Japan (Hansard, 17 March 1993)

§ 6. Mr. Dunn
To ask the President of the Board of Trade if he will indicate the current annual level of exports to, and imports from, the empire of Japan; and if he will make a statement.

§ The Minister for Trade (Mr. Richard Needham)
The United Kingdom's exports to Japan in 1992 were £2,230 million. United Kingdom imports from Japan in 1992 were £7,450 million. Our exports to Japan increased rapidly in the late 1980s. They have held up well in the past two years despite difficult economic conditions in Japan.

§ Mr. Dunn
Is the Minister aware that in certain sections of British industry there is a view that the Government of the empire of Japan erect unfair obstacles to prevent British goods from gaining entry to Japanese markets? Will he undertake to tell the imperial Government that unless they permit easier access for British goods to Japanese markets we may have to reconsider our position on the entry of Japanese goods to this country?

§ Mr. Needham
I hear what my hon. Friend says about the imperial Government. A very large number of Japanese investments in this country are now contributing to the British balance of payments in a much greater way than any other country's investments, with the possible exception of the United States. My hon. Friend is right to say that there are still barriers to our exports to Japan. One of the reasons for my visit to Japan last week was to raise those matters with the Japanese Government and demand that the remaining trade barriers come down.

§ Mr. Flynn
Does the Minister agree that one of the most successful products of British industry in the past 25 years was the transputer, the computer on a chip, which was exported to Japan very successfully? It will continue to be exported from the end of this year, but from France and Italy because their Governments have invested in the transputer. It will no longer be produced in Britain because our Govermnment have refused to invest in it. Why is that?

§ Mr. Needham
I do not accept the hon. Gentleman's comments. He knows perfectly well that decisions made by companies are up to them, not the Government. Our technological collaboration with Japan is closer and has more depth to it than that of any other European country and has already had a major effect on the quality of research, development and production in this country.

§ Mr. Bill Walker
Has my hon. Friend noticed the massive imports coming from Japan, which seems to have achieved that despite the fact that it is not a member of the European Community? Will he explain how this possibility has come about and what he expects will change when the Maastricht treaty is concluded, if it ever is?

§ Mr. Needham
It is not the possibility of Japanese imports; it is the reality of them. One of the major reasons for that is the quality of the goods that it produces. The counter to that argument is the ever-increasing number of 274 Japanese companies that have set up in business here and are now doing so much to improve the quality of our manufacturing base.
It is vital that we continue to attract and invite Japanese companies to invest in this country. It would be a great help in achieving that objective if, when we take missions to Japan, Opposition Members did not pull out, on the orders of their Chief Whip, two days before we are due to leave. The hon. Member for Redcar (Ms Mowlam) was told by her Chief Whip that she could not go to Japan, even though we were pairing, which made it impossible for us, on a cross-party basis, to offer support for Japanese investment in this country and explain our role in Europe. That was an absolute disgrace.