HC Deb 16 February 1981 vol 999 cc3-4
3. Mr. Chapman

asked the Secretary of State for Trade what is the current state of trade between the United Kingdom and the non-OPEC industrialising countries; and if he is satisfied with the trend in recent years.

8. Mr. Kenneth Carlisle

asked the Secretary of State for Trade what was the United Kingdom's balance of trade with the newly industrialising countries in 1980.

The Secretary of State for Trade (Mr. John Biffen)

The balance of trade with the new industrialising countries in 1980 resulted in a crude surplus of £396 million. The crude surplus with non-OPEC members within this group was £110 million. In both cases, there was a considerable surplus in trade in manufactured goods, and a deficit in other goods, primarily food and raw materials.

Mr. Chapman

First, may I welcome my right hon. Friend to his new post? I welcome the figures that he has announced, but do they not again underline the fact that, if we felt minded to try to restrict imports of certain goods from these countries, the retaliatory measures that could be taken against our exports would be more damaging to the United Kingdom than any net benefit from restricting imports?

Mr. Biffen

I thank my hon. Friend for his kind initial remarks. It is true that this is a substantial and valued market for the United Kingdom. These countries account for about 11 per cent. of our exports and 10 per cent. of our imports. It is advantageous that the trade should proceed by mutually satisfactory arrangements.

Mr. Carlisle

We welcome the growth of our trade with NICs and the healthy balance of trade that we enjoy with them. Does my right hon. Friend agree that we should do everything possible to encourage this trade not only because it helps to create jobs in Britain but because, by providing a market for goods in Britain, it therefore helps to put into effect the best overseas aid programme possible?

Mr. Biffen

Yes. I very much accept that argument.

Mr. Edwin Wainwright

Does this mean that the right hon. Gentleman is happy about the present balance of exports and imports? Will he compare the present position with what was happening years ago? Does he not realise, in spite of his complacency, that we are importing far too many goods while being unable to sell similar goods manufactured in Britain?

Mr. Biffen

There is a sensitive relationship between what we buy from these countries and what we sell to them. I suspect that the hon. Gentleman has manufactured goods in mind. In that sector we have a substantial surplus. The balance is made up by food and raw materials that we import from them. Surely this is trade that commends itself to all parts of the House.

Mr. Marlow

Perhaps my right hon. Friend will tell us what effect on trade with the newly industrialised or industrialising countries will follow from restricting our source of agricultural supplies, such as that which has caused the closure of the Tate and Lyle sugar refinery in Liverpool?

Mr. Biffen

I require notice of such a detailed and fast googly.