HC Deb 13 March 1978 vol 946 cc17-20
12. Mr. Ronald Atkins

asked the Secretary of State for Trade what representations he has received complaining of artificial impediments to British exports to Japan.

Mr. Meacher

Representations have been received on a number of specific obstacles to exporting to Japan. We have made progress in modifying some of these such as vehicle emission standards and testing arrangements.

Mr. Atkins

Does my hon. Friend agree that Japan built up her industrial strength with the aid of protection and is using that strength to destroy British industries? In Ireland she is now preparing to flood the British market with commercial road vehicles. Will my right hon. Friend take action to protect many thousands of jobs in central Lancashire?

Mr. Meacher

My hon. Friend is right—and Conservative Members might take note of this—in saying that the Japanese built up their formidable export success on the basis of the absence of liberalisation and very high tariff protection in the 1950s and 1960s.

As regards the production of heavy commercial vehicles in Ireland, we have received an assurance from MITI that there will be no heavy commercial vehicles exported from Japan this year. We are aware of the operation in Ireland. There is no significant number of registrations of those vehicles in England, but we shall certainly be watching the situation very closely and reviewing it with the Japanese on a number of occasions this year.

Mr. Powell

Are the Government aware that the principal artificial impediments to British trade with Japan or any where else are, first, the rigging of the exchange rate of the yen and other currencies, and, secondly, the restrictions sought to be placed upon imports into this country?

Mr. Meacher

"The rigging of the exchange rate" is, as always from the right hon. Gentleman, a highly colourful phrase. Pressure has properly been put on the Japanese by the EEC, including ourselves, and by the Americans to ensure an exchange rate which is more realistic in terms of export levels. The export surplus of the Japanese reached $11 billion in 1977, and unless there were changes in the exchange rate the Japanese could not possibly succeed in their stated target of an export surplus of $6 billion in the current year.

As regards import restrictions, we have stated regularly that our aim is freedom for imports into this country, provided that is matched by freedom for our exports into the other country. In the case of Japan, that is not at present realised.

Mr. MacFarquhar

Does my hon. Friend agree that one of the reasons for the problem about Japanese car imports into this country is that we play by the rules and some of our Common Market partners do not? Therefore, in order to help to avoid a trade war, will my hon. Friend undertake to investigate whether there are impediments upon Japanese car exports to France and Italy which do not exist in this country and try to make them remove those impediments?

Mr. Meacher

Certainly, the level of Japanese car imports into Italy is extremely low, almost negligible, precisely because there was a pre-existing restraint prior to accession to GATT. I am aware that the level of Japanese car imports into France is about 3 per cent, compared with our figure of about 10 per cent, or 10½ per cent. Of course, it is much easier to hold the position that one has reached than it is to roll back, but we are prepared to take lessons from the French, if my hon. Friend can advise me.

Mr. William Shelton

In view of the mood of protectionism which seems to be sweeping across the Government Front Bench today, is the Under-Secretary aware that every limitation of imports is a limitation of consumer choice in this country? Does the hon. Gentleman agree with the recently expressed fears of the Prime Minister about protectionism in the world and the damage it would do to this country?

Mr. Litterick

How much choice do the unemployed have?

Mr. Meacher

There is also a lack of consumer choice if British industry is whittled down to the point where it is no longer viable. It is our concern to ensure that for all major products the British consumer will continue to have a good British choice.