§ Mr. Teddy Taylorasked the Secretary of State for Trade and Industry (1) if he will make a statement outlining the further restrictions which were placed on the import of agricultural products from the United States of America to Spain and Portugal in consequence of the Accession of Spain and Portugal to the European Economic Community; and what estimate he has made of the value of the trade affected by these restrictions;
(2) if either Her Majesty's Government or the European Economic Community Commission sought the opinion of the general agreement on tariffs and trade on whether the imposing of quotas on oilseed imports to Portugal from the United States of America and the requirement that Portugal purchases 15.5 per cent. of its grain from the European Economic Community, in consequence of the Accession of Portugal to the European Economic Community, were consistent with the terms and obligations of that Agreement prior to the imposition; and if he will make a statement.
§ Mr. Alan ClarkThe accession to the Community of Spain and Portugal will lead, over a transitional period, to the progressive adoption by both countries of the Community's common customs tariff and the common agricultural policy. As a result, restrictions imposed by Spain and Portugal on trade with countries outside the Community will be reduced in some cases and increased in others. The details are set out in the Treaty of Accession, a copy of which is in the Library.
The GATT permits such adjustments where they arise out of the formation or enlargement of a customs union 208W provided that the resulting protection is not on the whole higher or more restrictive than before. The GATT also provides for the negotiation of compensation to trading partners when this condition is not met.
The Community is fully satisfied that the enlargement arrangements comply with GATT commitments. The Community was not required to seek the opinion of the GATT secretariat. The GATT provides procedures which should be used for the investigation and settlement of any disputes which arise.
§ Mr. Teddy Taylorasked the Secretary of State for Trade and Industry if he will make a statement on the outcome of his recent talks with United States Trade Ministers.
§ Mr. ChannonI discussed a wide range of trade issues with members of the United States Administration, including objectives for the new GATT round and the current dispute between the Economic Community and United States over the enlargement of the European Community.
§ Mr. Teddy Taylorasked the Secretary of State for Trade and Industry if the European Economic Community is seeking to negotiate compensation to the United States of America in respect of the loss of trade rights and injury to the United States of America stemming from the levies placed on corn and sorghum imports from the United States of America to Spain in consequence of Spain's accession to the European Economic Community; and if he will make a statement.
§ Mr. Alan ClarkThe Community began negotiations with the United States in Geneva on 2 May to establish, in accordance with the provisions of the general agreement on tariffs and trade, what compensation if any is due. Meanwhile, the United States Administration have complained about some aspects of enlargement and threatened to take unilateral action not in accordance with GATT procedures against Community exports. The Community is seeking to dissuade the Administration from any such action. My right hon. Friend the Secretary of State for Trade and Industry reinforced this message in Washington last week and made it clear that the Community would have to respond in kind to any United States action.