HC Deb 14 February 1977 vol 926 cc26-7
25. Mr. Marten

asked the Secretary of State for Trade what was the trade deficit on a balance of payments basis with the EEC for 1976.

Mr. Meacher

Figures on a balance of payments basis are not yet available for 1976 as a whole. On an overseas trade statistics basis, our crude trade deficit with the rest of the EEC in 1976 was £2,222 million—£164 million less than in 1975.

Mr. Marten

Is the Minister aware that month after month we have been told that the figures will improve, but that if one takes the December figure the deficit is now running at a total of £2,600 million? When on earth shall we see the so-called benefits of membership of the EEC?

Mr. Meacher

The answer to the last point is, on a strictly economic basis, a matter of conjecture. However, the hon. Gentleman is not right to say that there has been no improvement, because in the first three quarters of 1976 the United Kingdom's deficit with the EEC was reduced by £300 million while our deficit with the rest of the world worsened by nearly £500 million.

Mr. Jay

Is my hon. Friend aware that the figures with the EEC show an improvement only if we include Denmark and Ireland, which were in a free trading relationship with us before we joined the EEC, but that if we take only the Six the situation is even worse?

Mr. Meacher

That is a different point. My right hon. Friend may well be correct in saying that, but if we examine our trading experience since we entered the EEC we see that it has deteriorated markedly, although in the case of our trading with Japan and the United States there has been a somewhat more pronounced deterioration compared with our trading with the EEC.