Multi-fibre Arrangement (Hansard, 19 July 1982)

§ 1. Mr. Straw
asked the Minister for Trade whether he remains satisfied that the multi-fibre arrangement negotiations will be concluded in September.

§ The Minister for Trade (Mr. Peter Rees)
The Commission has been instructed to report to the Council of Ministers by 30 September 1982 on its negotiations for renewal of the bilateral agreements concluded under the multi-fibre arrangement. It is not possible at this stage to say whether all the negotiations will have been concluded by then.

§ Mr. Straw
Does it remain the view of the British Government and the EC Commission that the letters from Hong Kong that were exchanged at Geneva recognise the EEC's problems and were taken by the British Government and the EC to mean clearly that Hong Kong accepted that there would have to be cut-backs in the levels of the most sensitive imports into the EEC? Does that remain the view of the British Government?

§ Mr. Rees
It is certainly the view of the British Government, although I understand that there is some doubt about the actual construction that the Hong Kong authorities put on the letters.

§ Mr. McNally
Have the Minister and our representatives in Brussels made it clear that the bilateral negotiations are not the opening gambit, with concessions on the way, but that it is the Government's intention to preserve a viable textile industry, and that the textile industry believes that concessions have already been made and that no further concessions will be made during the bilateral negotiations?

§ Mr. Rees
It is certainly the British Government's hope and intention that there should be a viable textile industry in the United Kingdom. It is a little early to judge the bilateral arrangements that have been concluded. It will be necessary to see how they conform with the overall mandate given to the Commission earlier this year.

§ Mr. Maxwell-Hyslop
Is the Commission seized of the necessity in these negotiations to provide that if any further countries are given quotas during the currency of the new agreement they will come out of the total already allowed and not be added to it? Does my hon. and learned Friend agree that this is one of the greatest shortcomings of the two multi-fibre arrangements to date?

§ Mr. Rees
I should not like to comment too closely on the two previous multi-fibre arrangements. I hope that the third multi-fibre arrangement will be stricter and more protective than the two earlier ones. I certainly take on board the point that my hon. Friend makes. He no doubt has in mind the negotiations with the Portuguese and Spanish Governments. That point is well borne in mind by the Commission.

§ Mr. Woolmer
Will the Minister confirm that if the negotiations are concluded by September or October he will give a commitment not to agree to the outcome if it falls below the position stated by the United Kingdom Government without returning to the House? Will the Minister confirm that if the negotiations are not concluded by September he will stand by the commitment to withdraw from the multi-fibre arrangement? As that requires 60 days' notice, and would have to be done by the end of October, does that not point to the importance of coming to the House before the recess to make a full statement to enable the House to consider carefully the matters that could arise during the recess?

§ Mr. Rees
No, I see no point in troubling the House with an entirely hypothetical question before the Summer Recess. The bilateral agreements, on the answer that I have already given, will certainly not have been concluded by the end of September. I intend that the House should be kept fully informed when the bilateral agreements are concluded, and when it becomes necessary for the Community to form a view on their outcome.