§ Dr. Hampsonasked the Secretary of State for Trade and Industry (1) when he intends to meet the United States special trade representative; and what position he will take on the 200 per cent. tariff increase on gin proposed by the United States Government;
(2) what estimate he has made of the impact on profitability and jobs in the gin industry of the proposed 200 per cent. increase on gin imports into the United States of America.
§ Mr. Alan ClarkNegotiations continue in an attempt to settle the Community's outstanding dispute with the United States over the trade consequences of Spanish and Portuguese accession. The Community has made it clear that it will respond in kind to disproportionate retaliation of the sort announced by the United States on 30 December against a range of exports, including gin. We estimate that a 200 per cent. tariff would have the effect of effectively eliminating sales of British-bottled gin from the United States market (current sales: £52 million). The impact on profitability and employment in the United Kingdom must depend on the length of time that such a measure would be in force. We hope that implementation can be avoided, and continue in our efforts to promote a mutually satisfactory negotiated solution.