E.E.C. resists U.S. pressure at talks

Press, 26 November 1982, Page 8

E.E.C. resists U.S. pressure at talks

NZPA-Reuter Geneva

Negotiations on the future of the world trading system were set to move into a decisive phase today after initial conference speeches yesterday showed big differences among the 88 countries taking part.

The main theme of the first conference of the General Agreement on Tariffs and Trade to •bb held at Ministerial level for nine years, is the strain placed on free trading practices by world recession and rising unemployment. European Economic Community delegates stuck firmly to their refusal to go along with new commitments against protectionism demanded by the United States and most developing countries. The Common Market in particular resisted American pressure to have its agricultural subsidies debated within the G.A.T.T. framework. The United States, Australia, New Zealand and many developing countries believe that Market support to farmers leads to unfair competition by European farm exports on world markets.

But the final European position has yet to be worked out, and Market Ministers were due to meet today to make a definite decision on their stance 1 . A leading American negotiator told reporters that

talks between delegations behind the scenes would show whether the meeting was going to fall together or fall apart.

Many Ministers have expressed the fear that if the . conference, due to end at the week-end, fails to make a firm new commitment to liberal trade practices, a new wave of protectionism could be unleashed, leading to a full-scale world depression as in the 19305. France in recent weeks has taken a number of clearly protectionist measures, particularly against the imports of Japanese video recorders. The French Foreign Trade Minister, Mr Michel Jobert, has described the proposed new undertakings to preserve free trade as “completely unadapted to the current situation.” The United States has argued that new liberalisation would help the world economy recover. But Mr Jobert contended that what he had described as “a flight forwards” could merely trigger an even worse protectionist reaction.

The Japanese Foreign Minister, Mr Yoshio Sakurauchi, said that Japan was one of the most open markets in the world and firmly committed to world trade and economic recovery.

Since last year Japan had undertaken measures to open its market even further, he said.

“We implemented such measures as across-the-board reduction of the tariff rates two years ahead of the scheduled staging under , the Tokyo round agreement, improvement of import testing procedures and establishment of institutional arrangements for settling grievances,” said Mr Sakurauchi.

Japan had also decided to reduce substantially and eliminate tariffs on important trade items.

“Japan is today one of the most open markets in the world,” he said.

Mr Sakurauchi’s statement brought an amazed reaction later from an American Senator, Robert Dole, an official observer and Congressional adviser to the United States trade representative, William Brock.

“I didn’t believe it when I heard the Japanese say they had the freest market in the world,” he said.

The European Community has sent Tokyo a list of tough demands on tariffs and market access for its exports. The Market shopping list includes requests for sharp cuts in import tariffs for a range of foodstuffs and industrial products, and in some cases their complete abolition.

The European Commission also wants assurances from Japan of continued restraint in sales to Western Europe of cars, colour television sets and other sensitive products.