HC Deb 29 June 1981 vol 7 cc570-2
36. Sir Anthony Meyer

asked the Secretary of State for Trade if he will bring forward proposals during his Presidency of the European Economic Community Council of Trade Ministers in order to strengthen the bargaining position of the European Economic Community and its member States in negotiations with Japan.

Mrs. Sally Oppenheim

The Government have taken a prominent role in forming the European Community's recent policy initiative on trade relations with Japan. During the United Kingdom presidency, we intend to work, in close co-operation with the Commission, in all areas of Community policy.

Sir Anthony Meyer

Does my right hon. Friend accept that the ignominious failure of the last round of trade negotiations with Japan was due almost entirely to the fact that the Japanese knew perfectly well that they could get a much better bargain from each EEC member State separately? Would not it therefore be much better to revert to the original purposes of the Community and allow the Commission to conduct foreign trade negotiations on behalf of each member State, with the consequence that each member State would then get a much better bargain than it could possibly obtain for itself?

Mrs. Oppenheim

No, I cannot agree with my hon. Friend. The Community is united in its policy towards Japan. Her Majesty's Government will continue firmly to support the development of a strong Community policy during our Presidency. The Commission's report to the Foreign Affairs Council on 23 June of the Community-wide surveillance of Japanese exports of cars, colour televisions and tubes and certain machine tools has shown no sign of effective moderation by exporters yet. Recent discussions between Mr. Tanaka and the Minister and the Commission, however, are a step in the right direction. I assure my hon. Friend that the Community will continue to press the Japanese Government to take appropriate action.

Mr. Jay

What action are the Government taking to limit undue imports of cars from the Continent?

Mrs. Oppenheim

As the right hon. Gentleman will be aware, particular positive action has been taken by the Japanese Government in this area. Although it is clearly important for Japan to continue to remove its specific barriers, it is equally important that it should honour agreements with this country. As a major exporting nation, however, it is in our national interest to maintain open trading where it is fair and where competition is fair and unfetterred. A far greater proportion—about one-third—of our GDP is generated by exports than applies to most other major exporters. It therefore ill behoves us to put up tariff barriers or to impose import quotas.

Mr. Teddy Taylor

As the voluntary restraint agreement on cars between Britain and Japan by and large has worked extremely well, as confirmed by my hon. Friend the Under-Secretary will she resist at all costs any suggestion of a Euro-quota of imports, bearing in mind that on past form probably all the cars would end up in Britain?

Mrs. Oppenheim

That is an assumption which my hon. Friend makes. My hon. Friend the Minister for Trade will clearly wish to watch the development of any such situation very closely.

Mr. Spearing

On the assumption that it is Government policy to have world-wide competition in matters of trade, is it true that the Japanese tariffs against us are much higher in respect of similar commodities than EEC and British tariffs against Japan?

If so, will the Minister tell us on what items the Japanese ought to lower their tariffs and what success she would expect Britain to have if that were to happen?

Mrs. Oppenheim

The answers to those questions are "Yes" and "No". Yes, it is the policy of Her Majesty's Government to have open and fair competition. No, the Japanese do not impose higher tariff barriers except in the one case, which I think the hon. Gentleman has mentioned before—whisky—on which negotiations are now taking place.

Mr. Aitken

Is not the truth about Japanese exports of cars and other goods that Japanese workers and salesmen simply work harder than their British and Continental equivalents? If an example is required, can one imagine 21 Japanese Members of Parliament failing to turn up to ask questions that they had tabled?

Mrs. Oppenheim

I am not sure exactly who works harder, but somebody does, whether it be management or labour, because labour unit costs are lower in Japan and productivity is much higher than in this country. That, of course, is the answer to all our international competitive problems—getting competitive pricing of unit labour costs, as my right hon. and learned Friend the Chancellor of the Exchequer made clear in a speech at the weekend.

Mr. Park

Does not the Minister agree that people might work harder if they were offered the same job security as Japanese companies extend to their employees?

Mrs. Oppenheim

Many people in Japan have earned their job security by the levels of productivity achieved in the past few years and by the pay settlements that they have been satisfied with. I agree with the hon. Gentleman on one point. There is great motivation for the Japanese worker in terms of identity with the interests of his company. I should like to see higher motivation in Britain on that basis.