§ Mr. Baldryasked the Secretary of State for Trade and Industry what action the Government are seeking to take against the Japanese offering of unusually favourable credit terms to secure projects for Japanese firms.
§ Mr. FletcherThe Government will raise the question of official Japanese financing terms for international projects in the OECD. It will be seeking a new definition of "tied-aid" credit within the OECD consensus agreement. This would embrace the type of credit arrangements currently provided by the Japanese Government, and would subject them to greater international discipline and transparency.
§ Mr. Hickmetasked the Secretary of State for Trade and Industry if he will make a statement about the access of British financial, banking and other institutions and companies to Japanese financial, insurance, commercial and stockbroking markets; and what representations he has made to open up such markets to British companies.
§ Mr. FletcherJapanese financial markets are still extensively protected. Despite some progress, British access to them remains much more limited than Japanese access to the City of London; moreover, Japanese regulation also effects the extent of business opportunities.440W The imbalance is particularly heavy in the securities dealing sector, and needs to be redressed. My right hon. Friend made representations during his visit to Japan in April. We will at every opportunity continue to press the Japanese authorities not to delay decisions implementing the policy of liberalisation to which they are committed.
§ Mr. Hickmetasked the Secretary of State for Trade and Industry if he will list those non-tariff trade barriers in Japan known to his Department to have existed at some time since 1979 and those which are existing today; and if he will make a statement.
§ Mr. FletcherThe most recent study of non-tariff barriers in Japan was conducted in 1984 by the European Business Council in Tokyo, a copy of which has been placed in the Library. Since 1979 some progress has been made in reducing the incidence of non-tariff barriers; for example, the increased acceptance of foreign test data. Those that remain are the subject of representations through the European Community and bilaterally.
§ Mr. Hickmetasked the Secretary of State for Trade and Industry what complaints he has received from British companies and other interested bodies since 1979 about Japan's non-tariff barriers.
§ Mr. FletcherMy Department receives a number of complaints from British companies and other interested bodies about non-tariff barriers in Japan. The sectors affected include telecommunications, tobacco, pharmaceuticals and medical equipment, electric appliances, cosmetics, food additives and motor vehicles. In addition, more general problems have been raised involving labelling, counterfeiting and the organisation of the retail and distribution system.
§ Mr. Hickmetasked the Secretary of State for Trade and Industry if he will estimate the value by which British exports to Japan have been reduced as a result of Japanese non-tariff trade barriers.
§ Mr. FletcherNon-tariff barriers can take many forms, including, for example, the structure of the retail and distribution system. It is not practicable to offer an estimate of their effect.
§ Mr. Hickmetasked the Secretary of State for Trade and Industry if he will list those companies known to his Department to have been affected adversely by Japan's non-tariff trade barriers since 1979.
§ Mr. FletcherNo. Such information is normally given in confidence.
§ Mr. Hickmetasked the Secretary of State for Trade and Industry on how many occasions he or his Department have made representations to the relevent Japanese authorities about Japan's non-tariff trade barriers; what was the response in each case; and if he will make a statement.
§ Mr. FletcherRepresentations are made both bilaterally and through the European Community on the basis of a list of outstanding problems. While Japan has made some concessions on non-tariff barriers a number of problems still remain.
§ Mr. Hickmetasked the Secretary of State for Trade and Industry if he will make a statement about Japan's predatory pricing policies and the dumping of credit to obtain international capital contracts; what representations 441W he has made to the Japanese authorities about those policies; and what the Japanese authorities have done as a result.
§ Mr. FletcherWe have at all levels made clear to the Japanese authorities our view that some of their financing tactics to secure international projects, though within the letter of the international rules, are nevertheless inconsistent with Japan's stated determination to limit its trade surplus. As the Japanese Government know, we will be seeking further examination of these credit issues in the OECD. My right hon. Friend the Foreign and Commonwealth Secretary and I have conveyed our concerns clearly to the Japanese ambassador here in London.
We remain hopeful that our efforts to sustain the mutual benefits of a responsible trade relationship between the United Kingdom and Japan will succeed.
§ Mr. Hickmetasked the Secretary of State for Trade and Industry if he will make a statement about the current imbalance in trade between the United Kingdom and Japan and between Japan and the EEC as a whole; and if he will estimate what the imbalance will be if the current trend continues for the next five years.
§ Mr. FletcherIn 1984 the United Kingdom had a visible trade deficit with Japan of £2.8 billion while the EC's deficit stood at $10.1 billion. Future estimates are subject to great uncertainty, but if current trends continue, the forecast is that Japan's trade surplus will continue to rise.
§ Mr. Hickmetasked the Secretary of State for Trade and Industry what study he has conducted into the effect of the value of the Japanese yen upon trade between the United Kingdom and Japan and between the United Kingdom and other countries where Japan is competing against British companies.
§ Mr. FletcherBoth the Government and British companies competing overseas keep a close watch on the effective exchange rate of the yen against sterling and other trading currencies. The competitiveness of exports and imports depends upon a wide range of factors, including interest rates and financing arrangements, as well as the price and quality of the goods and services offered.