HC Deb 14 March 1990 vol 169 cc479-80
17. Mr. Geoffrey Robinson

To ask the Secretary of State for Trade and Industry what is the current balance of trade in the textile industry.

Mr. Redwood

The latest available figures show that imports of textiles exceeded exports by £1,565 million in 1989.

Mr. Robinson

As the Minister knows, given today's dreadful news that our invisible balance is also in the red, those figures give no room for complacency. What objectives does the Minister have for the forthcoming multi-fibre arrangement talks in Europe? Will he specifically tackle the global quota requirement which the United States is establishing and which, as we all know, is simple protectionism?

Mr. Redwood

I have already covered that in answer to a previous question and in extensive debates in the House. My hon. Friend the Minister of Industry has also answered such a debate.

The hon. Gentleman should recognise that the bulk of that deficit is in trade with advanced countries not covered by the multi-fibre arrangement; indeed, £1,248 million of the adverse balance is with such countries, leaving in all probability only a little over £200 million with MFA countries. I have explained the safeguards that the EC will try to negotiate in the GATT round for the textile sector. Of course, when dumping is suspected, cases are pursued, and sometimes action is taken when those cases establish that dumping has occurred.

Mr. Bill Walker

Does my hon. Friend agree that one of the best ways to help the textile industry, and any other industry in the United Kingdom in the export market, is to ensure that we do not indulge in practices such as sanctions which prevent our exporters from benefiting from the markets of people who want to buy from us?

Mr. Redwood

My hon. Friend is right. Open trade is the best of all worlds. It creates prosperity for all who accept its disciplines. It has to be negotiated through GATT to ensure that everyone agrees with it. There are examples of great success within the textile industry. I pay tribute to the wool textile industry where exports are up 10 per cent. to record levels of £673 million in the last year and where there is a favourable balance of trade. Companies such as Courtaulds, Coats Viyella and Dawson International are among our leading exporters and I wish them every success in exporting still more.