§ 6. Dr. Vincent Cable (Twickenham)What proposals she has for reforming the EU' s generalised system of trade preferences for developing countries. [138109]
§ The Secretary of State for International Development (Clare Short)The European Commission is reviewing the generalised system of preferences, which allows access to the European market for developing countries that do not have any other preferential trading arrangements. The UK has been one of the most active member states in pushing for improvements. We are pressing for reductions in the complexity of the system and to increase the level of market access—especially in the areas of agriculture and textiles.
§ Dr. CableDoes the Secretary of State agree that the once idealistic system of trade preferences has been enormously devalued by the proliferating red tape and numerous exemptions given to protectionist interests in European agriculture and industry? Will she commit the British Government to a radical reform that will roll back 299 trade barriers for developing countries in general and provide unrestricted access for the world's 48 poorest countries?
§ Clare ShortI agree very much with the hon. Gentleman. The GSP is good but very complex, and there is evidence that many countries do not take up their preferences because it is so unclear that they have them. So, the system is clearly not working well. I agree also that there are protectionist instincts in some EU countries.
I agree with the hon. Gentleman in his fine book on globalisation, which I have read, that opening up trade in a way that enables countries to adapt will enlarge the world economy for us all, particularly the poorest countries.
§ Mr. James Paice (South-East Cambridgeshire)Nobody would deny that opening up trade to the least developed countries is bound to be to their advantage, but may I take the right hon. Lady back to the issue of sugar? It is not right simply to say that because such countries have only 0.4 per cent. of world trade, the market should be opened to everybody. To pauperise some of the underdeveloped world in order to help another part will not achieve anything. Will she have another look at the Government's support for the inclusion of sugar in EBA—there should at least be a proper impact assessment and the ACP countries should be properly consulted.
§ Clare ShortI am shocked that although the Conservative party claims to be in favour of free trade, when it comes to a specific provision for the poorest countries in the world, it is suddenly against it. As I have said, I do not agree with Conservative Members. The historical record—[Interruption.] The hon. Member for Chesham and Amersham (Mrs. Gillan) should listen instead of heckling. The ACP treaty—Lomé—gave Africa privileged access to the European market, but the poorest countries did not take it up because they had other difficulties with their economies, such as the incidence of conflict and with transport. The arrangements will help them, but there will not be a massive take-up. In the meantime, because of the World Trade Organisation bringing down tariffs right through the international system, the countries that depend on preferential systems will adjust anyway. We will look to that adjustment and look to help them. The hon. Gentleman and his party should think again about questioning this help to the poorest countries in the world.