§ Mr. Dykesasked the Secretary of State for Trade and industry whether he will make a statement about import duties in 1974.
§ Sir G. HoweTwo orders made under the Import Duties Act 1958 were laid before the House today establishing the main protective import duty rates effective from 1st January 1974. These orders implement our part in the second stage of creating the customs union of the enlarged European Community. This further move towards free access to a single Community market affords major opportunities to our exporters. They can now plan on the basis of a completely open market of 200 million by 1st July 1977.
Duties on industrial goods traded between the United Kingdom and the original Community were reduced by an initial 20 per cent. in April. They will be reduced by a further 20 per cent. on 1st January so that they will be down on 509W both sides to 60 per cent. of their original level. For a few special goods duties are removed altogether. The first 20 per cent. cut in duties on horticultural produce will also be made.
Duty-free treatment of Irish and Danish goods is, of course, retained, as is almost in its entirety that of goods from EFTA countries.
Other provisions in the orders include the maintenance of present United Kingdom duty treatment for the goods of the "associable" Commonwealth and making the first move towards the common customs tariff in respect of goods not subject to special arrangements.
Further statutory instruments establishing other rates of duty—for example, in respect of revenue duties and preferential rates applicable to goods from certain sources—will be made before the end of the year, as will regulations making some necessary changes in the origin requirements to qualify for preferential tariff treatment.
The enlarged Community's GSP arrangements will replace our own which expire at the end of the year. The details will be published as soon as possible.