Failure Likely In G.A.T.T. Talks

Press, Volume C, Issue 29620, 16 September 1961, Page 12

Failure Likely In G.A.T.T. Talks

I-Special Correspondent N Z.P.A.) GENEVA. September 15. The General Agreement on Tariffs and Trade meeting on the overloaded British butter market looks like ending tonight without agreement. The Board of Trade will then have to reconsider what it is going to do.

Since no country is willing to accept a voluntary reduction on its exports to Britain unless New Zealand and Denmark do the same—and New Zealand and Denmark have firmly refused to do so—it will be for the British to decide what anti-dumping or countervailing duties they will impose.

Their decision will have to be endorsed by full conference of G.A.T.T., when there will be present more than 40 countries, compared with 14 at the special meeting, not all' of whom are members. This may not be for a few weeks.

Failure of the present meeting is not yet certain. The G.AT.T. secretariat has been seeing delegates separately in the hope of finding some solution and will continue to do so this morning. But it is in the nature of a long-stop operation and there seems only faint hope it will succeed.

The reasons appear to include an assessment by dumping countries of what the British may do. Apparently they are not convinced the British will impose duties, since it would result in an increase in the price of butter and might cause political complications at a time when Britain is applying to join the European Economic Community. They therefore are holding out for a universal reduction of supplies, which includes New Zealand's and Denmark’s supplies.

New Zealand and Denmark are banking on the British keeping their word and applying duties if no voluntary agreement is reached. There may be a change of heart when the heads of delegations confer later. If not, it is possible the full meeting may not reassemble.

In that case a statement of failure or disagreement would be issued and it would then be up to the Board of Trade to announce its intentions.