§ Mr. Pawseyasked the Secretary of State for Trade if, further to his reply of 3 December to the hon. Member for Rugby, indicating a growing adverse balance of payments, he will take steps to increase and extend tariffs against goods (a) from Japan and (b) from the United States of America.
§ Mr. ParkinsonNo. Any increase in tariffs would be a matter for the European Community, and a general increase in tariffs would be contrary to international obligations and would invite retaliation. Nor would tariff increases do anything to deal with the problems which lie behind our adverse trade balance. The Government are, however, prepared if necessary to take action against sudden surges of imports of particular products where these threaten disruption and loss of jobs.
§ Mr. Pawseyasked the Secretary of State for Trade if, further to his reply of 3 December to the hon. Member for Rugby, he will take steps to promote a "Buy British" campaign to underline the need to support home-based industries which are in danger of being undermined by foreign imports.
§ Mr. ParkinsonNo. The United Kingdom depends more than its major trading partners on the export of goods and services which account for about a third of GNP. This is why we support international obligations to keep markets open and non-discrimination. A "Buy British" campaign could backfire. The only lasting answer to import penetration is to improve our industrial performance.