§ Mr. Sumbergasked the Secretary of State for Trade and Industry (1) what action he is proposing to take to protect British export trade against the possible extension of higher United States duties or quotas on various European Community products including United Kingdom confectionery;
(2) if he will make a statement on the implications for the United Kingdom of the investigation being carried out 132W by the United States International Trade Commission into the desirability of extending United States quotas on sweetened cocoa powder to other chocolate and confectionery products.
§ Mr. ChannonIn January of this year the United States extended the scope of existing import restrictions on certain sugars and sugar-containing products. This was an interim measure, pending the outcome of an investigation by the US International Trade Commission of imports of products containing sugar. It provoked a sharp response from the United States' international trading partners, including the European Commission, within whose competence such matters lie. My right hon. Friend the Secretary of State for Trade and Industry took the opportunity of his visit to Washington last month to repeat these concerns. Subsequently, on 17 May, the US Government decided to lift some of the restrictions imposed in January with effect from 19 May.
Those of the new restrictions which remain in force after 19 May are of limited concern to United Kingdom exporters, though the Government consider them to be without justification. But among other products under consideration by the ITC are a number in which we have a substantial export trade to the United States, in particular sugar confectionery, chocolate confectionery and preserves and marmalades. This trade could be seriously affected by the imposition of quota restrictions or increases in duties. We, and our European Community partners, will be urging the US Government not to give in to domestic protectionist pressures but to adhere to the commitment given at last month's Bonn economic summit on the avoidance of protectionism.