§ 27. Mr. Jim CunninghamTo ask the Secretary of State for Trade and Industry what assessment she has made of the impact on UK manufacturing of the opening of a new WTO trade round. [25575]
§ Ms HewittOn its own the opening of a new WTO trade round will have little impact on UK manufacturing. This is because the opening of the round merely launches multilateral negotiations. A fuller assessment of the impact on UK manufacturing and the UK economy overall should come after the hoped for successful conclusions of those negotiations. World wide reductions in industrial tariffs should, for example, lead to both improved market access for UK manufacturing overseas and lower cost sources of components. Negotiations start with an expectation of significant benefits. A halving of WTO members' tariffs, for example, could increase world incomes by around $200 billion a year. UK manufacturers could be expected to benefit significantly from such increases in world incomes.