BORDERS MP Michael Moore said yesterday he would lobby against the threat of punitive US tariffs on Scottish cashmere exports in Washington next week, after industry representatives warned that 1000 jobs and #20m of lost orders were at risk.
Washington has threatened to impose a crippling 100% tariff on imports of European Union cashmere from March as part of its ''banana war'' with Brussels.
But the Liberal Democrat MP for Ettrick and Lauderdale told a meeting of Scottish knitwear firms in Hawick yesterday that the US embassy in London appeared unaware of the dire impact that such punitive trade sanctions would have on the Borders, which have suffered nearly 3000 job losses in the past 12 months.
The meeting estimated that the threatened rise in US import duties on cashmere could lead to a further 1000 job losses and #20m in lost orders.
A major effort will now be made to persuade the Americans to take knitted cashmere off their hit list of products being targeted in the banana war, in which it is alleged that Europe is discriminating against imports from US and Central American growers.
Moore pointed out to the Americans that 1000 Borders jobs are already going because of the decision of the US-owned electronics firm Viasystems to close its printed circuit board plants in Selkirk and Galashiels.
The MP said last night: ''The ambassador's trade adviser knew about the Viasystems situation, but was clearly unaware of the extent to which the cashmere
tariffs would affect the region.
''He has undertaken to relay the statistics we produce back to the US trade representatives in Washington and did acknowledge that in the dire circumstances in which the Borders finds itself, the 100% tariff could have profoundly
serious consequences.''
In five hours of intensive
telephone lobbying, Moore also spoke yesterday to Trade Minister Brian Wilson; the British embassy in Washington; the chef de cabinet of EU Trade Commissioner Sir Leon Brittan in Brussels and the
Scottish Office.
Moore added: ''We boast about the special relationship between Britain and America and we must make sure that every British angle is used to get a fair deal for the Scottish cashmere producers.
''I will be in Washington next week with the Commons Select Committee on Trade and have arranged to raise the tariff war issues with the British ambassador . . . I would also hope to meet US government trade officials.''
Yesterday's meeting was
attended by representatives of more than 30 firms as well as Moore and Scottish Borders Enterprise chairman Tony Taylor, who is also chairman of the
Scottish Textile Association.
Wilson last night put out a statement at the Department of Trade and Industry, saying the Government was urging Washington to pursue the banana war dispute through the World Trade
Organisation instead.
He said: ''Every effort is being made to head off implementation of the threatened retaliation . . . we are urging the United States to think again before it is too late . . . We are also staying in close touch with the UK companies who are potentially affected and encouraging to make their views known to the US authorities.''
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