§ 3.7 p.m.
§ Baroness HORNSBY-SMITHMy 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 which countries exporting textile products to the United Kingdom levy import duties on United Kingdom exports of textile products to their countries at rates at least 50 per cent. higher or 100 per cent. or more higher, or impose total embargoes on these imports; and what steps they are taking to increase fair and reciprocal trading.
§ The MINISTER of STATE, DEPARTMENT of INDUSTRY (Viscount Trenchard)My Lords, in 1979 over 98 per cent. of our imports of textile products and clothing came from 46 countries. In 24 of them, responsible for 74 per cent. of our imports, there are no tariff barriers against our textile product and clothing exports 50 per cent. or more higher than those imposed on imports here. There are tariff barriers 50 to 100 per cent. higher in nine markets, responsible for 10 per cent. of our imports, more than 100 per cent. higher in 18 markets, responsible for 23 per cent. of our imports, and total embargoes in seven markets, responsible for 8 per cent. of our imports. Many of these barriers are only against some of our exports. I shall circulate in the Official Report details of the countries concerned. Other important potential export markets have major barriers, but are smaller sources of imports.
1263 Some important barriers are being reduced as a result of agreements reached in the Tokyo Round of GATT Multilateral Trade Negotiations, or otherwise, and the Government take every appropriate opportunity to press for further liberalisation to help our textile and clothing exporters.
§ Following are the details of the countries concerned, referred to above:
§ 1. Countries with tariff barriers against some United Kingdom textile product and clothing exports 50 to 100 per cent. higher than those imposed on imports to the United Kingdom:
§ Canada, Hungary, Iran, Malaysia, Malta, Poland, South Africa, Thailand, United States of America.
§ 2. Countries with tariff barriers against some United Kingdom textile product and clothing exports more than 100 per cent. higher than those imposed on imports to the United Kingdom:
§ Bangladesh, Brazil, Czechoslovakia, Egypt, Finland, Hungary, India, Iran, Mauritius, Pakistan, Philippines, Poland, South Africa, South Korea, Taiwan, Thailand, Turkey, United States of America.
§ 3. Countries with effective embargoes against some United Kingdom textile product and clothing exports:
§ Bangladesh, Brazil, India, Iran, Pakistan, Philippines, Taiwan.
§ 4. The structures of the tariffs concerned are frequently very complicated and entries are based on an assessment of the level of barriers against important United Kingdom exports.
§ 5. Information is not available for certain state trading countries whose tariffs do not have the same role as in market economies.
§ Baroness HORNSBY-SMITHMy Lords, I thank my noble friend for that very informative reply, and I am sure that the additional details that he has promised to publish in Hansard will be very closely analysed. Is he aware that the industry will certainly welcome his undertaking to pursue through GATT, the MFA and the Tokyo Round measures to provide greater reciprocity? I ask this because I suspect that among the countries charging 50 per cent. and 100 per cent. there will be found those most likely to take the higher quality goods which we are being encouraged to make. Does my noble friend not agree that hitherto most of the concessions on tariffs in these various rounds have been made by the EEC countries, while many of the industrialised nations outside of the EEC, quite regardless of their commitments to international agreements, protect their textile industries 1264 by devious subsidies which enable them to export cheap goods to Europe while putting quite prohibitive tariffs (some, as my noble friend has outlined, up to 100 per cent.) on our exports to them? How can this be reconciled with their comitments under international agreements?
§ Viscount TRENCHARDMy Lords, as I have already said, we shall certainly press for reciprocity in the areas of M FA and others via the Community, through whom and by whom the negotiations must be conducted. Yes, my noble friend is right that in the lists which she will find in Hansard there are, outside the EEC, countries with a high standard of living which have tariffs substantially higher, on the whole, than those of the EEC and this country. The USA is prominent in that respect. But the tariffs have been negotiated under GATT in that case, and again in the case of the USA, for instance, they are steadily reducing, although from a fairly high level. I do not think I can go with my noble friend in saying that the USA and other developed countries outside the Community are in a special —I do not think she quite said unfair—position. In the case of the Americans, they do have the advantage of the exchange rate and the controlled energy and feedstocks supplies.
§ Lord GORONWY-ROBERTSMy Lords, will the Minister confirm that among the countries which impose no quotas or tariffs on textile imports from this country is Hong Kong, and that the Government of that country are actually in favour of the expansion of British exports to them? In view of the fact that Hong Kong is, I believe, next to the Soviet Union, the largest net importer of textiles, is the noble Viscount satisfied that our textile industry, which is in some difficulty, is availing itself of every opportunity to expand in this very large and thriving primary and secondary market in textiles?
§ Viscount TRENCHARDMy Lords, the noble Lord is quite correct in saying that Hong Kong is a major importer as well as a major exporter of textiles. In the main, the imports are of course to clothe the population of Hong Kong and the exports tend to be the higher added-value garments going abroad; and the 1265 majority of the imports, of course, come from her neighbour, China. So, while Hong Kong is a market, I do not think that the thesis that it is a huge export market for textiles from this country is entirely correct; but it is a very important market for many other areas.
Lord BARN BYMy Lords, while I thank the Minister for the very helpful and informative Answer which he gave originally to my noble friend's Question, may I ask him whether he will bear in mind the extreme distress of the wool textile industry? Will he also, as I am sure he does, bear in mind the very fine export performance which we are continuing to give in proportion to the total amount of exports from this country? Will he bear in mind that there is a widespread belief that the most important area from which difficulties arise for ourselves as members of the EEC is the merchandise which comes from the EEC, and can he see his way clear to exerting pressure to ensure the implementation of the regulations, which should be properly used, and to accelerate action under them, which ought to mitigate somewhat the big inflow from the EEC?
§ Viscount TRENCHARDMy Lords, we are aware of the difficulties of the wool textiles industry and, indeed, of many sections of the textile industry and clothing. We are also very aware of its very fine record in exports, right up to date. So far as the EEC is concerned, I think I have first to say to my noble friend that, as members of the EEC, there is of course not only nothing to object to but everything to be gained by free trade within that new market. Indeed, the growth of imports into this country from EEC sources is much greater than the growth of trade from the developing and cheap-cost countries. I think that perhaps I would refer the House to the textile debate which took place on 30th July in the other place, and to the statements of my right honourable friend the Secretary of State for Trade, and the Minister of State, which have covered all these questions in considerably more detail than it is probably possible to do by way of Answer to a Starred Question and to supplementary questions arising from it.