HC Deb 18 February 1988 vol 127 cc714-6W
Mr. Forth

To ask the Chancellor of the Duchy of Lancaster if he will make a statement on the suspension of the tariff concessions enjoyed by the Republic of Korea under the generalised scheme of preference.

Mr. Alan Clark

The European Community suspended Korea's GSP benefits following the Korean Government's decision not to extend to EC member states the same concessions on intellectual property rights as those given to the United States. Despite lengthy and concerted protests from EC member states that this discrimination was unacceptable, the Korean Government have still not extended the same concessions to countries other than the United States.

Following the failure to reach agreement, the Community, fully supported by the British Government, decided to suspend Korea's GSP benefits. In the context of negotiations with Korea it was necessary for the Community to take immediate decisions. The suspension was approved by the Council of Ministers on 18 December and came into effect from 1 January 1988.

Differences between the European Economic Community and the European Coal and Steel Community mean that the procedural steps are not the same and the ECSC suspension will take effect from 15 February.

I would like to take this opportunity to express the hope that the House understands the special reasons why the Government agreed to these measures before it was possible for the House to complete its scrutiny of the proposals.

Mr. Teddy Taylor

To ask the Chancellor of the Duchy of Lancaster if he will publish a list detailing the various measures approved by the EEC Council and implemented by the Commission which had the effect of removing or suspending trade concessions to foreign nations or otherwise restricting imports in each of the past three years.

Mr. Alan Clark

[holding answer 8 February 1988]: I am writing to my hon. Friend and will place a copy of the reply in the Library of the House.

Mr. Teddy Taylor

To ask the Chancellor of the Duchy of Lancaster why he agreed in January to the EEC Commission suspending the tariff concessions enjoyed by the Republic of Korea under the general system of preferences; what will be the effect of this suspension on the price of imported goods from Korea; what action the Commission is calling upon the Republic to undertake so that the suspension can be terminated; and if he will make a statement.

Mr. Alan Clark

[holding answer 8 February 1988]: The suspension of Korea's benefits under the European Community's GSP scheme was made in response to the Korean Government's decision not to extend to EC member states the same concessions given to the United States in the field of intellectual property rights.

New Korean legislation giving better protection for intellectual property came into effect from 1 July 1987. However, the Korean Government entered into a bilateral arrangement with the United States Government which gave United States firms certain special concessions related to the implementation of the legislation. These concessions were not intended to be made available to Community firms. Despite lengthy and concerted protests from EC member states that such discriminatory action was unacceptable, the Korean Government have still not extended the same concessions to countries other than the United States.

Following the failure to reach satisfactory agreement, the Community, fully supported by the British Government, decided to suspend Korea's GSP benefits. The Council regulation stated that it would not be appropriate for Korea to benefit from GSP as long as it discriminated against the Community in this way.

The Government's support for the measure took into account the likely effect of suspension both on United Kingdom manufacturers and on United Kingdom consumers, importers, and distributors. Import prices remain a commercial matter for the companies concerned and include many elements beside import duties. The suspension was approved by the Council of Ministers on 18 December and came into effect from 1 January 1988.

Average hourly wages of female employees in manufacturing industry1
Belgium France Federal Republic of Germany Netherlands United Kingdom
Francs2 Percentage increase Francs2 Percentage increase Deutschmarks3 Percentage increase Guilders2 Percentage increase £24 Percentage increase
1975 111.06 17.9 59.84 15.8 7.51 8.8 8.39 15.6 0.930 27.9
1976 121.85 9.7 11.33 ֵ 8.01 6.7 9.11 8.6 1.094 17.6

Mr. Teddy Taylor

To ask the Chancellor of the Duchy of Lancaster why he has agreed to support a further measure to suspend Korean tariff concessions under the general system of preferences concerning steel products; what will be the effect of the suspension on import prices; what action the Commission is calling upon the Republic to undertake so that the suspension can be terminated; and if he will make a statement.

Mr. Alan Clark

[holding answer 8 February 1988]: I refer my hon. Friend to the answer I gave to his earlier question today.

The Commission published its proposal to suspend European Coal and Steel Community GSP benefits for Korea at the same time and for the same reason as the proposal to suspend European Economic Community GSP benefits. Differences between the two Communities mean the procedural steps are not the same and the ECSC suspension took effect from 15 February.

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