§ Dr. StarkeyTo ask the Secretary of State for Trade and Industry if the selective elimination and reduction of import duties on products imported into the UK under EU preferences enables eligible third country producers to benefit from a combination of stronger export pricing power, larger export sales and increased competitiveness in EU markets relative to third country producers that are not eligible to participate in EU preferences. [133709]
§ Mr. CabornIncreased preferences will benefit those third country producers eligible to receive them. Those producers overall should experience larger export sales and/or higher returns on exports, as a result of their increased competitiveness in the EU market.
A reduction in the normal level (i.e. MFN) of import duties lessens the value of preferential tariffs offered by the EC. In products where preferences are offered, their erosion tends to weaken and not strengthen the export pricing power of exporters receiving preferences compared with those who do not. Against this, however, the elimination or steady reduction of import duties in general improves the market access of those receiving preferences and offers scope for expansion of exports in other products.
§ Dr. StarkeyTo ask the Secretary of State for Trade and Industry if third country exporters and producers are expected to derive benefit from their participation in the import preferences granted their products under the EU's preferential trade-related agreements. [133708]
§ Mr. CabornThird country exporters and producers granted trade preferences are expected to benefit from them through increased exports to the EU.
A general reduction in import duties would reduce the value of trade preference. However, developing countries could benefit from the general reduction of tariffs in sectors where they have particular comparative cost advantage.