HC Deb 05 December 1990 vol 182 cc292-4
5. Mr. Allen

To ask the Secretary of State for Trade and Industry if he will make a statement on the Uruguay round of the GATT talks.

The Minister for Trade (Mr. Tim Sainsbury)

My right hon. Friend the Secretary of State is this week leading the United Kingdom delegation to the ministerial meeting in Brussels called to conclude the Uruguay round of trade negotiations. While the outcome remains uncertain and many difficult issues have still to be resolved, success is in our view essential to maintain and strengthen the multilateral trading system. We are working with our Community partners in Brussels this week to bring this about. The House had a debate on the Uruguay round on 23 November.

Mr. Allen

Is the Minister aware that every family in Britain pays an unseen and unauthorised tax of £15 a week to sustain agricultural subsidies so as to ensure that Christian Democrat and Conservative small farmers re-elect the same Governments in Europe? Will he have a word with the Secretary of State in Brussels and ask him to consider seriously the United States Government's proposals to reduce agricultural subsidies and support throughout the world, so that the bill paid by British families can be reduced?

Mr. Sainsbury

I very much welcome the hon. Gentleman's enthusiastic support for an open trading system, because that is what we believe in. I hope that I shall have that same support if we start talking about textiles.

Sir Peter Hordern

Is my hon. Friend aware that the common agricultural policy is the biggest single obstacle to the success of the GATT round? Does he agree that it is time to get rid of a policy that does not help the farmer and places an intolerable burden on every family in Europe?

Mr. Sainsbury

My hon. Friend should recognise the fact that, although agriculture is important to achieving a successful outcome of the Uruguay round of the negotiations, it is not the only matter at issue. We hope that a flexible approach by the Community to the offer on the table, which is a good offer, will enable progress to be made on other areas of great importance, covering the whole range of exports of goods and services, which represent about a quarter of the output of British industry and commerce. All those elements can benefit from a successful outcome. If we concentrate solely on agriculture, we mislead ourselves as to what the round is about—but I agree that we must adopt a flexible approach.

Mr. John D. Taylor

As the objective of the European Community is that we all speak with one voice, does the Minister think that that should be seen to happen in practice, especially in negotiations in connection with GATT? Does he agree that the Government's decision yesterday to break rank with the rest of the Community is downright disgraceful? Will not that damage the interests of the United Kingdom's agriculture and weaken the Community's negotiating stance at these talks?

Mr. Sainsbury

I do not recognise what the right hon. Gentleman is talking about. He speaks about the need for the European Community to speak with one voice. As I am sure he is well aware, the Community is the negotiating party in the GATT round. Of course, I hope he will agree that before the Community speaks with one voice, it would be sensible for the members of the Community to discuss and agree what is to be said by the Community on their behalf.

Mr. Favell

Does it strike my hon. Friend as ironic that the European Commission, which is supposedly dedicated to free trade, should be suggesting a common economic and fiscal policy and a single currency at the same time as its flagship, the common agricultural policy, is jeopardising the whole of the world's free trade? Goodness only knows what would happen if there were a common defence policy and the Community were in charge of sending British troops to war.

Mr. Sainsbury

My hon. Friend makes a good point. It is important for the Community to show that it is able to make progress on issues for which it has been responsible for a long time, such as agriculture, before taking on fresh responsibilities. I hope, and I know that my right hon. Friend who is in Brussels also hopes, that flexibility will be shown at the meeting that is due to take place in about two and a half hours. I hope that we will be able to make substantial progress across the whole range of subjects being discussed.

Mr. Gordon Brown

Given the importance of the world trade talks to many industries and services and the seriousness of a breakdown, will the Minister tell us whether the Prime Minister has talked to Chancellor Kohl and President Mitterrand, or will talk to them at their joint meeting today, to see whether at the highest level a positive and constructive European initiative can be agreed in order to avoid deadlock?

Mr. Sainsbury

As I have just said, there is a meeting at 6 o'clock Brussels time, 5 o'clock our time, of Trade and Agriculture Ministers of the Community. I have every hope that that meeting will cover the whole range of subjects being discussed. The Commission intends to put to the Ministers attending that meeting the progress that has been made. As a result, I hope that the Uruguay round will be able to go forward to a successful conclusion and that there will not be any damage to the prospect of a successful outcome because of a lack of flexibility in agriculture negotiations.

Mr. Riddick

Textile manufacturers in my constituency and throughout the country are concerned about whether the Government are taking a sufficiently tough line on the negotiations over the phasing out of the multi-fibre arrangement. Can my hon. Friend assure the House that the Government and the European Community will take an extremely robust line to ensure that export subsidies and tariff barriers, which are holding back British exports, are done away with? British textile manufacturers are not afraid of free trade as long as it is fair trade, but we need a level playing field.

Mr. Sainsbury

I assure my hon. Friend that we very much recognise the importance to our textile industry of better market and export opportunities because it is a successful exporting industry. He invites us to take a robust line. We are doing that in seeking reductions not only of tariff barriers but of other obstacles, including the subsidies to which he refers, so that we can create a more level playing field.

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