HC Deb 19 December 1984 vol 70 cc251-2W
Mr. Speed

asked the Secretary of Trade and Industry if he will make a statement about new Government initiatives to introduce fair competition and an equalisation of tariffs in the motor vehicle exports to, and imports from, Spain.

Mr. Channon

[pursuant to his reply, 12 November 1984, c. 86]: I can inform my hon. Friend that an agreement was reached between the Community and Spain on industrial tariffs at the ministerial meeting on 18 December. Duties in trade between the United Kingdom and Spain will be eliminated seven years after accession. Tariffs will be dismantled in both directions (on the assumption that accession takes place on 1 January 1986 as planned) as follows:

Percentage
1 March 1986 10
1 January 1987 12.5
1 January 1988 15
1 January 1989 15
1 January 1990 12.5
1 January 1991 12.5
1 January 1992 12.5
1 January 1993 10

This means that three years after accession, Spain's highly protective duties on industrial products will have been more than halved.

This system will apply to all duties, including that on cars. There will, however, be in addition a reduced duty quota for cars from the EC of 32,000 in 1986, 36,000 in 1987 and 40,000 in 1988. These figures include a reserve of 4,000 cars, 2,000 of which will be specifically allocated to the United Kingdom for use in respect of cars of any capacity. The remainder of the quota will be available for all. Given that the United Kingdom has 15 per cent. of the existing car quotas, the Government are confident that, taking the two elements together, the total United Kingdom share of the quota will be around 5,000 in year one, rising appreciably thereafter. The duty rate for the quota will be 17.4 per cent. compared with a weighed average of 23 per cent. under the existing quota.

The Government believe that this settlement offers United Kingdom manufacturers, both of cars and of other products, major new opportunities in the Spanish market.

Quite separately, I am hopeful that the Spanish Government will make interim improvements to existing quotas for the period 1 July to 31 December 1985. These should yield an increase of about 50 per cent. (on an annualised basis) on existing United Kingdom quota allocation.