GATT (Hansard, 14 March 1990)

§ 10. Mr. Kirkwood
To ask the Secretary of State for Trade and Industry if he will make a statement on the progress being made in reducing tariff barriers in interventional trade in the current general agreement on tariffs and trade round.

§ Mr. Redwood
It has been agreed that participants in the Uruguay round of GATT negotiations should submit offers of tariff reductions by mid-March, to be followed by requests for improvements in others' offers by the end of April. I expect the European Community to offer a reduction of around one third in tariff levels, which is the target agreed by Ministers at the mid-term review of the round. This would be subject to review in the light of offers from others.

§ Mr. Kirkwood
Does the Minister accept that for trade to be fair there must be reciprocal openings of other markets in third countries outside the EEC if the international conditions are to be stabilised and made productive for all parties? Does he recognise that the particular interests of the high-quality cashmere industry in the central and border areas of Scotland are vitally dependent on getting access to those new markets? Will he give the House an assurance that the special interests of the high-quality hosiery industry in those areas will be taken into account when negotiating the final EEC mandate for the GATT talks?

§ Mr. Redwood
The hon. Gentleman is right. There needs to be reciprocal action by all parties to the GATT discussions so that there is progressive market opening on both sides. There is major asymmetry in current tariff levels with Japan at 2.5 per cent. and the European Community at 5.5 per cent. on average for industry, whereas India and Brazil are at 135 per cent. and 45 per cent. respectively.
I can give my hon. Friend a pledge that the interests of important British industries will be taken into account in our advice to the European Community, but I stress that it is an EC matter and the EC will handle the negotiations for ourselves and the other 11 member states.

§ Mrs. Currie
Is the Minister aware that there is concern in parts of the footwear industry in my constituency about the possible dumping of shoddy goods from abroad? Does he share with me a robust view about fair competition but, nevertheless, agree that where there is any evidence of unfair practices the Government will take action?

§ Mr. Redwood
I agree with my hon. Friend that it is important to make trade more liberal and to open it as much as we can, but there need to be GATT disciplines—as there are—if trade is unfair. One of the negotiating objectives of our partners and ourselves is to ensure that there are sensible disciplines against sudden surges m imports of sensitive products and against dumping and other malpractice.

§ Mr. Madden
Will the Minister make it clear that unless real safeguards are secured for international textiles within GATT the British Government remain committed to an extension of the multi-fibre arrangement? Will he say what progress is being made in persuading the Americans to abandon national quotas?

§ Mr. Redwood
We have extensively debated the arrangements for the MFA and for the transition that would be necessary if successful negotiations were achieved in GATT. Those debates made it clear that GATT procedures and protections will need to be strengthened in several areas, such as design and intellectual property, surges of imports, dumping, subsidy and other problems of which the hon. Gentleman is aware. I reaffirm the pledge that those are matters for the GATT negotiations and that they will be handled by the EC negotiators. As we come near the end of the round—it has to be completed this year—it will be necessary for the EC as a whole to make a judgment about whether sufficient progress has been made and whether the right assurances have been achieved for the package to be in the EC's interests by giving us more free trade opportunities.