Japan

HC Deb 24 April 1978 vol 948 cc984-6

8. Mr. Michael Spicer

asked the Secretary of State for Trade if he will seek a meeting with the Japanese Minister for Trade.

13. Mr. Michael Stewart

asked the Secretary of State for Trade if he will make a statement about the progress of the negotiations between the EEC and Japan.

25. Mr. Viggers

asked the Secretary of State for Trade whether he is satisfied with the current trading arrangements between the United Kingdom and Japan.

Mr. Dell

I am not satisfied with the current level of our trade with Japan. Our views are well known to the Japanese and I have no immediate plans to seek a meeting with Japanese Ministers. The EEC Commission expressed our views to the Japanese Government last month and received a number of forecasts from the Japanese. There will be other meetings later to see whether these forecasts have been fulfilled.

Mr. Spicer

Do the Government have any plans to introduce measures specifically designed to discriminate against imports from Japan?

Mr. Dell

There are certain arrangements with Japanese exporters which limit certain types of Japanese exports to this country. We are now watching the development of that relationship in the light of the assurances given by the Japanese authorities. I have no further plans to announce.

Mr. Stewart

How effective does my right hon. Friend think the bargaining strength of the Community has been in making the Japanese aware of the need for more direct measures to increase their imports?

Mr. Dell

I think that the bargaining strength of the Community is valuable to us in all these trading relationships, notably in our relationship with Japan. The visit of the Commission to Japan recently has had an influence, and, together with the United States, I hope that we shall be able to persuade the Japanese that trade is not simply a matter of exporting.

Mr. Viggers

Does the Minister agree that as a trading nation it is unthinkable for us to contemplate protectionism, except on a specifically short-term basis? Does he also agree that, if our products are not competitive with those of Japan, regrettably the fault must lie here rather than in Japan?

Mr. Dell

I notice that the hon. Gentleman is prepared to contemplate protectionism provided that it is only on a short-term basis. I have noticed from time to time that short-term protectionism turns into long-term protectionism. As for the subject of competitiveness, I agree that if we are not competitive we cannot expect to trade successfully. The complaint about Japan is that in respect of imports—not just in respect of this country but other supplying countries—Japan seems to reject imports even if they are competitive.

Mr. MacFarquhar

When my right hon. Friend next meets his Japanese counterpart, will he ask him why it is possible, apparently with merely a nod and a wink from the French Government, for the Japanese to limit their car exports to France to less than 3 per cent., whereas it takes many meetings by him to try to secure any restraint from Japanese exporters to this country?

Mr. Heffer

The French use their muscle.

Mr. Dell

The answer is quite simple. It was only when the imports of Japanese cars had risen to the sorts of levels my hon. Friend the Under-Secretary has mentioned that we took action on the matter. If we had taken action before, we might have got a lower level of restraint.

Mr. Shersby

What support has the right hon. Gentleman been giving to the British motor component industry to get more British components into Japanese motor cars? Has he discussed this matter with Japanese Ministers in recent months?

Mr. Dell

There has been a considerable selling drive in that respect, and a mission from Japan has been visiting this country to investigate the possibilities. I hope that these sales increase, but unfortunately at present they are still at a very low level.

Mr. Litterick

Will my right hon. Friend take note that Mitsubishi car exports to Britain and Western Europe are Mitsubishi-Chrysler car exports, because those two conglomerates are combined? Will he also recognise that as Chrysler is subsidised by the British taxpayer the fact of this taking place is an insult to the British taxpayer and deserves the immediate attention of his Department?

Mr. Dell

I do not know that it was any part of the agreement made with Chrysler that Chrysler internationally should stop its activities in international trade.

Mr. Parkinson

Is the Secretary of State aware that last year the Germans exported 22,000 cars to Japan and the British motor industry managed fewer than 1,400? Will he turn his attention to finding ways of helping British companies to export to Japan, as other countries seem to be able to do, and not just inhibit the exports of efficient countries to this country?

Mr. Dell

We have done a great deal to encourage British companies to export to Japan. Indeed, in recent years British companies have made considerable efforts to export to Japan. I do not accept that the principal criticism in this matter now lies with British companies.

The Germans have certainly been a great deal more successful than we have in exporting motor cars to Japan, but if the hon. Gentleman compares German exports of motor cars to Japan with German exports of motor cars to motor car producing countries elsewhere in the world he will see that German exports to Japan are trivial.