Canadian Concern At European Trade Plans

Press, Volume XCIX, Issue 29370, 24 November 1960, Page 13

Canadian Concern At European Trade Plans

(Special Correspondent N.2.P.A.)

(Rec. 10 p.m.) LONDON, November 22.

It was difficult to see how Britain would be able to avoid an arrangement that Was not in some degree and perhaps seriously damaging to Canadian interests, said the Canadian Finance Minister. Mr Donald Fleftufig, discussing, in a special supplement on Canada published by “The Times." his country's Concern over Britain’s possible relations with Europe and the Six. Mr Fleming said that Britain had given assurances that any accommodation with the Six would be conditional Oh "satisfactory" arrangements regarding Commonwealth trade, the agriculture position of other members of the Seven and the supranational aspects of the community’s institutions.

“To Canada,” he said, “of course the first two are the most important. It is certain that if some form of customs union is to be the solution, some compromise will have to be made between the application of a common external tafift at one extreme and free entry and preferences at the other. What Will be the cost of such a compromise and to whom?

“Moreover, it Would appear probable to Canadian eyes, at any rate, that the application of a common tariff to all or part of Britain’s trade would lead almost inevitably to the acceptance of other Common Market obligations by Britain. This, too, would have important implications for Canada and the Commonwealth. “In the British market, Canadian and other Commonwealth producers have been able to sell their foodstuffs, their raw materials and their manufactures under special terms. This has been important to them because of the very size of the market and because of the nature of their access to it. In this market they have certain advantages—in return for which Canadian and most other Commonwealth Governments give reciprocal advantages to British producers. The advantages we receive are free entry and preferences: the advantages we give are the same.

“The advantages enjoyed by Canadian and other Commonwealth producers in the British market are threatened in several ways by the proposals for closer association. The threat relates in part to free entry and in part to Commonwealth preferences, not only on foodstuffs, but also on materials and manufactures.”

Mr Fleming said that the adoption of the Common Market agricultural policy by Britain in whole or in part would be totally unacceptable to Canada, as he believed it would be to other Commonwealth countries. “Is it reasonable to assume that the exclusion of agricultural pro-

ducte could be negotiated in any accoifrfhodation? ” he asked. “From the Canadian point of view, we believe it is out of the question to Expect any accord between Britain and the Six that omits agri Culture.’*