§ Mr. CorbynTo ask the President of the Board of Trade what is the current level of ECGD exposure in Algeria for(a) defence-related equipment and (b) non-defence equipment; and if he will make a statement on the Government's policy in relation to trade with Algeria. [26014]
§ Mrs. Beckett[holding answer 28 January 1998]: From data readily available exposure under ECGD guarantees for defence business with Algeria was £97.8 million at end of December 1997 with a further £82 million exposure in respect of non-defence business giving total exposure of £179.8 million. Over £160 million of this total exposure has been paid as claims, but these sums have been rescheduled and thus are expected to be recovered. There is currently no medium term ECGD cover available for defence-related goods as ECGD cover for new business is primarily available for sales of equipment to the Oil and Gas sector.
The Government maintain trade relations with Algeria within the framework of the EC/Algeria Co-operation Agreement: we support the current negotiations on a new EU/Algeria Association Agreement, providing for reciprocal liberalised trade: we also welcome Algeria's application to accede to the World Trade Organisation.