Manufactured Goods (Exports)

HC Deb 24 April 1978 vol 948 cc989-91

12. Mr. Dykes

asked the Secretary of State for Trade if he is satisfied with the development in United Kingdom exports of manufactured goods to the rest of the EEC to date in the current year.

Mr. Meacher

No, Sir. I am not.

Mr. Dykes

In that context, does the Minister agree that once again we have a worrying trade deficit with most areas of the world excluding the underdeveloped countries and the oil producers? May I ask him to resist the temptation to single out the EEC for particular attention on this score? Is he aware that United Kingdom manufactured exports to other EEC countries have done especially well in the past six months? What other measures than the right rate for the currency does he plan to introduce to encourage United Kingdom exports to other EEC countries?

Mr. Meacher

There is a special problem over the export of manufactures to the EEC. Certainly our deficit in that respect grew last year compared with the year before. In the first quarter of this year it has grown markedly again. The crude trade deficit in manufactures in respect of our trade with the EEC went up in the first quarter of this year to £401 million compared with £168 million a year ago. There is a problem here. Our concern to assist the export of manufactures is shown by our introduction of the market entry guarantee scheme for small exporters and the joint and several liability scheme for the jumbo contract exporters.

Mr. Jay

Is my hon. Friend aware that, if oil and food are excluded, our deficit with the EEC Six last year rose further, to about £1,400 million, which is three or four limes our deficit with Japan?

Mr. Meacher

I cannot give my right hon. Friend the precise figures. Certainly what he has said sounds about right. The visible trade deficit with the EEC last year was just under £1,700 million compared with a visible surplus with the rest of the world of £66 million.

Mr. Marten

Does the Minister agree that the trade deficit, on an overseas trade statistics basis, in the first quarter of this year is running at an annual rate of about £2,500 million deficit?

Mr. Meacher

That is about right, although of course in terms of inflation the value in real terms is not as great because it has stayed at about that figure for some years and to that extent the export-import ratio has improved to a level today of about 86 per cent. That is slightly better than our export-import ratio, it is fair to say, as compared with North America and Japan, although not as good as with Western Europe.

Mr. John Ellis

Can my hon. Friend tell us what happened to all those people who said that the creation of an enlarged market would be a great thing for this country? Will he arrange for such people to be shot forthwith?

Mr. Meacher

Such people fail to say that we also became a more exposed market ourselves.

Mr. Nott

Which of two things is more important to the Minister now that we are in the Community? Does he enthusiastically welcome the fact that we have an open trading system in the Community and want to help our country improve its exports, or is he really more interested in proving to the House that he was right to vote against our entry to the Community?

Mr. Meacher

I am concerned—sometimes I wonder about the hon. Gentleman—with what is in our national interest. If the open market trading system is in the interests of Britain I support it. If it no longer is in our interests we shall have to consider alternatives.