Mr. Bob Edwards:

asked the Secretary of State for Trade and Industry what are the latest available 1983 figures for the United Kingdom's imports and exports of manufactures; and if he will make a statement.

In the first half of 1983 exports of manufactured goods were valued at £19·5 billion and imports at £20·9 billion. The growth of imports is evidence of increased industrial activity and of rising consumer demand at home, both of which offer increased opportunities for British industry.

Mr. Edwards:

Is the Secretary of State aware that those figures are depressing, as it is the first time in 100 years that Britain exported fewer manufactures than it imported? Does he agree that we should not be cheerful about that? Is he aware that the Government's policies have depressed vast areas of the country and made areas such as the west midlands into industrial deserts? Is it not time that we had a change of Government policy? Although we all subscribe to international trade, should it not be fair trade and should we not have some control over imports to prevent the further depression of British industry?

During the first six months of this year, as my original answer showed, £19·5 billion worth of British manufactures went to markets all over the world. One reason why they can enter other markets is that we have a relatively open market. No one stands to gain from a trade war or from interfering with free trade. The idea that we should embark on an import control regime is completely mad, and we would be the big losers.

Given the rebirth of British industry over the last four years — [Interruption.]— with massive improvements in productivity, can my right hon. Friend explain to me and to the House why there is such a yawning gap in our trade in manufactures with the European Community, which is now running at £6,000 million? What is the problem and what will he do about it?

The problem arises because more British people prefer to buy foreign goods than foreign people prefer to buy British goods. We shall solve that problem by producing better British goods at more competitive prices and by meeting the market's demands.

Will the Secretary of State undertake that no deal between the British Steel Corporation and US Steel for the export of slabs from Ravenscraig, at the cost of closing the strip mills at Ravenscraig and Gartcosh, will be approved by the Government until the House has had a chance to debate the matter?

I said yesterday that negotiations were continuing, but I do not know when or whether they will reach a satisfactory conclusion. It is unlikely that they will be concluded during the recess, but I cannot be sure about that. I take note of what the hon. Gentleman says, but I hope he understands that I cannot give him an open-ended commitment such as he seeks.

Does my right hon. Friend agree that the major problem for British manufacturing industry is that we have been importing manufactured goods from too many countries which put up barriers to stop the export of our goods to them?

Absolutely. Now answer that one.

That is a matter of opinion, but if my hon. Friend examines the textile industry—

Where is it?

—he will find a substantial measure of controls there. If he cares to examine our motor and footwear industries, and a range of other industries, he will find that it is possible to travel abroad and meet people who believe that we have many controls on their goods.

Will the Minister come into the real world and leave the cloisters of Tory Central Office? Does he not know that the Japanese and the French put up barriers? Every country protects its manufacturing industry, except this one, and is it not time that he did something for British industry?

To repeat the figure with which I started this round of questions, £19·5 billion worth of British manufactures went into other markets. They went there, according to the hon. Gentleman, over many barriers. Sadly, no country is a free trade purist any more, and Britain is no better or worse than the rest.

Do not the figures emphasise the great and continuing importance to Britain of its international trading relationships, and is it not remarkable that the Labour party seems to be determined to damage those trading relationships by engineering a breakdown of what remains of the free trading system?

My hon. Friend is right. We export a higher proportion of what we produce than any other major country. No other country is as dependent on access to other markets as we are, and part of the price that we pay for that is keeping our market as open as possible.

Is not the inescapable conclusion to be derived from the figures given by the Secretary of State that Britain faces a £1 billion def cit in trade in manufactured goods this year? How do the Government expect Britain to pay its way if that trend continues? What will they do to stop the persistent undermining of British jobs and British manufacturing?

The hon. Gentleman makes the simplistic assertion that we trade only in manufactured goods, but we do not. Britain is a huge exporter of services, and exports half as much again in services as it does in manufactures. Many highly paid jobs in Britain depend on that. In our overall balance of payments last year we had a surplus of more than £3 billion, made up of a variety of components.