HC Deb 17 January 1994 vol 235 cc526-8
40. Ms Quin

To ask the Secretary of State for Foreign and Commonwealth Affairs what assessment he has made of the implications of the current position with the general agreement on tariffs and trade for the United Kingdom programme of development assistance.

Mr. Lennox-Boyd

We welcome the successful outcome of the Uruguay round, which potentially can do more than anything else to boost economic growth in the developing world.

Ms Quin

What plans does the Minister or his Department have to examine the position of countries which it is forecast will not do well out of the GATT agreement? I am thinking in particular of African countries south of the Sahara. Is not that something which his Department should examine urgently in conjunction with the Minister's European counterparts? What will he do to make sure that our aid and trade policies complement and do not contradict each other?

Mr. Lennox-Boyd

The conclusion of the Uruguay round is of benefit to the world as a whole. It is not a zero sum gain. Everyone could benefit from it, including developing countries. However, the hon. Lady has touched on a point that was anticipated. In the short term, some developing countries that are net food importers will have difficulties. The Uruguay round anticipated that difficulty and the agreement includes provisions to assist those countries. The important thing for the developing world is that it will have better market access to the prosperous countries of the world and will face lower protection in those countries in domestic agricultural products, which is what the poor world wants to export to us.

Mr. Jacques Arnold

Is not it the case that, as a result of GATT, developing countries will be able to increase their exports to the extent that the revenue that they will receive therefrom is greater than the aid programmes of the entire western world and Japan put together? Is not that important, because it will allow those countries to get away from the begging-bowl mentality so favoured by Opposition Members?

Mr. Lennox-Boyd

I agree with my hon. Friend. Various studies have concluded that the developing world earns three times as much from trade as it does from aid and that third-world countries will benefit to the tune of some $78 billion per annum once the effects of the agreement have worked through.