GATT (Hansard, 10 June 1992)

§ 9. Mr. Ian Taylor
To ask the President of the Board of Trade what progress has been made in the general agreement on tariffs and trade negotiations.

§ Mr. Needham
Talks are continuing between the United States and the European Community to try to resolve their remaining differences, principally over agriculture. That is essential to open the way to wider agreement in the round.

§ Mr. Taylor
Has my hon. Friend noted the forecast that a successful conclusion of the GATT talks could lead to an increase in world trade in goods and services of £110 billion a year? With the safeguards for countries in the developing world, might not the benefits of such a successful conclusion be far more in the long-term interest of those countries than the discussions in Rio, with all the media attention focused on them? May we have more media attention focused on the GATT round?

§ Mr. Needham
I entirely agree that a successful outcome to the GATT round would lead to an increase in trade, as suggested by the Organisation for Economic Co-operation and Development, of £110 billion. That wealth creation can produce the tax stream that can do so much to improve the lot of the third world and, above all, its terrible environmental problems.

§ Mr. Madden
To ensure confidence in the British textile and clothing industry, will the Minister say when the Government will announce a further extension to the multi-fibre arrangement?

§ Mr. Needham
As the hon. Gentleman knows, the multi-fibre arrangement will finish at the end of this year, and the method of replacing it is tied up with the GATT negotiations. I still believe that it is probable rather than possible that we shall be able to reach some agreement on GATT, but, failing that, I assure him that the Government will ensure that arrangements are put in place to cover the future of the MFA.