§ 39. Mr. Hal Millerasked the Lord Privy Seal if he will make a statement upon the results of the European Economic Community surveillance of sensitive categories of imports from Japan and upon any conclusions drawn by the Council of Ministers regarding the future of relations between the European Economic Community and Japan.
§ Mr. Humphrey AtkinsThe Commission does not have United Kingdom import statistics, because of the strike by civil servants, but it has been monitoring information from other sources. It reports that in the seven months to July 1981 there appeared to be no major deterioration in the aggregate figures for Japanese exports to the Community in the three sectors under surveillance. However, within these sectors there were sharp increases in European Community imports of particular products, notably light commercial vehicles and machining centres. Up to the end of August the Community's deficit on total trade with Japan also increased by around 25 per cent. compared with the corresponding period last year. The Commission and member States have renewed their representations to the Japanese Government and have made them to a group of top-level representatives of Japanese industry who toured Europe last month. The Foreign Affairs Council will review the situation at its next meeting on 7 and 8 December.
§ Mr. MillerI thank my right hon. Friend for that full reply. Will he say what action is intended on those items where damage has been found to be severe? Does he believe that the best way forward is by voluntary industry arrangements, which the Secretary of State for Trade said on Monday had clearly failed, or by EEC Government actions, which the Secretary of State for Trade said would take a long time?
§ Mr. AtkinsMy right hon. Friend said in his answer on Monday that he did not disparage what had been secured by voluntary arrangements. Those voluntary arrangements have stood us in good stead over many years. They preceded our accession to the Community, and they still exist. It is impossible to say precisely what would have happened had they not existed, but the best estimate that I can make is that Japanese imports in these sensitive sectors would have been substantially larger than they are now. However, we are now talking about the future. The Community is engaging in discussions with the Japanese to see how this balance can be rectified. For example, Commissioner Davignon visited Japan for this purpose a fortnight ago. It is too early to say whether what will emerge will be voluntary agreement or something different. The best way forward, in my view, is to achieve voluntary agreements that are adhered to.
§ Mr. MikardoIs it not a fact that the negotiations between Japan and the Commission on trade between the two blocs are increasingly taking on the aspect of a fight between a judo black belt and an infant player of tiddlywinks?
§ Mr. AtkinsI do not believe that the Community, with its size and strength in negotiation, is regarded in precisely the terms that were used by the hon. Gentleman.