§ 4. Mr. Dykesasked the Secretary of State for Trade what study has been made by his Department in recent months concerning patterns of trade in exports between the United Kingdom and other EEC countries.
§ Mr. MeacherResults of a study of the general pattern of trade were published in the article "Trends in Trade with Western Europe" in the annual report of the British Overseas Trade Board for 1977. Reports on trade with individual EEC countries were circulated at the board's Wembley conference in November.
§ Mr. DykesIs it not remarkable that since 1975, on a balance of payments basis, the trade deficit has fallen from £2.4 billion to £1.29 billion, although there has been a rise in the ratio of United Kingdom trade with other EEC countries? Is the real problem no longer the old deficit, particularly with EEC countries, but the deficit with countries in the rest of the world and particularly countries which do not practise full and fair trade, such as Japan?
§ Mr. MeacherThe hon. Gentleman is perfectly right that there is a major trading problem with Japan. But he skates over the fact that there has been a very substantial deterioration in our trading position with the EEC countries. In the four years from 1969 to 1972 the United Kingdom trade deficit with Western Europe was £240 million a year. In the four years after we joined the EEC the United Kingdom trade deficit with Western Europe was £2,380 million a year, of which £1,950 million was attributable to the poorer trade balance with the EEC. This is still a major problem.
§ Mr. KelleyIs my hon. Friend happy with the situation in the coal industry? Is he aware that considerably greater amounts of coal are being imported into Europe than are being exported? Is this not contrary to the terms we expected when we entered the Common Market in 1972?
§ Mr. MeacherI am not sure whether my hon. Friend is suggesting that the 9 trade in coal is in some sense discriminatory. As far as I know, we have not received representations suggesting that imports of coal from outside the EEC discriminate against internal trading in coal within the EEC.
§ Mr. MartenIs not the trend that in recent months exports to the EEC have been declining while imports have been increasing? Is not the import problem partly due to the need to import high-cost food from the Common Market? Does not the hon. Gentleman agree that the sooner we can bail out the CAP the sooner my hon. Friend can make a better case for our membership of the EEC—if there is any case—because we shall then be able to buy our food on world markets?
§ Mr. MeacherThe problem of the displacement of food supplies following our accession to the EEC is well known. It is a major problem. As for the recent trend in trade, the export-import ratio has improved over the past couple of years to about the position that it was in 1972. In the fourth quarter of last year it started to deteriorate again slightly.