§ Mr. Hugh Jenkinsasked the Secretary of State for Trade to what factors he ascribes the increase in the United Kingdom's deficit with the EEC from £538 million in 1972 to £2,153 million in 1976; and if he will make a statement.
§ Mr. MeacherThe deterioration in our external trade deficit with the EEC since 1972 has been caused by many factors. By far the most important has been the increase over the period in the cost of our imports of foodstuffs from the eight, largely as a result of switching of our sources of supply after entry to the EEC in 1973. There has also been an adverse movements in the balance of trade in semi- and finished manufactured goods. Although the deficit is still too large there has been some reduction since the third quarter of last year as a strong growth in our exports to the EEC has developed.