HC Deb 20 March 1991 vol 188 cc281-2
17. Mr. Anthony Coombs

To ask the Secretary of State for Trade and Industry if he will make a statement on the reopening of GATT negotiations.

Mr. Sainsbury

We welcome the fact that a basis for the resumption of negotiations has now been established. We believe that a successful conclusion would provide a valuable non-inflationary stimulus to world trade and investment.

Mr. Coombs

Does my hon. Friend agree that one of the most important objectives of the current GATT round is to ensure that state subsidies made illegally to other foreign companies, which disadvantage our own companies, are eliminated? To that end, will he look again at the 1984 case of illegal state subsidies paid by the Belgian Government to Beaulieu, Belgium's largest carpet manufacturer, which have so far not been repaid? Does he understand that the House fully supports the Government's stance in urging through GATT that penalties be imposed on national Governments who do not ensure repayment of such illegal subsidies?

Mr. Sainsbury

My hon. Friend makes an important point because the strengthening of the rules and disciplines of GATT is one of the main purposes of the current Uruguay round. It is one reason why we believe an early, successful conclusion of the round to be important. I also agree that it is most unsatisfactory that the penalties mentioned by my hon. Friend have still not been paid; we are looking to see how we can improve enforcement procedures in the Community.

Mr. Cryer

Will the Minister press for the extension of the multi-fibre arrangement beyond July this year, when it expires, if GATT does not prove satisfactory? As he knows, 14,000 jobs are directly involved in the textile industry in Bradford. It is a modern and up-to-date industry, in which the work force has co-operated enthusiastically in all the changes and modernisation. Those people deserve a Government who will preserve and develop jobs, but at the moment the Government seem to be letting the industry down—and that is the view of both trade unions and employers.

Mr. Sainsbury

I am glad to be able to agree with the hon. Gentleman about the efforts that the textile industry has made to invest and to modernise. It is as a result of those efforts that, unfortunately, there have been job losses in some areas. It is important to the industry that the GATT round creates better market access for its exporters and I am glad to say that the industry is a successful exporter.

Mr. Bill Walker

Will my hon. Friend bear in mind the importance of exports to Scotland, whose export record is even better than that of the Japanese, and in particular how whisky is affected in the negotiations? Will he also bear it in mind that malting barley and grain are essential ingredients in whisky and that without them we could not sell that marvellous product of which over 90 per cent. is exported from Scotland?

Mr. Sainsbury

I am happy to join my hon. Friend in paying tribute to the exporting success of Scottish industry and commerce. I very much recognise the importance to that success of market access for that excellent product, Scotch whisky. When I talk to my opposite numbers in other countries I seldom miss an opportunity of not only commending the product but urging better market access for it.