arrangement, the EEC being protected by a 10 per cent. tariff, will the hon. Gentleman take that point on board?

Mr. Meacher

I hope I made it clear that the review has been completed. We are now considering the results and we shall shortly be giving our conclusions to the EFTA countries. No final decision has been taken on our position. I am aware of the difference between the position for the United Kingdom industry and that for the rest of the EEC. As the hon. Gentleman well knows, the other side of the coin is that under the exchange of letters we retain the right for our industry to have free trade access to the Scandinavian countries. In the first eight months of this year the value of that market to our industry was £1.1 billion. That is a considerable quid pro quo. However, I am well aware of the need to provide for the paper industry all the protection that is consistent with that objective.