Japan (Trade Deficit) (Hansard, 27 March 1985)

§ 15. Mr. John Townend
asked the Secretary of State for Trade and Industry what was the United Kingdom trade deficit for 1984 with Japan; and what action the Government intend to take to rectify this position.

§ Mr. Tebbit
The visible trade deficit with Japan in 1984 was £2,870 million. I shall take the opportunity of my forthcoming visit to Japan to encourage measures to open Japanese markets to United Kingdom exports.

§ Mr. Townend
Does my right hon. Friend not find the figures extremely disturbing? Is the Japanese market now open to British goods and services to the extent that the British market is open to Japanese goods and services?

§ Mr. Nicholas Winterton
No, it is not.

§ Mr. Townend
If it is not, will my right hon. Friend tell the Japanese that the time for prevarication is over and that we want action? Will he tell them that if they do not open the market soon the pressure for retaliation by Britain will be irresistible?

§ Mr. Tebbit
My hon. Friend rightly points to a deep-seated problem which is also experienced by others. The Americans have a deficit on trade with Japan of $32 billion and the Federal Republic of Germany has a deficit with Japan of $3.9 billion, compared with our deficit with Japan of $3.4 billion. I shall certainly draw to the attention of my Japanese hosts the fact that they have a great interest in the open trading system and that if that system is seen not to work because of protectionist measures by any country the whole system will be threatened.

§ Mr. Foster
Has the Secretary of State noticed the Japanese determination to resist foreign ownership of its telecommunications industry? Does that not contrast with his policy of selling off and selling out Britain at the drop of a hat?

§ Mr. Tebbit
I thought that there was general applause for the concept that the Japanese economy should be made more open, not that we should try to close our economy. We are vigorous in our action when Japanese malpractice can be proved on such matters as dumping. Vigorous antidumping measures have been taken by the European Community in recent months.

§ Mr. Nicholas Winterton
What about the importance of employment?

§ Mr. Tebbit
My hon. Friend will not have an answer to his questions if he shouts them at me from a sedentary position.

§ Mr. Sims
Will my right hon. Friend take the opportunity to confirm that while Japan is a specialised and complex market, a number of well-established British trading companies in Tokyo are willing and able to evaluate the suitability of British products for the Japanese market and to help with marketing?

§ Mr. Tebbit
Yes. British companies are succeeding in the Japanese market. It is a difficult market, not only because of restraints that may be imposed by the Japanese Government, but because of cultural attitudes in Japan. Many British business men do not speak Japanese, whereas many Japanese business men speak English. The Japanese are exceptionally good at maintaining quality and delivery times, whereas in the past that has not been a special characteristic of British manufacturers, who are perpetually hindered by the universal support for every trade dispute, however absurd, by Opposition Members.