HC Deb 28 January 1986 vol 90 cc451-2W
Mr. Speed

asked the Secretary of State for Trade and Industry what steps he is taking to seek to ensure that British car exporters have discrimination against them removed by the Spanish Government.

Mr. Howard

The fastest possible removal of Spanish barriers to imports of British cars was one of our major priorities in the negotiations over Spain's entry to the Community. Under the treaty of accession, high Spanish duties on imports of cars from the rest of the Community will be phased out over seven years, with over half the reduction occurring in the three years 1986 to 1989. In addition, Spain has opened a tariff quota for imports of cars from the United Kingdom and from other member states at a substantially reduced rate of duty; and the introduction of VAT from 1 January 1986 will remove the discrimination against imports inherent in Spain's previous indirect tax regime.

Mr. Speed

asked the Secretary of State for Trade and Industry how many cars Britain can export to Spain in 1986 at preferential duty rates; and how many can be similarly imported from Spain.

Mr. Howard

Under the treaty arrangements governing Spain's accession to the Community, British and other Community car exports to Spain are subject to a preferential rate of import duty which is substantially below the rates applying to Spanish imports of cars from non-Community countries. There is no limit on the quantities involved. In addition, Spain has opened a tariff quota from 1 January for imports of Community cars at a further reduced rate of duty. The United Kingdom share of this quota will be 5,000 cars in 1986.

The rate of import duty applied to British imports of cars from Spain is also substantially lower than the rate applied to non-Community countries. There is no limit on the volume of such imports.