U.S., SIX AND U.K. CUT TARIFFS

Press, Volume CI, Issue 29767, 9 March 1962, Page 13

U.S., SIX AND U.K. CUT TARIFFS

“Whiff Of Things To Come In Europe” (N'Z.P_A.-Reuter— Copyright) LONDON, March 8. The “Financial Times” said today that if Britain joined the Common Market, tariffs would have to come down to match the progress in internal tariff-cutting which the Six had already made.

“They will have to come down, in fact, by 50 per cent.,” the newspaper said in commenting on tariff-cutting agreements between Britain and the United States and the United States and the Common Market announced yesterday.

Under the tariff agreements:

The United States generally undertook to reduce duties paid by Britain by one-fifth on products which, in 1959, were worth about £73 million in trade. Britain agreed to reduce duty on cars and some vehicle parts exported by the United States from 30 to 22 per cent. Under the agreement between the United States and the Common Market, E.E.C. duty on passenger cars would be reduced from 29 to 22 per cent. and on certain vehicle parts from 19 to 14 per cent In return. United States duty on cars would be cut from 8$ to 6$ per cent, and on certain vehicle parts from 10$ to 8 per cent.

According to the British Board of Trade, negotiations between Britain and the E.E.C. had been concluded, but the results were yet to be published. The •‘Financial Times” commented: "There is every reason, one would have thought, to give industry a first taste of the new conditions in which it will have to operate by making an anticipatory cut as soon as possible.

“It is conceivable, of course—though the idea is not a pleasant one—that Britain will not in the end be able to negotiate her way into the community,” the “Financial Tunes” added. “In that case, it might be said, a 20 per cent, cut in tariffs would have been a pointless concession to the Six.”

The “Daily Telegraph" said that for the time being the main influence in Britain of these agreements would be on American manufactured goods in the British market, which should be cheaper, and on British exports to the United States,

which should be more competitive.

The newspaper added: “But the changes also bring with them a faint whiff of things to come in Europe—namely, more goods from the Continent and more opportunities to sell there. They are doubly welcome in that eventually they will mean lower barriers to world trade as a whole.” “The Times” said: “While the bilateral agreements are certainly designed to open the European door, at least slightly. 'to United States sales, the same can be said of Britain.

“It is easy to understand why President Kennedy, seeing the risks to American trade with Europe—especially if Britain enters the Common Market —wished to have powers to negotiate still more drastic tariff cuts. “It is a policy which has Britain’s full support, and is of the utmost importance if Europe’s economic integration is to be compatible with growing world prosperity,” it added. Concessions For U.S.

In Washington, the White House said that as a result of the negotiations with the Common Market, the United States obtained concessions on trade of 1600 million dollars.

In return, the United States agreed to concessions covering commodities with a trade volume of 1200 million dollars. The tariff concessions from the Common Market included reductions of 24 and 26 per cent., respectively, in the tariff on motor-cars and parts, “in dollar terms,” the White House announcement said. “This reduction will average about 126 dollars a car exported to the European market”

The concession granted by the United States will average about 21.50 dollars for each car imported into the country. Of the negotiations for the reciprocal reduction of tar-

iffs involving 18 countries in addition to the Common Market, the most important were with Britain. The United States received from Britain direct concessions erf about 320 tariff items with a trade coverage of 197,500,000 dollars. Included were cars and parts, aircraft and parts, machine tools, certain chemicals, kraft board and paper, synthetic rubber and dried beans. Most of the duty reductions followed the 20 per cent, pattern set by the Common Market. The White House described the negotiations as the largest and most complex in the 28-year history of the General Agreement on Tariffs and Trade.

It said they produced “results of great importance to the United States.”