South America: Trade Relations (Hansard, 10 April 1989)

§ Lord Strathclyde
My Lords, the Government attach great importance to our trade relations with Latin America. There have been six ministerial visits there since the beginning of last year. The Department of Trade and Industry's and our Embassies' services are available to companies wishing to trade in the region. The department also supports the Latin American Trade Advisory Group, which does very valuable work in promoting trade with the region. The Foreign and Commonwealth Office is arranging a seminar on Latin America at the end of May, at which leading businessmen will have the opportunity of meeting all our ambassadors from the Latin American countries.

§ Lord Molloy
My Lords, I thank the noble Lord for that reply which is encouraging. If the Question were the cause of all these wonderful things that the Government are going to do, I shall have to put down a few more.
Is the noble Lord aware that British trade and commercial undertakings feel that the apathy that has been shown by the Government in years past has proved very costly and has placed them at a disadvantage with their foreign competitors? Will the Government urge all those who wish to assist in developing trade with Latin America to continue to improve the situation for British commerce and industry?

§ Lord Strathclyde
My Lords, the UK market share has increased very slightly to 3 per cent. since the early 1980s. We shall continue to offer support for projects through the aid and trade provision to companies seeking to win contracts in the region.

Lord Bruce of Donington
My Lords, is the noble Lord aware that the prospects of the United Kingdom increasing its trade with South American countries depend very largely on the resolution of the various debt problems of these South American states? Will the noble Lord inform us of the nature and extent of his department's liaison with the Treasury on this question in its negotiations with the remainder of the G7 group, the International Monetary Fund, and the World Bank?
Will the noble Lord agree that the closest possible liaison between the DTI and the Treasury on this matter is an absolute imperative?

§ Lord Strathclyde
My Lords, there is naturally close liaison between the DTI and the Treasury on a whole host of matters including this one. The noble Lord said that one of the problems for this country exporting to Latin America was the debt crisis. He is quite correct there. The debt crisis has hit Latin America very hard. The Government a re seriously considering the debt proposals set out by the new 11 US Trade Secretary Brady concerning debt reduction in these countries.

§ Lord Hatch of Lusby
My Lords, the noble Lord has given the slight increase in market share. If he does not have the figures, can he let us know what the movement has been in trade between this country and Latin America in real terms over the past decade? When he is reading—perhaps he will be re-reading—the report of the Select Committee previously referred to perhaps he will note that there is a section that urges the British Government to increase their support for trade in the third world in contrast with the great deficit that we suffer in our trade with the European Common Market.

§ Lord Strathclyde
My Lords, we have a deficit of trade with South America. However, on the exact figures I shall certainly write to the noble Lord and let him know the exact figures.

§ Lord Taylor of Gryfe
My Lords, will the Minister accept that one of the impediments to increasing the flow of trade between this country and South America is the fact that the South American countries do not have sufficient foreign currency because the repayment of their existing debts is consuming all their available resources? Can he say whether or not this country is supportive of the Brady initiatives?

§ Lord Strathclyde
My Lords, as I said briefly earlier on, Her Majesty's Government are considering these proposals very carefully. We hope to come up with an answer to the proposals in due course.

§ Lord Molloy
My Lords, is the noble Lord aware that the Canning House advisers and the Latin American Trade Bureau are very conscious of the fact that there needs to be an improvement, in particular as we approach 1992? If there is not a massive improvement between British commercial undertakings and trade with Latin America so that we have a better chance of improving our position with foreign competitors, we shall be in a very serious situation in 1992.

§ Lord Strathclyde
My Lords, Canning House and the Latin American Trade Advisory Group are obviously in very close contact.
On 1992 and with regard to this Government, the position in no way implies a Fortress Europe situation. We hope that trade will continue to grow.