HC Deb 04 February 1987 vol 109 cc666-7W
Mr. Teddy Taylor

asked the Secretary of State for Foreign and Commonwealth Affairs if he will set out the proposals and concessions agreed with the United States of America following their complaint under the general agreement on tariffs and trade rules on the Spanish accession to the European Economic Community; and what will be the estimated reduction in European Economic Community revenue in consequence over the anticipated period of the settlement.

Mr. Alan Clark

[pursuant to his reply, 3 February 1987, c. 571]: For the period 1 January 1987 to 31 December 1990, the Community will open annual reduced-levy quotas for imports into Spain of 2 million tonnes of maize and 300,000 tonnes of sorghum and reduce tariffs on various products with a total trade volume of 400 million ecu. The Community will also drop the requirement that 15 per cent. of the Portuguese grain market be reserved for Community suppliers, and reinstate, subject to the transitional arrangements for Spain and Portugal, the tariffs bound in GATT by the previous Community of Ten. These measures recognise that the United States was entitled to compensation under GATT following the terms of Spanish and Portuguese accession. In return, the United States agreed not to increase to 200 per cent. tariffs on certain Community exports, including British-bottled gin, and to relax its non-trade restrictive quantitative restrictions on certain other Community exports, including bottled beer and wine. The implications for Community revenue are unclear, since reductions in import charges may be offset by increased trade. A copy of the agreement has been placed in the Library of the House.