HC Deb 02 May 1984 vol 59 cc342-3
13. Mr. Sims

asked the Secretary of State for Trade and Industry if he is satisfied that the restrictions on the import of textiles from Hong Kong imposed under multi-fibre agreement III have been matched by increased production and sales by United Kingdom manufactures in 1983.

Mr. Fletcher

There have been increases in production and sales by United Kingdom manufacturers of textiles and clothing in 1983 and I have no doubt that the Government's firm and effective implementation of the multi-fibre arrangement and the bilateral agreements concluded thereunder, including that with Hong Kong, has been a major contributory factor to this improvement.

M. Sims

Is there not a good deal of evidence that the effect of the MFA has been to enable EC textile goods to come in but that it has been of very limited benefit to the United Kingdom industry and has been a positive disadvantage to Hong Kong suppliers? Is this a sensible approach at a time when we should be giving every possible support to Hong Kong? I therefore suggest that we should reconsider the basis upon which the next MFA is made.

Mr. Fletcher

On the last point, the present arrangements do not expire until 1986 and we shall be considering between now and then what new arrangements should be made. The agreements themselves are concerned with imports from non-EC countries. If imports are coming from EC countries, that is simply a sign of the competition that exists within the Community.

Mr. Pike

Will the Minister accept that there is still considerable concern among people buying textiles, in that they cannot tell in which country the material and textiles have been woven and feel that there should be much clearer identification of the country of manufacture as well as where the material is made up?

Mr. Fletcher

We cannot stop forgeries, but the law states that the country of origin should be clearly marked on the goods.

Mr. Kenneth Carlisle

Does my hon. Friend agree that, as a trading country exporting a third of what we produce, the greatest threat to us is an expansion of protectionism? Will he ensure that we resist the growing trend towards protecting industry in other areas, as this is now a major threat to us on the world scene?

Mr. Fletcher

Yes, Sir. My right hon. Friend made that clear in no less a place than the United States just a few months ago in extremely strong language.

M. Gould

Surely there is little point in restricting imports from low-cost countries if the only consequence is to make room on the British market for unrestrained imports from the EC. Is the Minister aware that last year imports of EC textiles and clothing rose by 16 per cent. to a record deficit of £857 million? Will he further recognise, on a slightly different point, that the MFA provides little protection unless we can take some safeguarding action to deal with the immense import surges such as are currently occurring in respect of Turkish cotton velvet fabric?

Mr. Fletcher

All those matters must be considered, but they depend upon the degree of competition within the European Community. We trade textiles with the Community on a free and fair basis.