HC Deb 06 February 1978 vol 943 cc1012-3
18. Mr. Sims

asked the Secretary of State for Trade what further representations he proposes to make to the Japanese Government concerning the level of import duties on United Kingdom products.

23. Mr. Giles Shaw

asked the Secretary of State for Trade what further representations he proposes to make to the Japanese Government concerning the level of import duties on United Kingdom products.

Mr. Dell

I take every opportunity of making representations to the Japanese Government about barriers to imports, including import duties. Negotiations on these matters are now taking place in the context of the multilateral trade negotiations.

Mr. Sims

Is the Secretary of State aware that the modest reduction in duty announced by the Japanese Government just before Christmas has been widely welcomed by all those who want to increase trade with Japan? However, there has been considerable disappointment about the fact that the reduction on biscuits and confectionery did not materialise. Does he agree that duty rates of 35 per cent. and 40 per cent. are not conducive to increasing trade in these commodities? Will he make the strongest possible representations to the Japanese Government on this point?

Mr. Dell

I agree entirely. I hope that the modest reduction in the duty on whisky will help, and I agree that it was disappointing that nothing was done about confectionery and biscuits. We shall press this matter hard in the multilateral trade negotiations.

Mr. Shaw

Will the Secretary of State recognise that, in view of the enormous balance of trade surplus of the Japanese, the reductions offered so far are minimal? He should be able to persuade the Japanese Government to make a meaningful reduction, particularly on the heavy duty lines such as biscuits and confectionery.

Mr. Dell

I agree entirely. The position created by the Japanese surplus is very serious. I shall press this matter upon the Japanese Government and Mr. Ushiba in discussions in this country, Europe and the United States, and I hope that they will take the necessary action to rectify the position.

Mr. Ronald Atkins

Is it not true that import duties and other trade restrictions have been used for years by Japan and other countries to protect and develop home industries? Is it not time that we adopted similar measures?

Mr. Dell

As a matter of fact—this is part of the problem—the difficulty in Japan is not just a matter of import duties or formal tariff barriers or non-tariff harriers. The difficulty is the attitude towards purchasing, which has had the effect of helping to build up Japanese industry and its export capacity. It is no use imagining that protective policies necessarily create viable industries. Unfortunately, there are too many examples of the contrary in this country—industries that have had protection but have not benefited.

Mr. Dalyell

In my right hon. Friend's discussions with Mr. Ushiba, was anything said about quartz crystals?

Mr. Dell

I did not mention that industry, nor did Mr. Ushiba, in my discussions with him.