§ Mr. Teddy Taylorasked the Minister for Trade (1) if he will make a statement outlining the principles of the arrangement reached between the European Community Commission and the Japanese representatives on voluntary restraint of sales of Japanese video cassette recorders;
256W(2) if the voluntary arrangements between the European Community and Japan on video recorder sales covers video cassette recorders produced in Europe by Japanese firms as well as video cassette recorders produced in Japan;
(3) what effect he considers the arrangement between the European Community and Japan over video cassette recorder imports will have on Japanese investment in this field of manufacturing activity with the European Community;
(4) what assessment he has made of the effect of the arrangement between the European Community and Japan over video cassette recorder imports on the price of video cassette recorders in Europe.
§ Mr. Peter Rees[pursuant to his reply, 24 February 1983, c. 489]: The Foreign Affairs Council has endorsed the agreement reached between the Commission and the Japanese Government on moderation in exports to the Community of video tape recorders and certain other industrial products. The Japanese have agreed to restrain exports of VTRs for three years. In 1983 the ceiling—including kits—will be 4.55 million, leaving room for Community manufacturers to sell at least 1.2 million units. The Commission has assured us that the requirements for kits of ventures in the United Kingdom should be fully met. The Japanese authorities will be setting an export floor price, intended to increase the price of finished Japanese VTRs, which should help to establish a viable industry in the Community. Further talks will be taking place on detailed points.