§ 12. Dr. Michael ClarkTo ask the Secretary of State for Foreign and Commonwealth Affairs what steps his Department is taking to help promote Britains trade relations with Latin America. [14951]
§ Mr. David DavisJointly with the Department of Trade and Industry, and in association with the Confederation of British Industry, the Foreign and Commonwealth Office is organising a three year Latin American trade campaign—Link Into Latin America—to promote trade and investment. My right hon. Friend, the President of the Board of Trade, launched the campaign at the conference of our heads of mission in Latin America at the CBI Centrepoint on 17 January. Conferences, seminars, inward and outward trade missions, roadshows and lectures are being organised as part of the campaign. We have also strengthened our commercial representation in Latin America.
§ Dr. ClarkI thank my hon. Friend for that answer. Does he think that Latin America is an appropriate area for British investment? What is the extent of our investment in that continent, and can it be used as a basis for furthering even more strongly our trade relations with countries in Latin America?
§ Mr. DavisMy hon. Friend makes a very perceptive point. Our investment base in Latin America and the Caribbean, measured in 1992—the most recent year for which we have figures—amounted to about £13.4 billion. Also in that year—again, it is the most recent for which we have figures—we invested £1.4 billion in Latin America. That is larger than our investment in north America, and it represents a major source of leverage for us in delivering trade, especially exports, into Latin America.
We try to use that as part of our strategy in dealing with Latin American Governments and in securing good conditions, such as double taxation arrangements, for British traders there, and also in encouraging large British companies to help smaller and medium-sized companies to go into that continent. That has been successful, and 1016 there has been an increase of 21 per cent. in exports to Latin America over the past year. I still think that the strategy could be made even more successful, and that is what we seek to do.
§ Mr. Tony BanksWhat is the state of our trade with Cuba at present, and what pressure are the Government putting on the United States Administration to end their absurd and illegal trade embargo on that island?
§ Mr. DavisOur trade with Cuba is perfectly reasonable. My hon. Friend the Under-Secretary of State for Industry and Energy visited Cuba last year. The visit was successful and he met President Castro, who gave him a great deal of time. As for the relationship between America and Cuba, that is a matter solely for those countries.
§ Mr. Jacques ArnoldBearing in mind that the economic power of Latin America is greater than that of Africa, the middle east and southern Asia put together, and despite the fact that we have done exceptionally well there in the past few years, should not we redouble our efforts to work with the markets of Latin America which basically have a European trading tradition and look towards us with extreme good will?
§ Mr. DavisMy hon. Friend is expert in that area and will know that the last decade has been something of a miracle decade for Latin America in terms of democracy, fiscal and monetary disciplines, stability and free trade. He is right to say that we should be putting more effort into that area, and the Government are doing just that. I know that my hon. Friend has attended at least one of the events with which we have been involved. He is quite right—21 per cent. growth in one year is not good enough.