First Proposals On Preferences

Press, Volume CI, Issue 29820, 12 May 1962, Page 11

First Proposals On Preferences

(W.Z Press Association— Copyright) LONDON, May 11. Britain has tabled the first clear-cut proposals for solving the problem of Commonwealth preferences in the event of British membership of the Common Market, according to a “Daily Telegraph” report from Brussels.

The newspaper’s Common Market correspondent said the proposals would mean abandoning preferences on manufactured goods from Canada, Australia and New Zealand by 1970. The report said that for Canada some 400 types of manufactures would be involved, but the British Government argument was that they did not represent a very large proportion of Canada’s economy. A smaller number of items would be involved for Australia and New Zealand.

The British Prime Minister (Mr Macmillan) had discussed the proposals with the Canadian Prime Minister (Mr Diefenbaker) during their recent meeting in Ottawa, said the newspaper. The “Daily Telegraph” said Britain had proposed in another document tabled yesterday that preferences on foodstuffs imported from Australia. Canada, and New Zealand should eventually be replaced by world-wide agreements for each commodity, notably wheat It had been suggested the first step towards ending preferences on manufactured goods from the three countries should be taken in January. 1965

At the same time. Britain and the Six would declare themselves rpady to participate in special tariff negotiations in the framework of the General Agreement on Tariffs and Trade The situation arising from the 1965 steps would be reviewed in 1966 A further cut would b« made in July. 1967. There would be another review of the situation by 1969. after which all preferences would be abolished. On food exports from Canada. Australia, and New Zealand, Britain proposed a “general consultation" to see whether it was possible to reach "agreements on the widest possible international basis” for exchanging foodstuffs from the temperate zones, said the “Daily Teiegraph.”