Mr. Bob Brownasked the Secretary of State for Trade and Industry what steps he intends to take to remedy the worsening balance of trade between Japan and the United Kingdom since Japanese exports to the United Kingdom are increasing six fold over United Kingdom exports to Japan.
§ Mr. Anthony GrantUnited Kingdom imports from Japan in 1971 increased by approximately 50 per cent, over 1970—from £134 million to £201 million c.i.f.—compared with an increase of approximately 6 per cent.—from £148 million to £157 million f.o.b.—in United Kingdom exports to Japan. Previously visible trade between the two countries had been broadly in balance, with a surplus in our favour in 1969 and 1970. The revaluation of the yen last December and the expected recovery of the Japanese economy from a96W period of comparative stagnation should remove two main causes of this new trend. One of the more important tasks of the British Overseas Trade Board will be to seek ways of reinforcing the efforts of British exporters in this prosperous and rapidly growing market.
Mr. Bob Brownasked the Secretary of State for Trade and Industry what information the Confederation of British Industry has supplied to him about its recent talks with the Keidanren regarding Japanese-United Kingdom trade; and if he will make a statement.
§ Mr. Anthony GrantThe Department has been in close touch with the C.B.I. following the confederation's talks with the Keidanren in both London and Brussels in October, 1971. I understand that the C.B.I. stressed the need for adequate access to the Japanese market through investment and exports and considered with interest the Keidanren proposals, which will be discussed in detail in the coming months, for forestalling any rapid and disruptive build-up of Japanese sales in the British and other markets. I attach great importance to the harmonious development of two-way trade with Japan and am following these important talks with keen interest.