13. Mr. Capeasked the Secretary of State for Trade whether he will now take urgent action to end the discrimination against the purchase of British aircraft in the United Kingdom customs tariff.
§ Mr. Clinton DavisIt would be premature to seek any change in the Community's tariff arrangements for aircraft whilst the question of reciprocal duty-free trade in this sector is under consideration in the GATT multilateral trade negotiations.
§ Mr. CopeDoes the hon. Gentleman agree that it is wrong in principle that American equipment imported for an American aircraft should have its duty suspended permanently whereas the same equipment imported for use on a British aircraft should be charged duty? If it is wrong in principle, will the hon. Gentleman do all that he can both eventually to remove it in the way that he suggests and also meanwhile to agree to any application that there may be for the suspension of duty?
§ Mr. DavisWhat I have said is that it would be premature at the moment to engage in a dialogue of this kind. It is important to note that this is a very small part of the cost element of an aircraft.
§ Mr. NeubertCan the Minister confirm that British Aerospace's deal for the purchase of aircraft by the Romanians last week provides for increased imports of steel and textiles by way of barter? May we be sure that jobs in the aircraft manufacturing industry are not being secured at the expense of jobs in other industries, with reduced benefit to the balance of trade?
§ Mr. DavisI am sure that the Romanians would wish to have increased opportunities in this country. But the hon. Gentleman knows that this is a matter which he ought to put to the Department of Industry.