§ Mr. KnowlesTo ask the Chancellor of the Duchy of Lancaster if he will make a statement on the conclusion of trade negotiations with Japan following the accession to the Community of Spain and Portugal.
§ Mr. Alan ClarkWhen Spain and Portugal acceded to the Community in 1986 the revision of the Community's common customs tariff led to negotiations under article XXIV: 6 of the general agreement on tariffs and trade with certain trading partners who were affected by that revision. In the case of Japan, the reduction of tariffs and progressive removal of other trade barriers in Spain and Portugal significantly improves the access of Japanese goods to the Community. After protracted negotiations, it has been agreed that in return Japan will grant to the Community a package of tariff reductions and market-opening measures on items of particular but not exclusive interest to Spain and Portugal. This agreement was approved by the Council of Ministers on 24 November. Although the British Government considered the Japanese offer inadequate a majority of member states was prepared to except it. A decision was urgent because appropriate tariff rates on items of interest to Japan had to be included in the Community's common customs tariff, as amended in accordance with the new harmonised system of goods classification, in time for this to come into effect on 1 January 1988. In the view of the Commission, negotiations with Japan could not be further prolonged. The Government judged that it was in the interest of the United Kingdom that a decision should be taken to conclude them.
344WI greatly regret that it was not possible for the House to complete scrutiny on this occasion.