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Mr. Lang: I agree with my hon. Friend; it is an important subject which must be tackled further. Under the Uruguay round, the situation is due to be reviewed in 1999. Some progress was made in Singapore towards performing work of an analytical and reporting nature, which will be useful in enabling work on further liberalisation of agriculture to occur with more speed in 1999. I hope that the European Union will be a full-hearted participant in that work.

Mr. Andrew F. Bennett (Denton and Reddish): Further to the question of the environment, will the Secretary of State tell us how he now hopes that progress will be made on environmental issues in further negotiations? Specifically, is he confident that such agreements as the Montreal protocol on chlorofluorocarbons, the Basle agreement on hazardous waste, and the London convention on international trade in endangered species will not fall foul of rules on world trade? Does he realise that it is important that we protect the environment, but that we are now putting that goal in conflict with further trade liberalisation?

Mr. Lang: I agree with the hon. Gentleman. Those are important issues, and the establishment now of a permanent committee on the environment will enable progress on the issues that he identified and on many others. The United Kingdom Government will be keen a participant in that work.

Mr. Gary Waller (Keighley): Does my right hon. Friend agree that--in contrast to the remarks particularly of the hon. Member for Bolsover (Mr. Skinner)--the United Kingdom has gained tremendously by inward investment in telecommunications by liberalising the market and encouraging competition? The United States telecommunications market remains in many respects relatively protectionist and at best favours reciprocal agreements. Has progress been made on opening up that market to British products and services?

Mr. Lang: I agree with the premise of my hon. Friend's question. Considerable progress has been made. The final date for an agreement is 15 February 1997. No doubt a great deal of intensive negotiation will be needed then. Provided the will exists--I believe that it does--there must be at least a reasonable prospect of the United States being a full-hearted participant in a final deal. The United States also stands to benefit enormously from the liberalisation of that massive industry.

Rev. Martin Smyth (Belfast, South): Like others, I appreciate the President of the Board of Trade's upbeat report on the conference, particularly his welcome for the plan of action for more favourable and predictable access for exports from less-developed countries. Was there much discussion about the imbalance between the costs

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of production in such countries and the high price of the same goods in developed countries? For example, it might cost £1 to manufacture trainers that sell for £40, £50 or £60 here or in another developed country. Where is the money going? How much can be poured back to help those developing countries to educate their work force?

Mr. Lang: I have considerable sympathy with the hon. Gentleman's point. In the European Council I pressed for recognition of the desirability of accepting zero tariffs on goods from the 48 least developed countries in the world, which account for 0.4 per cent. of world trade. There was not general agreement in the European Union or elsewhere on that. However, I am glad to say that we were able to make progress on giving technical assistance to the least developed countries, on helping them find access to markets, and on assuring them that there is no question, through trade and labour standards or other such measures, of penalising those areas in which they have a competitive advantage. We are keen to help them to exploit their competitive advantages, gain access to our markets and acquire the technology that will enable them to strengthen their position.

Mr. Nigel Forman (Carshalton and Wallington): I believe that the United Kingdom is already the most open advanced economy in the world, exporting more per head than the Japanese and more in total than all the Asian tigers put together. If those facts are broadly correct, will my right hon. Friend assure the House that, while he holds his post--which I hope he will do for a long time--he will continue to lean against any tendency towards regional mercantilism among our partners on the continent, and will ensure that the World Trade Organisation has all the necessary powers and competencies to stop those tendencies gaining ground?

Mr. Lang: I am grateful to my hon. Friend. I agree with the premise of his question. I also agree with the sentiments that he expressed. The WTO has a committee to deal with regional issues. There has been a substantial increase in the number of regional groupings. There must be a danger that some of those groupings enjoy a distortion of trade and that others are protectionist and inward-looking. It is our purpose to ensure that regional groupings have a multilateral outlook and form building blocks towards the multilateral free trade agenda recognised by the WTO.

Mr. Robert Sheldon (Ashton-under-Lyne): The right hon. Gentleman talked about maximum country co-operation. We all agree with that. Is he aware that China--a country that will play a greatly increasing role in world trade--is not in the World Trade Organisation? What is the right hon. Gentleman's view on the admission of China and encouraging it to enter the WTO?

Mr. Lang: I favour the admission of China, provided that it undertakes to accept the rules and observe them. The WTO already accounts for 90 per cent. of world trade. It has 126 members, but there are also some 30 applicants, of which China is one and Russia is another. I should like those major trading nations, particularly those with massive potential for the next century, to join the WTO, but it is important that they accept the disciplines of the organisation.

Mr. Jacques Arnold (Gravesham): My right hon. Friend and his departmental colleagues deserve

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congratulation on the leading role that Britain, under their leadership, has played in the success of the Uruguay round of the general agreement on tariffs and trade and on their successes at the WTO conference in Singapore. However, he cannot rest on his laurels, because there is far too much foot-dragging in our regional grouping, the European Union, on providing proper free trade access into our market, especially for developing countries. Will he bear it in mind that countries in Latin America and elsewhere look to Britain to continue to give a lead in pressing for that from inside the European Union?

Mr. Lang: Yes, and developing countries--and the least developed countries--were grateful for the lead that the United Kingdom gave on core labour standards, on opening up our markets and on increasing the access to trade of the least developed countries. We shall continue that work.

Mr. Tam Dalyell (Linlithgow): By what margin do the Japanese propose to reduce their impositions on whisky? Was there any discussion of the on-going Libyan sanctions? As a former Scottish Secretary and the Member for Galloway and Upper Nithsdale, the right hon. Gentleman, of all people, knows that there are grave doubts about Lockerbie. Given that the decision-makers in Libya were educated at British universities and technical colleges, is not the damage done by those sanctions to British industry enormous, especially as phase 3 of the great man-made river project is now worth some £10 billion? How is it that the Germans, Italians and South Koreans are trading merrily while British industry is disadvantaged by this American-led policy?

Mr. Lang: The hon. Gentleman referred to the D'Amato legislation, which affects Iran and Libya. That was not discussed at the conference. The question of Japanese whisky is still is under negotiation. Japan has yet to reach a final conclusion, but I have indications that the possibility of a substantial reduction in the duty on imported whisky is being contemplated.

Mr. Michael Fabricant (Mid-Staffordshire): Further to the question of my hon. Friend the Member for Keighley (Mr. Waller) on the liberalisation of telecommunications, will my right hon. Friend confirm that he will do everything in his power to ensure that British Telecom's acquisition of MCI goes ahead? Would not a single market among WTO members--which, as he said, already accounts for 90 per cent. of world trade--make trading blocs such as the North American Free Trade Agreement and the EU irrelevant?

Mr. Lang: If we achieved global free trade, regional groupings would become irrelevant. That is why it is important to keep the groupings' eyes on the multilateral agenda and not allow them to become Fortress North America or Fortress Europe. I hope that my hon. Friend understands that it is not appropriate for me to comment on the ambitions abroad of British Telecom.

Mr. Jeremy Corbyn (Islington, North): The Secretary of State was rather reticent in his description of the problems of child labour and working conditions. What

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does he seriously propose to do to eliminate child labour throughout the world by the enforcement of ILO conditions? Is he not concerned about the growing death rate in the economic zones of China and throughout south Asia in the new industries which is caused by appalling working conditions, the lack of trade union rights and health and safety legislation, and the enormous profits that British, North American and European companies make from such exploitation?

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