HC Deb 01 December 1980 vol 995 cc8-10
8. Mr. Knox

asked the Secretary of State for Trade what has been the deficit on visible trade with the European Economic Community so far in 1980; and how this compares with the deficit during the same period in 1979.

14. Mr. Marlow

asked the Secretary of State for Trade what, to the nearest £1,000 million has been the deficit in trade in manufactures with the European Economic Community for each of the years 1977, 1978 and 1979.

Mr. Nott

So far as trade in manufactures is concerned, in the years 1977, 1978 and 1979 respectively, we had crude deficits with the European Community of £0.6 billion, £1.6 billion and £2.7 billion. This year there has been a reduction in the deficit, which is running at an annual rate of approximately £2 billion.

So far as total trade is concerned, in the first 10 months of last year the United Kingdom had a crude deficit with the European Community of £2.8 billion. In the corresponding period of this year there has been a substantial reduction in the deficit of £0.3 billion.

Mr. Knox

Does my right hon. Friend agree that there has beer, a substantial improvement in our visible trade, accounted for mainly by a massive increase in exports to the EEC? Does he also agree that these figures show clearly that yet another prop in the anti-Marketeer's case is fast disappearing?

Mr. Nott

My hon. Friend is absolutely right. Whatever view one may take about the Community, our exports to the Community countries have greatly increased since we joined the EEC. This is a question of fact, not of opinion. Over the period since we joined in 1972, the average increase in the value of our exports to the Community has been around 30 per cent. a year.

Mr. Marlow

I am sure that my right hon. Friend will agree with me that the reduction in the deficit has been due purely to exports of oil and the onset of the recession. Does he also agree that we have a strong currency based on the oil in the, North Sea, not on the strength of our industry, and that this gives us very difficult problems in trading within Europe, and different problems in trading with the rest of the world from those faced by continental European countries? During the period of transition about which my right hon. Friend talked before, what action can he take to support our industry because of the massive imports that are coming in, which industry cannot sustain the exports against? What transitional measures will my right hon. Friend introduce to stop the dole queues lengthening too much in this country?

Mr. Nott

The premise upon which my hon. Friend bases some of his remarks is not correct. Our trade in manufactures within the Community, leaving out oil altogether, has improved in the first nine months of this year. Of course, this has a great deal to do with the domestic recession here and the shortfall in imports from the Community, but today we more or less have our import-export ratio with the Community in balance. That has something to do with oil, but it is no use taking oil out of all the statistics. One might just as well take wine out of the French statistics. We have oil in this country. We have a strong service sector, and when we look at the balance of our trade with the Community it is perfectly proper to take all these matters into account.

Mr. Deputy Speaker

I appeal for shorter supplementary questions, and perhaps for shorter answers, too.

Mr. Jay

As we joined the Community in 1973, not 1972, will the Secretary of State give the corresponding figures for 1970 and 1971?

Mr. Nott

I said "since 1972", which I think means since the end of 1972". I do not carry trade statistics around in my head, but I can provide the right hon. Gentleman with the figures that he asks for. All that I can say in general terms—briefly—is that there is no sign whatsoever that our trade with the Community since we joined it has varied very much in its success or otherwise compared with our trade with the rest of the developed world.

Mr. Dalyell

Is the supply of wine in France a finite resource?

Mr. Nott

So far as I am concerned, it is.