HL Deb 04 February 1988 vol 492 cc1185-7

3.9 p.m.

Lord Mottistone

My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government what steps they are taking to persuade the Japanese to reduce their high import duty of 35 per cent. on sugar confectionery.

Lord Beaverbrook

My Lords, we shall be pressing in the Uruguay round of multilateral trade negotiations for reductions in levels of tariffs, including the Japanese duty on sugar confectionery. Meanwhile, we are taking appropriate opportunities to remind the Japanese Government that we regard the level of the duty as excessive.

Lord Mottistone

My Lords, can my noble friend tell the House what sort of level the Government will propose for the tax?

Lord Beaverbrook

My Lords, we regard an acceptable level to be one which compares favourably with the EC tariff on such products. Of course ultimately we should like to see no tariffs whatsoever.

Lord Molloy

My Lords, is the Minister aware that this question goes very far beyond the matter of confectionery? It concerns the appalling arrogance of the Japanese Government, who will in no way listen to the appeals of the United States of America, our allies, or the British Government. Is it not about time that a British Government and a United States Government made joint representations to the Japanese and asked them whether they will make every endeavour to be honest and truthful?

Lord Beaverbrook

My Lords, there are areas where barriers to UK exports still exist, and we tackle them. However, UK exports were well up last year; an increase of 25 per cent. over the previous year. I think that all Members of your Lordships' House would wish to welcome that achievement by British exporters.

Lord Molloy

My Lords, it is very hard to get that tiny concession from the Japanese. It is about time that the Americans and the British asserted themselves and the dignity of both nations.

Noble Lords

Order!

Lord Campbell of Croy

My Lords, will the Government also bear in mind another kind of confection which is in liquid form, which comes from Scotland and which at the present time is discriminated against by Japanese taxation?

Lord Beaverbrook

My Lords, yes. My noble friend answered a Question on this point last Monday.

Lord Williams of Elvel

My Lords, the noble Lord was kind enough to say that the Government make representations directly to the Japanese Government on this and other trade matters. Does he agree that representations have been made by successive British Governments and successive trade Ministers to the Japanese and that the result is not exactly what we might have hoped for? Can he point to any particular successes that these direct approaches have achieved?

Lord Beaverbrook

My Lords, I think that it is very important that all possible avenues are explored in order to reduce tariffs against British exporters. However, we feel that Japan is very unlikely to make any concessions outside the GATT. But my noble friend the Secretary of State will have a further opportunity to raise the issue during his visit later this year. I welcome that initiative and hope that he has every success.

Lord Mellish

My Lords, it seems that it was only the other day when we were fighting that lot. Will the Minister be good enough to explain why we do not impose tariffs on their exports when they come to us?

Lord Beaverbrook

My Lords, we fought for a free world and we still fight for free trade.

Lord Mottistone

My Lords, can my noble friend perhaps enlarge a little on that response? Is he aware that I managed to persuade the Japanese to reduce their tariffs on chocolates and biscuits in 1982 but they would not do so on sugar confectionery? Is he also aware that I sought to persuade them at that time that the right level of tax should be the one that we put on Japanese motor cars and other such goods, namely around 5 per cent.? Can he say whether the Government have in mind that kind of figure?

Lord Beaverbrook

My Lords, yes, I am aware of my noble friend's efforts in this regard. I said a little earlier that we should certainly not wish to see any higher tariff than that imposed by the EC on Japanese goods of that nature.