§ Mr. SpellarTo ask the President of the Board of Trade what assessment he has made of the effect of the creation of the north American free trade area on the ability of the United Kingdom to export(a) cars, (b) car components, (c) textiles, (d) yarn and fabrics and (e) financial services and insurance.
§ Mr. McLoughlinWhile the benefits of the North American Free Trade Agreement will, in the first instance. accrue to companies incorporated in the NAFTA area and goods which originate there, regional free trade agreements which meet the requirements of GATT also contribute to the liberalisation of world trade. My Department's initial assessment is that the NAFTA will both stimulate economic growth in the region and provide new export and investment opportunities for British companies. My Department is undertaking a more detailed analysis of the provisions of the NAFTA and the specific effects they might have on United Kingdom exports to the region.