§ Mr. Austin Mitchellasked the Secretary of State for Trade to what extent the 35 per cent. increase in the terms of trade for motor cars between 1975 and September 1981 was the result in the change in price competitiveness and to what extent a change in the composition of (a) imports and (b) exports.
§ Mr. EyreAlthough it is not possible to eliminate completely the effect of composition changes, the import unit value index now incorporates a recently introduced improvement. The change in the terms of trade index of passenger motor cars can therefore be regarded as the result of a change in price competitiveness. However, too much importance should not be attached to just one month's figures.
Unit value indices and terms of trade passenger motor cars 1975=100 Overseas trade statistics basis Exports UVI Imports UVI Terms of Trade* 1975 100.0 100.0 100.0 1976 122.6 135.8 90.3 1977 154.3 155.0 99.5 1978 180.7 175.2 103.1 1979 195.5 192.5 101.6 1980 214.4 202.1 106.1 1981 January 236.6 211.6 111.8 February 244.1 212.7 114.8 September 301.8 223.9 134.8 October 302.6 231.0 131.0 * Terms of trade index is derived as the export UVI divided by the import UVI as a percentage.