§ Mr. Marlowasked the Secretary of State for Trade to what extent Italian exporters receive subsidised finance; and whether this is in accordance with the Treaty of Rome.
§ Mr. EyreWith some minor exceptions which require European Commission approval, export subsidies for intra-Community trade are contrary to article 317W 92 of the Treaty of Rome. Subsidies for exports outside the Community are outside the scope of this treaty but are subject to the provisions of the General Agreement on Tariffs and Trade and the international agreement on guidelines for export credit (the so-called "consensus") in which the Community as a whole participates.
One minor exception is that Italy refunds certain internal taxes on exports of mechanical engineering products to other member States. The refunds were fixed at their present rates in 1973 following a decision of the European Court of Justice which considered their conformity with article 96 of the Treaty of Rome. Their value is insignificant and I know of no grounds for challenging them.
There have been some suggestions that Italian steel prices are subsidised but the European Commission, whose responsibility it is to determine the facts, has found no evidence of this.
I am not aware of any other payments which may have given rise to my hon. Friend's question but if he has any further information I shall be glad to look into it.