HC Deb 19 May 1994 vol 243 cc542-3W
Mr. Waterson

To ask the President of the Board of Trade when he will publish a White Paper on the conclusions of the GATT Uruguay round; and if he will make a statement.

Mr. Heseltine

The Government have today published a White Paper "The Uruguay Round of Multilateral Trade Negotiations 1986–94". Copies have been placed in the Library of the House and will be available in the Vote Office.

The Government warmly welcome the successful conclusion of the Uruguay round. It is something for which we have worked tirelessly over many years.

Liberalisation of international trade has always been one of the most effective means of boosting world growth. An OECD/World bank study has cautiously estimated that world annual output will be boosted by over US$270 billion after 10 years as a result of the agreement.

The results should offer great benefits to British business and consumers. As the fifth largest exporter in the world of goods and commercial services, the United Kingdom stands to be one of the biggest gainers from cuts in trade barriers world wide.

Major reductions in tariffs will provide substantial benefits to exporters through improved access to overseas markets. For example, in the sectors where tariff barriers are to be eliminated by the EC, Japan, the United States and Canada, the United Kingdom is well placed to make gains in those markets.

Cuts in the EC's own tariffs should lead to lower prices and wider choice for consumers. Consumers and taxpayers will also benefit from the reductions in farm subsidies and agricultural trade barriers which the round will bring. These represent an important basis for further liberalisation in future.

Inclusion of services and trade related intellectual property rights for the first time within the multilateral trade rules is particularly important. The Government pressed for these subjects to be included in the preparations for the round in the mid 1980s. Services already account for 23 per cent. of United Kingdom trade, and trade in services is growing faster than trade in goods. The general agreement on trade in services will provide a more secure basis for the future growth of this trade to the benefit of United Kingdom service providers and the economy more widely.

The agreement on trade-related aspects of intellectual property rights—TRIPS—is also a major achievement which will provide better international protection for innovative products from the United Kingdom and help to reduce tensions over trade in counterfeit goods. Stronger trade rules in areas such as subsidies, safeguards and anti-dumping will increase the stability and effectiveness of the multilateral trade system.

Creation of the World Trade Organisation itself puts the system on a permanent institutional basis. The new dispute settlement system should help ease trade tensions and reduce the scope for unilateral trade sanctions.

Trade liberalisation is a continuous process and no trade agreement can settle every trade dispute. But the completion of the Uruguay round represents an enormous achievement in which the world has chosen trade liberalisation rather than protectionism. The conclusions of the round provide a secure basis for future expansion of world trade and the growth and prosperity which go with it.