GATT: Uruguay Round (Hansard, 9 May 1991)

§ The Minister of State, Department of Trade and Industry (Lord Hesketh)
My Lords, the Government 1200 greatly welcome the resumption of negotiations in the Uruguay Round. We are continuing, with our European Community partners, to work to resolve all outstanding issues as soon as possible. We are also encouraging a flexible, constructive approach by other participants in the negotiations. We should like to see all parties commit themselves to concluding the round by the end of this year at the latest.

§ Lord Jay
My Lords, the Uruguay Round is the best chance we are likely to have for a long time to achieve drastic reform of the common agricultural policy, which is becoming more expensive than ever. Why does our own Minister of Agriculture make speeches that sound even more protectionist than the agricultural commissioner in Brussels?

§ Lord Hesketh
My Lords, in the absence of a more specific question from the noble Lord, Lord Jay, I suggest that his inference may be wide of the Question on the Order Paper. However, it is important to remember that these negotiations are being handled not by the Ministry of Agriculture but by the Commission.

§ Lord Thorneycroft
My Lords, does the noble Lord agree that the Question asked by the noble Lord, Lord Jay, is probably the most important of a European nature that could be raised at present? I sometimes think that it is the least discussed. Success in these talks is absolutely vital to world trade. Will he use every effort to secure with our partners a successful outcome to the discussions?

§ Lord Hesketh
My Lords, it is perfectly true that the prosperity of this country and every country in Europe and the world depends demonstrably, and has been seen to depend, on successive GATT rounds in the past 40 years. It is also true that the common agricultural policy is one of the great issues involved. It is worth remembering that the Commission has agreed to negotiate on specific binding commitments in three areas of internal support within the CAP. Those three areas are: market access, export competition and internal support.

§ Lord Stoddart of Swindon
My Lords, are not the European Commission and the common agricultural policy seen as the greatest obstacles to obtaining agreement on the Uruguay Round? Unless that can be resolved, the implications for our friendship and trade with America and the rest of the world will be very serious indeed. Under those circumstances, will Her Majesty's Government make sure that they protect our interests and press the European Commission to reach a proper agreement and make proper concessions within the Uruguay Round?

§ Lord Hesketh
My Lords, it comes as no surprise to hear the noble Lord's belief that the common agricultural policy is the greatest influence. It is true that there are other influences outside Europe which are obstacles in the negotiations. I shall certainly draw the attention of my honourable and right honourable friends to the noble Lord's remarks.

§ Lord Renton
My Lords, do my noble friend's replies this afternoon mean that the EC position remains as agreed at the last meeting of the agriculture ministers, or is there still some flexibility left in negotiation?

§ Lord Hesketh,
My Lords, the negotiations go far beyond those discussions. They take place in the context of the Commission, rather than the agriculture ministers, negotiating on an individual, country-by-country basis within the Community.

§ Lord Monson
My Lords, does the noble Lord agree that, as 1992 is election year in the United States, to delay the conclusion of these talks until the end of 1991 is to leave matters dangerously late?

§ Lord Hesketh
My Lords, that is absolutely correct. The Government believe that the extension of the fast-track process would not be of particular advantage if that timescale goes beyond the presidential election in the United States. That is why the poi it made by the noble Lord is correct.

§ Lord Williams of Elvel
My Lords, is the noble Lord aware how much we welcome the intervention of the noble Lord, Lord Thorneycroft, and how much we, from these Benches, agree with the thoughts that he expressed? Will the Minister assure the House that the Commission takes seriously the agricultural plan put forward by the Swedish agriculture minister, Mr. Hellstrom? It seemed at one point about a month ago to offer a way out of this difficult dilemma.

§ Lord Hesketh
My Lords, there are two concepts in this mailer. One is the internal European concept; the other is the relationship between the Community and the GATT. The Swedish suggestions are no doubt useful, but at the end of the day they must be recognised as being acceptable within Europe.

§ Viscount Montgomery of Alamein
My Lords, following what the noble Lord, Lord Williams of Elvel, said, is my noble friend aware that the countries of Latin America are struggling to recover from a heavy debt burden? They are severely prejudiced by the lack of a conclusion to the current round. This round should be designed to give greater access to tropical agricultural products and allow those countries to compete on level terms.

§ Lord Hesketh
My Lords, I am well aware of the point that the noble Viscount makes. It is also an example of the perceptions of other groups from other areas of their access or lack of access, as they see it, to world a ad individual markets.

§ Lord Hatch of Lusby
My Lords, following the question of the noble Viscount, Lord Montgomery, can the Minister tell the House to what extent the British Government, in engaging in these negotiations, take into account the fears in the developing world that the result of the negotiations may well be to their detriment? It may result in raising protection against their exports. For example, are the British Government using the ODA? Is the Minister for the ODA, together with the Treasury team, engaged in these negotiations?

§ Lord Hesketh
My Lords, as I pointed out earlier, the negotiations are being conducted by the Commission.

§ Lord Elton
My Lords, will my noble friend ask his right honourable friends to convince their colleagues in the rest of Europe that any collective satisfaction they may feel from gaining a Community point will be as nothing to the damage that will be collectively sustained if it results in the failure of the talks?

§ Lord Hesketh
My Lords, my noble friend is absolutely right to make that point. I shall report it and carry it through.

§ Lord John-Mackie
My Lords, does the Minister agree that, in a world where millions of people are starving, tampering with agricultural production will need to be carried out very carefully indeed?

§ Lord Hesketh
My Lords, it is absolutely true that the thoughts of Her Majesty's Government are on successfully sustaining agriculture in this country at the same time as achieving reform and prosperity.

§ Lord Whaddon
My Lords, will the noble Lord bear in mind that the whole democratisation of Eastern Europe may be prejudiced if those countries do not have access to the rest of the world?

§ Lord Hesketh
My Lords, I shall certainly draw my right honourable friend's attention to that remark.