§ 2.49 p.m.
Lord CAMPBELL of CROYMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government whether the recently agreed Supplementary Protocol to the EEC/Portugal Trade Agreement, granting Portugal certain concessions from that Agreement, will adversely affect British interests, in the light of the recommendations of the Select Committee on the European Communities on reciprocity between existing Members of the Community and applicants in industry and trade (17th Report, 1977–78, paragraphs 152(d), (t) and (u)).
§ Lord TREFGARNEMy Lords, the Supplementary Protocol is intended to help Portugal strengthen her economy in preparation for accession. The Select Committee, in paragraph 152(x) of its Report, recommended that the Community should accept
its responsibility in providing adequate support for the development of a sound industrial base in the applicant countries".The concessions in the Supplementary Protocol will not have a significant effect on the United Kingdom's interests in those sectors directly affected, and in the long term our exporters will tend to gain from the strengthening of the Portuguese economy.
Lord CAMPBELL of CROYMy Lords, I thank my noble friend for that reply. Does he accept that certain British industries will in any case suffer dis- 530 advantages as a price for the overriding political aim of Portuguese membership of the EEC? Granted that Portugal is experiencing serious economic difficulties, can the Government none the less be sure that this continued protection for Portuguese industries will not distort the basis for Portugal's accession?
§ Lord TREFGARNEMy Lords, I would not accept that the advantages of Portuguese accession to the European Community are solely political. In the long-term there will he considerable advantages to British industry. As for the short-term, certainly there is a small price to pay, but we are satisfied that this is in our medium and long-term interests.
§ Lord SANDFORDMy Lords, would my noble friend agree that, having welcomed in general the application of Portugal and the other two applicant countries to join the Community, the time has come when we must, in particular, face the implications of that action? Would he confirm that the preoccupation that we all very properly have at present with our own budgetary problems in connection with our membership of the Community, will not be used as a complete bar to any proposals from the Commission to consider pre-accession aid to Portugal?
§ Lord TREFGARNENo, my Lords, there is certainly no bar upon pre-accession aid to Portugal. We are at the moment considering a Commission proposal for this, but no decision has yet been reached.
§ Lord BARNBYMy Lords, will my noble friend remember that when the accession is complete extreme pressure is likely to come from the Portuguese textile industries, which should receive the same kind of careful administrative supervision that it is intended to apply to other EEC countries?
§ Lord TREFGARNEYes, my Lords, the Government are pressing for specific quantitative arrangements for Portuguese textiles after accession. There will also be a safeguard clause in the accession treaty which will allow the Commission to take action if increased Portuguese exports of any products threaten to obstruct the markets of the existing Member States during the transitional period after accession.
Lord CAMPBELL of CROYMy Lords, is my noble friend aware that the report of your Lordships' Select Committee on enlargement has been widely acclaimed as a concise and realistic assessment? Indeed, that is, in particular, a tribute to the noble Lord, Lord Trevelyan, who was chairman of the sub-committee, and whom I am sure all of your Lordships were glad to see return to the House recently after his illness. Does my noble friend recognise that the benefits of that report have not come to an end, because its recommendations apply to the periods of negotiation and of transition?
§ Lord TREFGARNEMy Lords, my noble friend is quite right. It was a most valuable report and I agree with everything that my noble friend has said about it.
§ Baroness HORNSBY-SMITHMy Lords, can my noble friend give us some assurance that, when Portugal gets tax free entry into our markets, simultaneously we shall have more access to her markets against which we have had to suffer very high tariffs?
§ Lord TREFGARNEMy Lords, as I said in reply to my noble friend Lord Barnby a moment ago, we are hoping that we shall be able to achieve an arrangement after accession where there is some specific quantitative restriction upon Portuguese textile imports into the United Kingdom.