The Press SATURDAY, MARCH 28, 1964. The Kennedy Round

Press, Volume CIII, Issue 30401, 28 March 1964, Page 12

The Press SATURDAY, MARCH 28, 1964. The Kennedy Round

The Kennedy round of tariff negotiations, which will start on May 4, has already produced offers of major trade concessions by both the United States and the United Kingdom. The United States is willing to bargain with other nations on American farm support subsidies, in exchange for a treaty stabilising world grain prices and guaranteeing access to foreign markets for United States wheat. The United Kingdom is prepared to abolish some Commonwealth preferences to help developing countries, provided the Commonwealth countries do not object. The United States offer, if accepted, would probably reduce the acreage on which subsidies are paid, • and would certainly be bitterly opposed by the farm lobby in Washington. The Administration has already shown its support for liberal trade policies by granting comparatively generous quotas for meat imports this year. . •

The United Kingdom offer to abolish certain Commonwealth preferences, subject to the consent of its Commonwealth partners, recalls the similar offer made during Britain’s negotiations with the European Economic Community 15 months ago. As on that occasion, the preferences concerned are on manufactured and semi-manufactured products. New Zealand’s marketing arrangements for meat and dairy products in the United Kingdom would not be disturbed by these proposals, though, with New Zealand’s consent, they could be brought into the discussions. It is probable, however, that the preferences on manufactured and semi-manufactured products will raise enough problems for Commonwealth and other negotiators, and that the more fundamental problems involved in trade in foodstuffs will be shelved..

As the E.E.C. negotiations showed, preferences on manufactured and semi-manufactured products are quite important for several of Britain’s, partners (particularly Canada), as well as for Britain. Commonwealth concessions on this subject would be real evidence of willingness to make trade freer. Both the United States and the Commonwealth would, of course, expect reciprocal concessions from other G.A.T.T. members; but the offers made by these influential nations show that they are in earnest about encouraging more liberal trade policies generally. ’ :