Spain (Hansard, 16 March 1983)

§ Mr. Peter Rees

I am happy to report a number of developments which will, I believe, result in a useful improvement in the opportunities for exports to Spain in advance of Spain's accession to the European Community.

First, the Spanish Government have told the Community that they will shortly open duty quotas for a total of 15,000 cars from the Community for a period of 12 months. For 5,000 cars sold as between 1300 cc and 1600 cc the duty will be almost halved to 19 per cent. For 10,000 cars sold as between 2000 cc and 2600 cc the duty 192W will be reduced by about a third to 25 per cent. It is the Spanish Government's intention to extend such quotas for further yearly periods. This does not constitute a renegotiation of the 1970 agreement between Spain and the European Community, but it is a unilateral gesture by the Spanish Government in response to growing expressions of concern by the Community and in particular by the United Kingdom.

Secondly, the Spanish Government have expressed their firm intention to introduce VAT before the end of 1984. There has long been concern that certain Spanish fiscal practices have discriminated against imports generally, and in particular against imports of cars, and have added to Spain's protective barriers. This discrimination should disappear on the introduction of VAT. In the case of cars covered by the quotas, we believe it will result in a further reduction in the level of protection by at least five percentage points.

193W

Thirdly, the Spanish Government have agreed to remove the discrimination in the maturation period required of imported, as compared with domestic, whiskies. We regard this as a helpful move in respect of an important British export.

Finally, the Spanish Government have agreed to remove three quotas—for special purpose motor lorries and vans, gold and rolled gold, and spirit varnishes—and undertaken to improve the administration of those which remain.