HC Deb 29 February 1984 vol 55 cc239-40
4. Mr. Waller

asked the Secretary of State for Trade and Industry what response he received from the United States Government to his representations concerning the obstacles posed to United Kingdom textile manufacturers by high import tariffs.

Mr. Tebbit

I raised the question of the reclassification by the United States Customs of certain types of garment in a way which would substantially increase the duties payable on them. The Administration's response was that they believed there was a solution to our problem, and our embassy in Washington is following this up in more detail.

Mr. Waller

I thank my right hon. Friend for that reply, but does he not feel that the problem is somewhat wider? Is he aware that, under the Tokyo round, American tariffs against United Kingdom textile products are due to come down by 1987 to 33 per cent., whereas our comparable tariff is only 13 per cent. against similar products? How can my right hon. Friend possibly justify such a divergence, bearing in mind that the United States is not a developing, but a highly developed, country? If the United States is not prepared to reduce its tariffs against us, should we not consider taking action to protect jobs in our industry?

Mr. Tebbit

It is not for me to justify the United States' policy on tariffs. There are large disparities between some Community and United States textile tariffs. They will be eased, but they will not be eliminated when the Tokyo round of tariff cuts is completed in 1987. We are concerned about those imbalances in market access, and we continue to press the United States to reduce its tariffs where that would help United Kingdom exporters, but our ability to achieve the reductions will often depend on the extent to which we are prepared to offer some concessions in other areas of interest to the United States.

Mr. James Lamond

Did the Secretary of State also raise the other side of the question with the Americans, namely, that if they raise tariffs against not only Britain but countries such as China, textiles which were intended for the United States will flood into Britain and markets which would have been open to us will also be flooded?

Mr. Tebbit

Yes, I made those very points when I was in America. The Americans told me that the measures they had proposed recently were directed not against European and British exporters, but against other countries. However, I also made the point that that would merely make the world position worse and possibly deflect those third party commodities back towards Europe.

Mr. Bowen Wells

Does my right hon. Friend agree that United Kingdom textile manufacturers are hardly in a position to complain about high tariff barriers in the United States when they are protected within the European Community and under the multi-fibre arrangement? Is it not time that the textile manufacturers of the world got together and reduced tariffs all round?

Mr. Tebbit

My hon. Friend directs our attention towards the danger of stone throwing by people who are perhaps living in houses with a certain amount of glazing. We are committed to a firm and effective implementation of the third term of the multi-fibre arrangement, which offers great protection to the United Kingdom industry, but which other people sometimes criticise strongly.