HC Deb 29 June 1981 vol 7 cc566-7
16. Mr. Teddy Taylor

asked the Secretary of State for Trade what has been the average annual deficit or surplus in trade in manufactures with the European Economic Community since the United Kingdom joined the European Economic Community; and what was the average annual deficit or surplus in the comparable period before membership.

Mr. Biffen

In the years 1973 to 1980 the United Kingdom had an average annual deficit of £1.3 billion on trade in manufactures with the European Community. In the previous eight years there was an average surplus of about £0.3 billion.

Mr. Taylor

Why does the Secretary of State think that we have had such a deplorable trading record with the Common Market since we became members while our trade with the rest of the world has improved so sharply? Could part of the reason be the non-tariff discrimination exercised by some of our colleagues in the European Common Market, of which the latest example is the shameful imposition of import deposits by the Italian Government?

Mr. Biffen

Many factors account for the alteration embodied in the statistics which I have quoted. They conceal the fact that the pattern has reversed more recently. A number of those factors involve the quality of our industrial performance relative to our neighbours and the movement of the exchange rates.

Mr. Dykes

Does my right hon. Friend agree that traditionally this country has always had a surplus only with the less developed parts of the world and a deficit with all advanced areas of the worldif they are taken in isolation? Following my right hon. Friend's answer, is it not important to register the point that the total volume of trade is being built up with other European countries, that we are gradually becomingmore of a European Power in terms of that trade and that that is important in the build-up of exports?

Mr. Biffen

Those patterns move in many ways and will convulse those who take a partisan concept of a relatively modest issue such as the trade consequences of British membership of the EEC. For example, we cannot have an enormous increase in energy resources without it having an impact on our imports of energy resources and consequences for other parts of the trade. I believe that the longer one debates that area the more elusive becomes the answer.

Mr. Marlow

Did my right hon. Friend see an answer from my right hon. Friend the Prime Minister last week in which she pointed out that in the last full year before the recession the trade deficit in manufacturers was nearly £3,000 million, which is equivalent virtually to 400,000 jobs? Considering that the European summit is taking place at the moment, should not the loss of jobs from this country to Europe be urgently debated?

Mr. Biffen

I shall draw the attention of my right hon. Friend the Leader of the House to that point. However we should move a little discreetly before identifying trade restraint and employment. Otherwise, my hon. Friend may end up in the new Cambridge school marching shoulder to shoulder with the right hon. Member for Bristol, South-East (Mr. Benn).