§ Mr. Woolmerasked the Secretary of State for Trade whether he consulted the industry associations in the United Kingdom on the European Commission's proposal on national shares of textile imports dated 10 August 1979, prior to its approval on 18 September; and what account he took of those views.
§ Mr. NottThe industry was aware of these proposals, and full account of its interests was taken in the discussions within the European Community.
§ Mr. Woolmerasked the Secretary of State for Trade how many investigations into alleged subsidised, unfair or illegal trade practices in textiles and clothing products have been initiatedby his Department and the European Commission since 1 January 1978; and if he will take steps with the European Commission to ensure that they are completed as quickly as possible.
§ Mr. EyreI refer the hon. Member to the reply which my hon. Friend gave him on 30 November 1979. There are, in addition, two dumping investigations which have not yet been fully completed by the Commission. These concern acrylic fibre from the United States of America, Japan, Spain, Turkey and Greece, opened in June 1979, and cotton yarn from Turkey, opened in August 1979. Only the individual investigations against Spain, Turkey and Greece on acrylic fibre have so far been terminated. The Commission is well aware of the need to complete investigations quickly.
§ Mr. Woolmerasked the Secretary of State for Trade what has been the extent of outward processed trade in each of the Community member States since 1973 in the various product categories of the multi-fibre arrangement; if he will give details as to the present stage of the discussions within the European Commission on the outward processing discussion document; and when he expects it to be approved.
§ Mr. NottAs regards the first part of the question, I regret that this information is not available. As regards the proposed outward processing regulation,400W I refer the hon. Member to the reply which the Minister for Trade gave to my hon. Friend the Member for Sowerby (Mr. Thompson) on 30 January.—[Vol. 977, c. 667–78.]
§ Mr. Woolmerasked the Secretary of State for Trade what progress has been made by either the Commission or the Government in developing a code of practice for textiles trade in advance of the renegotiation of the multi-fibre arrangement in 1980–81; and if this will include greater reciprocity in international textiles trade, such as in the field of tariff harmonisation.
§ Mr. Woolmerasked the Secretary of State for Trade whether he is satisfied that the quota limits and rules of origin for textile products are being applied equally forcefully to all such products; and if he considers that there is an adequate number of staff both in his Department and the Commission to implement the rules effectively.
§ Mr. NottYes. I am satisfied that the provisions of the relevant European Community regulations with regard to origin rules are being enforced, that quota limits are being adhered to and that staffing levels both in my Department and in the Commission are adequate for this purpose.
§ Mr. Woolmerasked the Secretary of State for Trade what consideration he has given to establishing a suitable trade agreement in textiles and clothing products with China, which will include safeguard clauses, effective anti-dumping mechanisms, and a very low rate of increase in textiles imports linked to consumer spending on such goods in the United Kingdom; and if he will seek to include China among the signatories to the multi-fibre arrangement in the negotiations in 1980–81.
§ Mr. NottA bilateral agreement between the EEC and China on trade in textiles and clothing was initialled on 18 July 1979 and will be effective until 31 December 1983. Although China is not a signatory to the MFA, the agreement contains similar provisions, including 401W safeguards and growth rates, to those made by the Community with other low-cost suppliers who have signed. Dumping is not covered by the MFA.
§ Mr. Woolmerasked the Secretary of State for Trade if he will request the European Commission to amend the code on the dumping of textile goods so that the importer of textiles and clothing goods would be legally required to give information, requested in the Commission's questionnaire issued to domestic industry associations, which only the importer would know, and that he should do so within two weeks of notification, or otherwise countervailing action would be immediately instituted.
§ Mr. EyreNo. The appropriate EEC regulation, which came into force on 1 January 1980, reflects the provisions of the GATT anti-dumping code, which was revised last year during the multilateral trade negotiations. The questionnaire used by the Commission makes it clear that it is designed simply to establish whether there are prima facie grounds for opening an anti-dumping investigation and that it need not be completed in its entirely. Once an investigation has been opened, the regulation requires exporters and importers of the goods concerned to supply full information relevant to the anti-dumping complaint.
§ Mr. Woolmerasked the Secretary of State for Trade what progress has been made by the European Commission on adopting the EEC code on subsidies and countervailing measures, regulation EEC 459/68, in the light of the conclusion of the GATT multilateral trade negotiations (Tokyo round) and the Commission's expressed views in its final report, COM(79) 514 final, issued on 8 October 1979; and what views he has conveyed to the Commission on the need for effective action on European subsidies to textile industries and the Community and their effect on competition.
§ Mr. NottCouncil regulation (EEC) No. 3017/79, which came into force on 1 January 1980, has replaced regulation (EEC) No. 459/68 as amended. The new regulation brings the Community's rules into alignment with the 1979 GATT agreements on anti-dumping and on subsidies and countervailing measures.
402WAs to subsidies given to European textile industries some State aids used for rationalizing or restructuring industry are of course compatible with the Treaty of Rome. But where we have evidence of the existence of aids which are not compatible with the Treaty and which are distorting competition we shall press the Commission to take appropriate action to bring them to an end.
§ Mr. Woolmerasked the Secretary of State for Trade what is the current exercise on non-tariff barriers being carried out by the Government and the European Commissions; what is its proposed completion date; and if it will be considering non-tariff barriers, other than technical standards, such as enforced customs delays by other EEC member States.
§ Mr. NottThe United Kingdom, together with other member States and the European Commission, is at present studying the role of standards and certification procedures in intra-Community trade. This exercise is limited to technical barriers to trade and is not concerned with other non-tariff barriers that may exist. On standards, new machinery is being set up to secure and monitor an improved output of European standards. On certification procedures, a working group is presently examining the problems facing manufacturers in this area with a view to proposing remedies. The report of the working group is expected by mid-summer. Some 400 trade associations in the United Kingdom have been invited to provide details of problems facing British manufacturers in exporting their products to other member States.
§ Mr. Woolmerasked the Secretary of State for Trade what details he has received about the American Government's scheme to assist the textiles industries; if he will place a copy in the Library; and if he will give his estimate of the effects of the scheme on international trade.
§ Mr. EyreI presume that the hon. Member has in mind the so-called textile programme which the United States Administration announced in March of last year. A copy of the programme has been placed in the Library. In terms of its practical application, I believe its effects on international trade 403W in textiles will not have been greatly dissimilar from those of the policies followed by the European Community.