§ Mr. Adleyasked the Minister for Trade if he will list all the countries who presently enjoy some form of trading associate status with the European Community; and whether any political considerations are taken into account in agreeing to such arrangements.
§ Mr. SproatThe European Community has a wide range of preferential trade agreements with a number of countries.
There are association agreements, properly so called, only with Cyprus, Malta and Turkey. These agreements are distinguished by involving a commitment to eventual customs union. There are, however, also agreements with each of the member states of the European Free Trade Association — EFTA — providing, inter alia, for free trade in industrial products; an agreement with Spain providing for mutually preferential trade; co-operation agreements—which provide for non-reciprocal preferential access to Community markets, and for financial aid — with most other Mediterranean countries and with Jordan; an agreement with 63 African, Caribbean and Pacific developing countries—the Lomé convention—which provides, besides trade preference, for co-operation in the fields of general economic, industrial, agricultural and technological development; and the Community's 59W generalised scheme of preferences—GSP—which offers reduced-duty or duty-free access for imports of some 1,700 items of processed agricultural and industrial products originating in developing countries. Fuller descriptions of the terms of most of the above agreements can be found in "British Business in Europe", June 1981, a copy of which is in the Library.
In contracting any agreement with any third country, due account is always taken of all relevant considerations.