§ 10. Mr. Dubsasked the Secretary of State for Trade what was the value of imports of motor cars from Japan in 1979, and to the latest available date in 1980; and what were the corresponding figures for British motor car exports to Japan.
| 1979 | January to October 1980 | |
| Imports from Japan (cif) | £357,500,000 | £296,610,000 |
| Exports to Japan (fob) | £11,906,000 | £13,952,000 |
§ Mr. DubsGiven that those figures are clearly unfair to the British motor industry, what positive plans does the right hon. Gentleman have to correct the imbalance between our exports of motor cars to Japan and Japanese exports of motors cars to us?
§ Mr. NottHowever hard I looked at the motor car position and our trade with Japan, I could hardly describe it as being unfair to us. We have an industry-to-industry agreement with the Japanese under which they have undertaken to prudently export their vehicles here. That is a restraint agreement offered by the Japanese Automobile Manufacturers Association — JAMA. There is nothing unfair to us about that; it is a favourable arrangement for us. It is not a favourable arrangement for those who want to buy Japanese motor cars, but it is a favourable arrangement for the British motor car industry.
§ Mr. EmeryIs not one of the problems of exporting motor cars to Japan that many British engines do not meet the Japanese exhaust emission requirements? What plans is the British motor industry making to produce engines that will meet those requirements, thus allowing its products to be marketed in Japan?
§ Mr. NottI know of no discrimination indulged in by the Japanese against the import of motor vehicles. It is basically a highly competitive and highly efficient internal market without any non-tariff barriers against our imports. Whether our motor manufacturers are trying to overcome the problem that my hon. Friend mentioned is 11 a matter for them. I should have to ask them whether they intend to go for Japan as an export market. I need to know that.
§ Mr. McNallyIs not the Secretary of State aware that only 35 per cent. of our exports to Japan cover our imports from Japan? The imbalance in trade and the trade ratio is out of all proportion to trade between two developed nations. The ratio will not be changed unless we have much more robust talks with the Japanese about opening up their markets to the developed countries.
§ Mr. NottI agree with the hon. Gentleman. Last week I attended the Council of Ministers meeting in Brussels, where this very issue was discussed. I believe that we have played a major role in bringing about a new Community initiative towards Japan. That will take place in the next month or two. I agree with the hon. Gentleman that the huge imbalance that now exists between us and Japan is not acceptable, but I must also tell him that in the last resort trade is multilateral. One cannot imagine that any artificial reduction in trade between us and Japan would not in some way reflect adversely on us in trade with other parts of the world.
§ Mr. Hal MillerWhile I hope that my hon. Friend will not be swamped in this tide of discussion, may I ask him to turn his mind to the question of non-tariff barriers? He says that he is not aware of any, but will he reflect on the wretched fitter from Lucas who had to fly out to Japan to file the name off a rear light? It is that sort of vehicle type approval that is proving such a barrier. Will my right hon. Friend look into those aspects, bearing in mind that the volume is of much more concern than the value?
§ Mr. NottI shall look into any allegations of non-tariff barriers to the export of our cars erected by Japan. I shall investigate the case that my hon. Friend mentioned, but, generally, what I said earlier would be broadly felt to be correct.
§ Mr. ParkIf the Secretary of State is not aware of discrimination against our exports of vehicles to Japan, it is about time his officials briefed him. Anyone in the trade will tell him about the discrimination against our exports. The right hon. Gentleman has just had one example from his hon. Friend the Member for Bromsgrove and Redditch (Mr. Miller). At the next meeting of the Council of Ministers will the right hon. Gentleman ask the French Minister about the attitude that the French take? They tell the Japanese "The matter is far too important to our country to allow you free rein." Is it not about time that this country took a similar attitude?
§ Mr. NottThe industry-to-industry understanding which has kept Japanese imports to the United Kingdom to between 10 per cent. to 11 per cent. in the past few years has been successful generally. This year imports might be rather higher. I have made strong representations to my opposite number in Japan. It is serious if the Japanese go above the industry-to-industry understanding.
I discussed the question with my French opposite number in Brussels last week. The heart of the problem is that British people seem to like buying Japanese cars whereas the French do not. The French do not have the same propensity to buy Japanese cars. I cannot change that easily.