HC Deb 13 April 1981 vol 3 cc6-7
6. Mr. Hal Miller

asked the Secretary of State for Trade what progress is being made with the formulation of a European Economic Community trade policy with Japan.

Mr. Biffen

The Foreign Affairs Council, in November 1980 and February 1981, expressed the serious concern of member States at the growing imbalance of trade between Japan and the Community. It furthermore called upon Japan to moderate her exports to the Community and to make her market more open to imports. Japan is being pressed in discussions with the Commission to give practical effect to these proposals.

Mr. Miller

What effective measures have my right hon. Friend and his colleagues in mind to give effect to the declaration of policy that there should be effective moderation of Japanese exports and a clear commitment to a substantial and early increase of Japanese imports of EEC products?

Mr. Biffen

As my hon. Friend may know, the European Community has established a system of surveillance over cars, colour television sets and tubes, and machine tools. There is scope for possible extension of the list. That is the prelude. The negotiations now proceeding between the Commission and the Japanese have as their objective an influence upon trade.

Mr. Jay

What is the point of our excluding imports from Japan if they are simply replaced by imports from the Continent?

Mr. Biffen

I think that the matter that has caused acute concern in this country and a number of other countries has been the speed of Japanese penetration into export markets.

Mr. Kenneth Carlisle

Will my right hon. Friend point out to the Japanese as early as possible that the best way to solve their trading problems with Europe is to invest in a manufacturing base in Europe? In this respect, Britain has proved much the best place to date.

Mr. Biffen

I am sure that this point is never far from the minds of those who are seeking to persuade the Japanese that the Nissan plant should come here.

Mr. John Smith

Is the Secretary of State aware that the French Government have told the EEC that they intend to conduct bilateral negotiations about trade with Japan? Does he not think that it would be useful for the United Kingdom to follow this practice, as the French obviously consider it consistent with their obligations to the EEC?

Mr. Biffen

That is a point to be borne in mind. I am sure that the right hon. Gentleman will recollect that we have our own bilateral arrangements with the Japanese over motor cars. This matter is handled through the Society of Motor Manufacturers and Traders.