§ Mr. Woolmerasked the Secretary of State for Trade what progress has been made on trade talks with Japan with a view to reducing its large surplus of trade with Europe; and if he will make a statement.
§ Mr. BiffenDuring my visit to Tokyo last week I had full discussions with members of the Japanese Government—including Mr. Abe, the Minister of International Trade and Industry—and with the business community on the state of the United Kingdom's trade relations with Japan. In particular I drew attention to Japan's exceptionally low level of imports of United Kingdom manufactures, in contrast with the high level of Japanese exports which cause particular problems for certain sectors of our economy. Separately, I noted the potential for suitably structured investment by Japanese companies in the United Kingdom.
In response to the specific requests which we made in October 1981 and those which the Community presented 242W to Japan in December 1981, the Japanese Government have announced the outline of an emergency import package including the acceleration of the agreed GATT MTN tariff cuts by 2 years; the removal of at least 67 non-tariff barriers involving import, standards and testing procedures; stockpiling of certain materials; and foreign currency lending for certain imports. The Community's reaction to the Japanese package will be considered by the 22 February Foreign Affairs Council.
I informed the Japanese Government that, whilst I welcomed these measures as a step in the right direction, it was doubtful that their impact would be significant, particularly as a means of meeting current trade problems. I therefore emphasised the need for Japan to increase its imports, notably through purchases of capital equipment and by allowing United Kingdom companies greater export opportunities through more direct investment in the local market. My visit to the Society of British Aerospace Companies' exhibition held in Tokyo last week left me confident of our ability to be competitive in the Japanese market.