§ Mr. Austin Mitchellasked the Secretary of State for Trade and Industry what estimate Her Majesty's Government have made of the effect of exchange rate stability on exporters and on importers; what proportion of United Kingdom imports and exports of manufactured goods are traded with European Monetary System countries; and what is the balance of trade in manufactures with such countries.
§ Mr. ButcherNone, although a number of studies by outside bodies have examined the impact of exchange rate variability on trade flows. In 1985 the countries of the European monetary system accounted for 39 per cent. of our exports and 52 per cent. of our imports of manufactures. The balance of trade in manufactures with these countries showed a deficit of £8 billion.