§ Jane GriffithsTo ask the Secretary of State for Trade and Industry (1) if he will compensate Cornflower Fine Art Publishers of Reading for the increase in their export 599W costs to the United States as a result of the increase in United States import tariffs; and if he will make a statement; [76778]
(2) what assessment he has made on the loss of revenue to Kew Gardens as a result of the increase in United States import duties; and if he will make a statement. [76776]
§ Mr. Wilson[holding answers 15 March 1999]: My right hon. Friend the Secretary of State announced on 4 March 1999, Official Report, columns 1223–29, that the Government had decided to establish a scheme for the cashmere knitwear industry to guarantee the bonds requested by the United States. The mere threat of US action had been having a particularly significant effect on cashmere, in view of the highly seasonal nature of that industry. The precise details and scope of the bond scheme have still to be decided.
The Government are very aware of the effect that the US action may have not only on the various industry sectors targeted by the US (including lithographs), but also on the possible implications for others in the UK involved with those sectors.
§ Jane GriffithsTo ask the Secretary of State for Trade and Industry what discussions he has had with the United States Government on a resolution of the present dispute over United States increased import tariffs; and if he will make a statement. [76783]
§ Mr. Wilson[holding answer 15 March 1999]: It is of course the European Commission that acts for the European Union on this matter. The UK Government have also discussed this with the US Administration at every level. We have repeatedly made clear our desire to see the dispute resolved within the WTO framework. We have stressed that US retaliatory action will do nothing to resolve the underlying dispute, which is about the compatibility with WTO rules of the EU' s revised bananas regime. We have urged the US to abide by the WTO process currently under way, which offers the best prospect for a resolution of this dispute.
§ Jane GriffithsTo ask the Secretary of State for Trade and Industry if he will estimate(a) how many United Kingdom companies will incur increased export costs as a result of the increase in United States import tariffs, (b) how many companies Her Majesty's Government have compensated for the increase in their export costs, (c) the cost to public funds of this compensation, (d) the nature of the exports of each company and (e) the cost to United Kingdom businesses of the increase in United States import duties. [76782]
§ Mr. Wilson[holding answer 15 March 1999]: Against the background of historical levels of exports in each sector, it is not possible to say what the overall impact might be. Much will depend on how long any retaliatory measures remain in place, the ability of the affected firms to find alternative customers and local labour market conditions. The precise details of the bond scheme announced by the Government on 4 March 1999, Official Report, columns 1223–29, have still to be decided. No companies have therefore been compensated so far. The sectors affected by the US action are: cashmere sweaters; batteries; plastics; biscuits; bath oils; candles; lithographs; bed linen; cartons; coffee makers; wallets; handbags; cheese; and felt paper.
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