HC Deb 21 February 1983 vol 37 cc651-2
8. Mr. Hal Miller

asked the Minister for Trade if he will make a statement on the trend in the balance of trade with Spain in 1982 (a) overall and (b) in manufactures.

Mr. Peter Rees

In 1982 the total of visible trade between the United Kingdom and Spain moved into approximate balance, but the growing trade in manufactures remains in deficit.

Mr. Miller

As the EC appears to be unable to deal with our grievance against Spain over the grossly distorted tariffs applicable to the automotive trade, will my hon. and learned Friend say whether the Government are now considering what unilateral action should be taken?

Mr. Rees

My hon. Friend is a little premature in saying that the Commission is unable to address itself effectively to this question. There have been considerable negotiations in Brussels and in Madrid, and the Commission will be reporting to the Foreign Affairs Council tomorrow. My hon. Friend would be well advised to await the outcome.

Mr. Sheerman

If the Minister continues to fiddle while manufacturing exports dwindle, and if he does not take measures to remedy the situation, we shall be further down the road towards an undeveloped economy, exporting raw materials and sucking in highly sophisticated manufactured goods. Is he aware that this is a crisis that the Government have failed to recognise?

Mr. Rees

The flaw in the hon. Gentleman's argument is that our manufacturing exports are not continuing to dwindle.

Mr. Beaumont-Dark

Does my hon. and learned Friend accept that many manufacturers, including the Ford Motor Company, are taking an unfair advantage of tariffs in Spain, whereby the Spanish charge 10 times the tariff that we charge? Is he aware that, whichever party forms the Government, many people in the west midlands do not believe that this state of affairs should be allowed to continue and that we, as Members of the House, will not allow it to continue?

Mr. Rees

My hon. Friend has discussed the tariff imbalance with a number of my right hon. and hon. Friends and with me. We are aware of it. It is for that reason that we brought strong pressure to bear on the Commission to enter into negotiations with the Spanish Government.

Mr. Archer

Does the hon. and learned Gentleman not have a sense of urgency about this matter? Is there not some need in the EC for the equivalent of the smoking gun reaction in America towards unfair trading? Can he give the House any idea of how long it will take before the EC takes sone action? Alternatively, will the Government take action?

Mr. Rees

References to the smoking gun come ill from a member of the previous Government. So far as I am aware, that Administration was supinely unaware of the growth of the problem.