HC Deb 08 March 1995 vol 256 c335
19. Mr. Clappison

To ask the President of the Board of Trade what is his policy towards the World Trade Organisation; and if he will make a statement.

Mr. Ian Taylor

The new World Trade Organisation is the custodian of the multilateral trading system, which brings great benefits to the United Kingdom in terms of economic wealth, jobs and consumer choice. We intend to encourage it to develop effectively.

Mr. Clappison

Will my hon. Friend comment on the prospect of China joining the World Trade Organisation, given the recent trade issues between China and the United States?

Mr. Taylor

It is important to bring China into a modern multilateral organisation such as the World Trade Organisation. I am in regular talks with the Commissioner who is responsible for European negotiations with China, Sir Leon Brittan, and the prospects look encouraging. The key matter is that China must come in on acceptable terms, otherwise it could destabilise the whole organisation. We have the same sort of worries about China outside the organisation as the Americans, particularly in the matter of piracy of intellectual property and in connection with the music industry, which is a great contributor to our external trade performance.

Mr. MacShane

Can the Minister give some guidance on whom the Government will back as the new director general of the World Trade Organisation? The Minister will know that Mr. Salinas of Mexico dropped out after being linked, via his brother, to the murder of an important politician. The European Union is backing Mr. Raimondi of Italy, who is a strong advocate of social links in world trade. What is Britain's line on the next director general?

Mr. Taylor

It is a jolly good job that the hon. Gentleman is not responsible for our discussions because he has named the wrong Italian, but never mind. Mr. Ruggiero, the Italian, is the solidly backed candidate of the European Union and we have never demurred from that. At the last count on an official trawl, he had 59 votes and Mr. Kim, whom I have met, who has been to see me, and who is an impressive candidate, had only 28 votes. President Salinas had about 27 votes and has backed out.

We are urging all other nations to rally round a clear leader, because it is most important for the World Trade Organisation to get its act together quickly. It can do that credibly only if it has an effective director general. We do not wish to see any uncertainty beyond 15 March, when Mr. Sutherland ceases his temporary period in office.