HL Deb 06 July 1992 vol 538 cc982-3

3.2 p.m.

Lord Jay asked Her Majesty's Government:

Whether they can now report any progress in the GATT Uruguay Round negotiations.

The Parliamentary Under-Secretary of State, Department of Trade and Industry (Baroness Denton of Wakefield)

My Lords, talks are continuing between the United States and the European Community to try to resolve their remaining differences. The Prime Minister is currently attending the G7 Summit in Munich, at which I am sure the Uruguay Round will be discussed.

Lord Jay

My Lords, since huge issues hang on this matter and since serious reform of the common agricultural policy is now, at long last, on offer, can the Minister say clearly what is holding up the settlement? Is it, as has been reported, because the EC Commission has failed to formulate its views on time or are the Americans asking too much? What are the British Government doing?

Baroness Denton of Wakefield

My Lords, I can do no better than quote my right honourable friend the Prime Minister who this weekend said that it was an imperative that settlement be made for political, economic and humanitarian reasons. I believe that we should acknowledge that the Commission has taken some hard decisions on agriculture and that others too need to compromise.

Lord Bruce of Donington

My Lords, is the Minister aware that although the CAP ostensibly has been reformed, there is one item within it which remains open to contention and which is a stumbling block to the conclusion of the GATT? Will she confirm that that is the as yet unspecified special arrangements that have to be made in relation to French farmers?

Baroness Denton of Wakefield

My Lords, we all appreciate that the French President is in a difficult position. I understand that President Mitterrand and President Bush had dinner together yesterday and the discussions are continuing on a very close basis. No one doubts the importance of the settlement.

Lord Clinton-Davis

My Lords, does the noble Baroness agree that the faults do not all lie on one side so far as concerns the Europeans and the Americans? Is she aware that the Americans continue to support their own agricultural industry and deny many members of the European Community the right to offer services, not least in relation to coastal shipping? What initiative does the United Kingdom presidency propose to take to break the present impasse?

Baroness Denton of Wakefield

My Lords, as I said, during the UK presidency and at all other times the Government will support the Commission in endeavouring to break the impasse. We must look to the US to resist pressure to remove key sectors from the services agreement. This is not something on the table right at this moment.

Lord Jay

My Lords, however difficult the position of the presidents, is it worth while for all the heads of government and heads of state to meet together at vast expense if they cannot take decisions as well as talk?

Baroness Denton of Wakefield

My Lords, people have to meet to take decisions, and to meet at the highest level would seem to be most appropriate.