HC Deb 26 January 1994 vol 236 cc251-2W
Mr. Jim Cunningham

To ask the President of the Board of Trade what improvements in trade opportunities for British companies he expects to result from the GATT, with particular reference to trade with the United States.

Mr. Needham

[holding answer 25 January 1994]: Improved trade opportunities for British exporters will come from higher world growth, reductions in industrial tariffs, the inclusion of services and intellectual property in the multilateral trading system for the first time, improved trade rules and a more stable international trading environment. The average cut in bound tariff rates on exports of industrial products from the European Community to the United States is 49 per cent. Tariffs will be eliminated completely on agricultural equipment, beer, construction equipment, furniture, medical equipment, paper, pharmaceuticals, certain spirits, steel and toys. The new agreement on Government procurement will open up purchases worth over £200 billion worldwide per year to United Kingdom suppliers of goods and services.

Mr. Jim Cunningham

To ask the President of the Board of Trade what assessment he has made of the effect of the GATT on the competitiveness of British industry.

Mr. Needham

[holding answer 25 January 1994]: British industry will benefit from higher world growth and from the reduction of tariffs on imports of components and raw materials into the United Kingdom. British exporters will benefit greatly from the lifting of overseas trade barriers, improved trade rules and a more stable international trading environment.

Mr. Jim Cunningham

To ask the President of the Board of Trade what commitment has been given by the United States Government as part of the GATT negotiations to reduce(a) direct and (b) indirect subsidies to industries; and what was the overall percentage reduction in subsidies undertaken.

Mr. Needham

[holding answer 25 January 1994]: In common with the other GATT signatories, the United States Government will be bound by the terms of the new subsidies agreement which will impose clearer disciplines on subsidies than the present GATT subsidies code. It is too early to say how this will affect the value of any subsidies paid out by the United States Government.

Mr. Jim Cunningham

To ask the President of the Board of Trade what will be the total reduction in the sum spent by European Governments in the reduction of subsidies to European industries following the GATT agreement.

Mr. Needham

[holding answer 25 January 1994]: Except in the field of agriculture, where specific reductions in domestic support and subsidised exports have been agreed, it is too early to say how the GATT agreement will affect the value of any subsidies paid out by European Governments.