§ Q4. Mr. Lathamasked the Prime Minister what progress has been made during the Christmas Adjournment in correcting unsatisfactory trading imbalances with Japan, Spain and France respectively.
§ The Prime MinisterDuring the Christmas Adjournment the Japanese Government announced a number of tariff cuts on items where we have been pressing for reductions. They also said that they would review standards and testing procedures, and we hope that this will produce a relaxation of non-tariff barriers to trade. I told Foreign Minister Abe that changes of this nature were welcome and a positive step, though their impact was likely to be small in relation to the magnitude of the trade imbalance.
In the past six weeks the European Commission has had a number of detailed discussions with Spain. It is to report on the outcome to the Foreign Affairs Council on 24 January.
Community free trade is a treaty right. I believe that our strong representations to the French Government are having some success.
§ Mr. LathamI thank my right hon. Friend for that full and firm reply. Does she agree that the grotesque tariff and non-tariff imbalances with those countries have continued for far too long, that we have been far too patient and that, if something is not done soon, we should retaliate in kind?
§ The Prime MinisterI agree with my hon. Friend that the differences are grotesque—in some cases, such as Spain, due to tariff barriers, but in other cases due to non-tariff barriers. Because of this, we were very firm with the European Commission and have taken steps to speed up the negotiations, which were proceeding very slowly, with both Japan and Spain. I believe that our representations have had considerable effect. We shall continue to press them very hard.