HC Deb 24 July 1978 vol 954 cc1140-1
17. Mr. Hal Miller

asked the Secretary of State for Trade whether he has had discussions with his EEC colleagues on imports of motor vehicles into the EEC from third countries.

Mr. Dell

This subject has been discussed between the member Governments of the EEC on a number of recent occasions.

Mr. Miller

Is the Secretary of State aware that the European car market is now a single and undivided market and that it is therefore very necessary to discuss with his colleagues the question of the plans of the Japanese motor industry to increase production by 4 million cars during the next four-year period?

Mr. Dell

As the hon. Gentleman knows, we have an arrangement with the Japanese authorities in respect of this year, and there will be further discussions later this year in respect of 1979. This is a matter which is discussed within the EEC, and more generally the balance of trade between the European Community and Japan is discussed. The hon. Gentleman knows that at the recent summit meeting Mr. Fukuda made certain pledges concerning Japan's exports in the fiscal year 1978.

Mr. Lee

However many discussions there may be, is it not action that is required? Is the Minister prepared to take unilateral action if, as we expect, the Commission continues to procrastinate and thereby prevent effective action?

Mr. Dell

This is an area in which there have been discussions between the industry of this country and the industry of Japan, which were followed up in February and March by discussions between the representatives of the British Government and the Japanese authorities, resulting in a letter, a copy of which was published in Hansard. This is the action that has been taken, and this is having the effect of restraining Japanese exports of cars to the United Kingdom.