HC Deb 21 May 1999 vol 331 cc452-3W
Mr. Chope

To ask the Secretary of State for Trade and Industry if he will introduce a compensation scheme for those British firms which have been affected by the United States trade sanctions authorised by the World Trade Organisation; and if he will make a statement. [83315]

Mr. Wilson

[holding answer 5 May 1999]: There are no plans for specific measures to support industries that remain on the US Administrations revised retaliation list over the banana dispute. The Government want an early resolution to the dispute and are encouraging the European Commission to come forward quickly with its analysis of options for revising the EU's banana regime. As well as a final settlement, we would also like an interim solution whereby the US retaliation was displaced by a form of compensation as preferred under the rules of the World Trade Organisation.

This would lift the burden from those companies that are being hurt by a dispute that has nothing to do with them. It is also important to stress that there was never any intention of extending the cashmere scheme beyond the date on which the WTO authorised US retaliatory action. There would, therefore, have been no guarantee even for cashmere in respect of orders placed after 12 April.

Mr. Swayne

To ask the Secretary of State for Trade and Industry what support he plans to provide to firms in respect of tariffs consequent upon the EU dispute with the USA over bananas. [83128]

Mr. Wilson

There are no plans for specific measures to support industries that remain on the US Administration's revised retaliation list over the banana dispute. The Government want an early resolution to the dispute and is encouraging the European Commission to come forward quickly with its analysis of options for revising the EU's banana regime. As well as a final settlement, we would also like an interim solution whereby the US retaliation was displaced by a form of compensation as preferred under the rules of the World Trade Organisation. This would lift the burden from those companies that are being hurt by a dispute that has nothing to do with them.