EC Trade with the United States (Hansard, 24 February 1993)

§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Baroness Denton of Wakefield)
My Lords, my right honourable friend the Prime Minister is raising trade issues with President Clinton today in Washington. We will continue to work within the European Community to avert trade disputes with the United States.

Lord Campbell of Croy
My Lords, I am grateful to my noble friend for her reply. Sir Leon Brittan, and now the Prime Minister, are clearly doing their best to prevent an outbreak of protectionism. Although the United States has been accused of discrimination with its Buy American Act, why is it necessary for EC members to require their government-owned utilities to favour EC products? This appears to invite retaliation.

§ Baroness Denton of Wakefield
My Lords, I am pleased to tell my noble friend that while the utilities directive contains some limited discriminatory provisions it is essentially a market opening measure and gives US firms opportunities in Europe which they have not had before. British companies bidding for contracts in the US, on the other hand, continue to face the iniquities of the Buy American Act.

§ Lord Eatwell
My Lords, does the Minister agree that the issues raised by the current trade differences between the United States and the European Community are properly a matter for the present GATT Round? Does she accept that the optimism which she expressed on 25th January about the rapid conclusion of the GATT talks was entirely misplaced and that the 1st March deadline for fast-track ratification by the US Congress is not now likely to be met? Can she tell the House whether the Prime Minister in his meetings with President Clinton is attempting to secure an extension of that deadline?

§ Baroness Denton of Wakefield
My Lords, I believe that I share the disappointment of everyone in your Lordships' House that the GATT agreement has not been signed. On the other hand, I do not believe that optimism in this area is wrong because it is so important that the agreement is signed. Everyone, I understand, agrees with that. I am pleased to say that President Clinton has indicated that he will be looking 214 for an extension of the fast track. What my right honourable friend the Prime Minister will be pushing for today is that this should be as short a period as possible.

§ Lord Mackay of Ardbrecknish
My Lords, my noble friend's statement is welcome and indeed I am sure that we all wish the Prime Minister well in negotiating on trade matters with President Clinton. However, I wonder whether she will also consider the negotiations that are needed within the European Community itself to reduce the hindrance to trade that we have seen from the French in the past two or three days.

§ Baroness Denton of Wakefield
My Lords, I understand that that is a sympathetic question in your Lordships' House but I am amazed that my geography is rather better than my noble friend's. We are talking about North America on this occasion.

Lord Bruce of Donington
My Lords, I agree with the noble Baroness that we are talking about North America, but North America is part of the world as a whole. Does she not agree that, irrespective of the results of the conversation of her right honourable friend the Prime Minister with President Clinton, the real nigger in the woodpile is France, as indicated by her noble friend? Will she see to it that the obstacles to GATT that are put up by France are removed without delay?

§ Baroness Denton of Wakefield
My Lords, I am pleased that my right honourable friend is meeting President Clinton today. No one could be more committed to ensuring that the GATT agreement is signed. As President of the European Community, a great deal of the Prime Minister's energies were directed to ensuring that the members of the European Community were working together. We have a great advantage in that the negotiating Commissioner is now Sir Leon Brittan, who will make quite certain that agreements are held to.

Lord Bruce of Donington
My Lords, I hope the noble Baroness is right.

Lord Campbell of Croy
My Lords, my noble friend has explained that the EC utilities directive should help American firms. Can more be done to spread that information among business and industry in the United States?

§ Baroness Denton of Wakefield
My Lords, I am pleased to tell my noble friend that, in recognising North America's importance to the UK and in reporting an increase in exports last year, we at the DTI are planning a three-year North America trade promotion campaign in which we aim to increase United Kingdom companies' awareness of, and help prepare them for, the great opportunities that exist for trade with North America.