HC Deb 18 April 1990 vol 170 c1412
6. Mr. Harry Greenway

To ask the Secretary of State for Trade and Industry if he has any plans to discuss trade barriers with Switzerland and other European Free Trade Association countries; and if he will make a statement.

Mr. Redwood

My right hon. Friend and I will be meeting the ambassadors of Switzerland and other EFTA countries on 2 May when there will be an opportunity to discuss a range of subjects.

Mr. Greenway

Does my hon. Friend agree that since the EFTA countries trading together form the European Community's largest trading partner, the creation of a European economic space must be the main objective of the British Government's relations with EFTA?

Mr. Redwood

My hon. Friend is right. Between 1972 and 1984 tariff barriers came down and from 1984 onwards, under the Luxembourg declaration, there was progress to include EFTA in a number of market-opening measures to bring our markets closer together. My hon. Friend will be glad to know that negotiations will be under way to see whether we can bring EFTA into a common European economic space with the European Community, and Britain is at the forefront of member states urging that upon our Commission and Community partners.

Mr. Batiste

Does my hon. Friend agree that although it is desirable to extend the European economic space, alongside it must be mutual obligations on a wide range of issues, including non-tariff barriers, state aids and the openness of stock markets in countries apart from the United Kingdom?

Mr. Redwood

My hon. Friend is right, and some of those matters were already covered by the Luxembourg declaration. Many EFTA countries are making good progress in reducing state aids and implementing sensible economic policies. I wish that some Opposition Members would begin to learn from those economic policies. They still seem to be wedded to massive interventionism, which is illegal for a member of the European Community and which is no longer practised by many EFTA states. The Government are determined to see the European Community police those disciplines of fair trading within the Community and throughout EFTA where we have the necessary agreements so to do.