§ Mr. Nicholas Wintertonasked the Minister for Trade what assessment he has made of the implications of the decision of the governors of the Bank of Portugal to raise the present 10 per cent. import surcharge and 30 per cent. on all imported goods with effect from 1 February 1983 (a) for British trade with Portugal and (b) the terms of the current multi-fibre arrangement; and if he will make a statement.
§ Mr. SproatNo precise assessment is possible, but we are concerned that the surcharge should be reduced again as soon as possible, and are making representations to this effect. The recent increase, back up to the 30 per cent. level at which it was introduced in 1975, applies to a wide variety of imports of products from all sources. It has been justified under the terms of article 31 of the 1972 trade agreement by reference to Portugal's sharply deteriorated balance of payments.
There is no effect on the multi-fibre arrangement, which is not applied to trade between the Community and Portugal. There are indeed no quantitative restrictions on Community textile exports to Portugal.