§ Mr. Fryasked the Secretary of State for Trade and Industry (1) what arrangements have been made during the negotiations for the entry of Spain into the EEC to remove Spanish subsidies on finished leather;
(2) what arrangements have been made during the negotiations for the entry of Spain into the EEC to remove the Spanish subsidy on exports of scoured wool.
§ Mr. ChannonFrom 1 January 1986, Spanish Government subsidies will have to comply with the state aids provisions of the Treaty of Rome. The export subsidy provided through the operation of the present tax system will automatically disappear when VAT is introduced in Spain on the same date.