HC Deb 21 June 1982 vol 26 cc11-2
15. Mr. Lennox-Boyd

asked the Minister for Trade what steps are being taken to induce the Japanese Government to reduce the number of tariffs they apply to imports.

Mr. Peter Rees

As a result of pressure from their main trading partners, including the United Kingdom, the Japanese Government are currently carrying out a programme of modest reductions in a large number of tariffs. We shall continue to press for further reductions, particularly on the limited number of items of interest to British exporters on which the tariffs remain high.

Mr. Lennox-Boyd

Does my hon. and learned Friend agree that it is especially important to press harder in this direction for two reasons, which are that the countries of the free world are struggling to emerge from the recession and, secondly, that it is likely that a large order for the replacement of the "Atlantic Conveyer" might be placed in Japan?

Mr. Rees

The replacement of the "Atlantic Conveyer" must be a matter for the company concerned. I have no doubt that it will take note of what my hon. Friend has said. My hon. Friend is right in general terms. The Japanese market is extremely important and it is important to impress on our friends in Japan that our companies should have the same open access to their markets as we afford to its companies in the United Kingdom.

Mr. Dubs

The Minister has commented adversely on the non-tariff barriers erected by the Japanese Government and Japanese industry. What is he doing about these barriers?

Mr. Rees

Constant multilateral and bilateral pressure has resulted recently in the package of measures announced by Prime Minister Suzuki. I do not pretend to the House that they completely satisfy us, but they are a further step in the right direction.

Mr. Bowen Wells

I wish to encourage my hon. and learned Friend to persuade the Japanese to reduce tariff and non-tariff barriers to our trade, but we have been singularly unsuccessful over the years in achieving that. Does he agree that the real answer is to encourage investment by Japan in the United Kingdom? Can he tell me what progress has been made with the Nissan investment?

Mr. Rees

I am not able to give the House the up-to-date position on the Nissan investment, which is primarily the responsibility of my right hon. Friend the Secretary of State for Industry. My hon. Friend is right to say that we should encourage investment by Japanese companies in the United Kingdom, provided that it is on the right terms and involves an increase in British jobs and a transfer of technology to this country.

Mr. John Smith

Will the hon. and learned Gentleman review his answer about the Government's noninvolvement in the order to replace the "Atlantic Conveyer"? The British merchant fleet is not purely a commercial entity as recent events have shown. Secondly, would it not be disgraceful if Japan became the beneficiary of the sad loss of the "Atlantic Conveyor", when Japan has pursued an opportunistic economic and political policy over recent months?

Mr. Rees

I would be sorry, as I am sure the House would, if an order of this dimension went to a Japanese rather than a British yard. However, unlike the right hon. Gentleman, I do not adopt a dirigiste view of the economy, particularly in regard to merchant shipping.