§ 1. Mr. Hal Millerasked the Minister for Trade what are the respective import tariffs in the United Kingdom and Spain relating to trade in motor vehicles between the two countries.
§ The Minister for Trade (Mr. Peter Rees)A number of rates of duty apply. For example, for cars the rates are 4.2 per cent. and 36.7 per cent. respectively; for large commercial vehicles 8.8 per cent. and 28 per cent.; and for small commercial vehicles 4.4 per cent. and 31.6 per cent. These rates stem from an agreement signed in 1970 between Spain and the Community of Six.
§ Mr. MillerI thank my hon. and learned Friend for confirming the great disparity in tariffs, particularly for motor vehicles. Given the delay in any agreement on the date of Spain's formal assumption of the obligations of EEC membership and the doubt about the length of any interim period, for how long are the Government willing to put up with such a gross disparity? Cars can be imported into Britain on a large scale, and the situation is likely to be aggravated by the introduction next year of General Motors' S car.
§ Mr. ReesThe transitional period for Spain— in the event of Spain's accession to the European Community — is under discussion in Luxembourg today. We shall press for a short transitional period because of the disadvantage to which my hon. Friend has drawn attention. However, I assure my hon. Friend that that will not discourage us from raising the question bilaterally in the intervening period.
§ Mr. John H. OsbornIs my hon. and learned Friend aware that the component manufacturers—many of whom are in the Sheffield area—find themselves at a considerable disadvantage when selling their products in this country, let alone in other EEC countries, because of the tariff system? Will he do his utmost to speed up the shortening of the tariff gap between British exports to Spain and Spanish exports to Britain?