Exports to Latin America (Hansard, 14 February 1996)

§ 7. Mr. Jacques Arnold
To ask the President of the Board of Trade what support his Department is giving to exporters to Latin America. [13509]

§ Mr. Nelson
Nine export promoters are helping UK companies win business in Latin American markets, 26 trade missions and eight trade fairs are planned this year, and my Department has launched a three-year export promotion campaign, "Link into Latin America".

§ Mr. Arnold
May I congratulate my right hon. and hon. Friends on inventing the posts of trade promoters, and say that the work that they have done already is remarkably 998 effective? One of the best ways in which Ministers can help British exports to Latin America is by continuing their growing practice of leading trade missions. I wish the Minister well for his forthcoming visit to Brazil, the powerhouse of Latin America, and to Chile.
When the Minister and his colleagues consider the transatlantic trade arrangements and the free trade area, will he bear in mind that the other side of the Atlantic does not consist solely of north America but also includes the powerful and growing economies of Latin America, which offer Britain such great opportunities? Will he do all he can to further Europe's transatlantic arrangements with the whole of America?

§ Mr. Nelson
I am grateful for my hon. Friend's sentiments. Latin America is increasingly recognised as a target and a priority market, although our performance there has not always matched expectations. I was down Mexico way myself last week, and I am off to Chile and Brazil next week, so I shall be doing as my hon. Friend suggests, taking with me business men and women from this country who are forging new markets with new products in Latin America. That is good. It is important to recognise, as my hon. Friend does, that the Americas are a big market. Mercosur and the North American Free Trade Agreement countries are increasingly making overtures to each other. Just as they regard the United Kingdom as the gateway to Europe, we must regard some of those countries as the gateway to NAFTA and Mercosur.

§ Mr. Dalyell
If the Minister can go down Mexico way, how about up the Orinoco? As the new Venezuelan ambassador has outlined the opportunities which exist in Venezuela, where we have less than 1 per cent. of the market—rather less than previously—could the three-year programme pay some attention to Venezuela?

§ Mr. Nelson
I take what the hon. Gentleman says seriously because he knows the country and the market. We have a market plan for Venezuela. He is right that it is an important market—it is, I believe, the 12th largest petroleum producer in the world—but it has serious economic issues to address. Inflation is running at between 70 and 90 per cent.—almost reminiscent of inflation rates under Labour Governments—it has had to devalue substantially, its exports are subject to great controls and it has stopped payments on, for example, the Scotch whisky industry, which is the biggest market in Latin America. There will be huge opportunities if it can get its economic act in order. If it can do that with the help of the International Monetary Fund later this year, the market will once again be open for business and British business men will be there in force.