§ 19. Mr. Knoxasked the Secretary of State for Trade what was the value of exports from the United Kingdom in the past three months.
§ Mr. BiffenUnited Kingdom exports of goods were valued at £11,838 million in the three months December to February.
§ Mr. KnoxDoes my right hon. Friend agree that the figure would have been much higher if the exchange rate for sterling had borne a closer relationship to comparative manufacturing costs? Has he drawn the attention of my right hon. and learned Friend the Chancellor of the Exchequer to the damage being done to British exports—and not just in the short term—by the high exchange rate of sterling?
§ Mr. BiffenIt is difficult to answer the first part of that question. It is entirely a matter of speculation. What is clear is that, notwithstanding the strong pound, we have had a very high level of exports.
§ Mr. StrawDoes the Secretary of State accept that the combination of high exchange rates and subsidised energy costs in the United States has made a bad situation for the British textile industry very much worse? Is he aware that 320 employees in my constituency have been thrown out of work because of the unfair competition from America? Does he now accept that the EEC's negotiations with the United States Administration in respect of the textile trade have now failed? If so, what action does he propose to take?
§ Mr. BiffenI think that the substantive answer to that question is contained in the answer to a later question—No. 26. However, we have considered this matter, and we have decided that it would be inappropriate to seek action under article XIX of the GATT, because we believe that the potential retaliation would be more harmful than any protection that that would confer.