HL Deb 03 December 1996 vol 576 cc579-81

2.58 p.m.

Viscount Montgomery of Alamein asked Her Majesty's Government:

Whether they are satisfied that the proposed European Union initiative to counteract the adverse effects on international trade of the Helms-Burton Act is adequate.

Baroness Miller of Hendon

My Lords, Her Majesty's Government have been working closely with their European partners to create a firm and effective response to the United States' Helms-Burton legislation which will protect our companies and trading interest. Her Majesty's Government believe that the current EU initiatives will provide a strong response to the US legislation and help to counteract adverse effects on international trade arising from Helms-Burton.

Viscount Montgomery of Alamein

My Lords, the Minister's Answer is quite encouraging. Can my noble friend ensure that the UK delegate and other EU colleagues who attend the WTO Summit in Singapore next week make the strongest possible objections to this extra-territorial legislation which runs totally contrary to the whole concept of improved world free trade?

Baroness Miller of Hendon

My Lords, we will be reaffirming with other countries in the WTO the primacy of the multilateral trade system and the rules on which it is based. We will be looking to ensure that the United Kingdom's objectives are reflected in the new work programme of the World Trade Organisation. The substance of the dispute settlement case will not be raised because that is subject to separate confidential procedures.

Lord Peston

My Lords, the noble Viscount is right that this is a disgraceful infringement of all that has happened with free trade in the 50 years since the war ended. It is most alarming that the USA, the country which took the lead in that, should be the one that now damages it in this way. Does the so-called EU initiative involve any sanctions against the USA if it proceeds, because as I understand it the USA is not backing down in any way? That means that it will damage some of our companies. Is it not time for us at least to intimate that we might act in a way that could damage one or two of its companies if it proceeds in that way?

Baroness Miller of Hendon

My Lords, the current initiatives about which I was talking include the recent announcement of the WTO dispute settlement panel, a European Community regulation, and joint action designed to counter the extra-territorial application of the legislation. The EC regulation is fairly tough, and I hope that the noble Lord will be satisfied. It obliges individuals and companies to inform the European Commission if their financial and economic interests are directly or indirectly affected by the operation of specified pieces of US legislation, which includes the Helms-Burton Act. There are other points to it, but that should reassure the noble Lord that we are doing all that is possible.

Baroness Young

My Lords, does my noble friend agree that now the American elections are behind us there might be an opportunity once again to raise directly with the American Government our very real concern, which is felt in all parts of the House, about the terrible effects that Helms-Burton is having, not just because of its extra-territorial aspects but because of its effects on individuals in Cuba itself?

Baroness Miller of Hendon

My Lords, I am pleased to be able to tell my noble friend that we shall continue to make representations to the US Administration and Congress about the Helms-Burton Act, with the aim of having the Act repealed. In the shorter term, we shall be seeking a renewal of the suspension of the right to bring private cases under Title 3 of the Helms-Burton Act.

Lord Wright of Richmond

My Lords, is the Minister aware that there were 10 senators, no less than one tenth of the US Senate, in London two weeks ago? Was the opportunity taken to impress upon them the views of Her Majesty's Government about extra-territoriality and the Helms-Burton Act?

Baroness Miller of Hendon

My Lords, I am not sure whether that opportunity was taken. The last time I answered the noble Lord on this question I am afraid that I said that as I was not sure it was not appropriate to give him an answer. I shall find out. I shall write to the noble Lord and put a copy of the letter in the Library for all other interested noble Lords.

Lord Williams of Mostyn

My Lords, is it the Government's view that the Helms-Burton Act is or is not lawful under international law?

Baroness Miller of Hendon

My Lords, we very much hope that the panel will find that the US action is inconsistent with her obligations under international trade rules. The case is complex and that is the very best answer I can give at this time.

Viscount Waverley

My Lords, is the Minister aware of the depth of opinion against the approach of the United States by all Latin and Caribbean states, including Mexico and Canada?

Baroness Miller of Hendon

My Lords, yes, and I am aware of the feeling of this House.

Lord Taylor of Gryfe

My Lords, while I agree with all that has been said this afternoon, have any representations been made to Fidel Castro to improve his human rights record, which might enable us to make considerable progress in abolishing this undesirable Act?

Baroness Miller of Hendon

My Lords, we are doing our very best to ensure that the Cuban position on human rights, and everything in that order, is done. This country and Europe believe that continuing with trade and relations is the best way to ensure that human rights eventually prevail in Cuba.