British, Germans, Dutch lead opposition to taxes

Press, 2 September 1983, Page 6

British, Germans, Dutch lead opposition to taxes

NZPA-Reuter Brussels Stiff opposition had emerged in the European Economic Community to proposed food import taxes and controls which threatened a new trade confrontation with the United States, diplomats said today. The proposals, aimed at appeasing European farmers due to be penalised by reform of the bloc’s farm subsidies system, had come under strong fire from Britain, West Germany, and the Netherlands at a meeting in Brussels of Foreign, Finance and Agriculture Ministers, they said. France had led others in the Community who saw import controls as an essential ingredient of any plan to overhaul a system which has pushed the group to the brink of bankruptcy, they added. ‘ *

The Community’s farm commissioner, Mr Poul Dalsager, told reporters after Wednesday’s meeting that there was some resistance to his proposal for a consumption tax on edible oils and fats, and for limits on imports of cereals substitutes.

Washington has protested strongly against the proposals and warned the Community of possible retaliation. The United States Agriculture Secretary, Mr John Block, said last week that they would be a dreadful mistake. The United States Ambassador, Mr George Vest, handed a formal letter to the Commission on August 22 which expressed American disquiet about the plan for the consumption tax, which would hit the American soyabean industry and the cereals substitutes import restrictions aimed.

mainly at United States com gluten. The French Agriculture Minister, Mr Michel Rocard, said that import controls must be imposed if France were to accept some of the reform proposals. British qfficials said that th|- Foreign Secretary, Sir

Geoffrey Howe, had told other Ministers that the Community must not try to solve the problems of the Common Agricultural Policy at the expense of other countries.

Sir Geoffrey also had recalled the free trade commitment by the leading Western economic powers at their Williamsburg summit meeting in May but the Commission had countered that any measures taken would be within the rules of the General Agreement on Tariffs and Trade, diplomats said. Opposition by the three countries appeared to be very determined and could block the plans if maintained, but the diplomats said that the outcome would not be known until the financial reform proposal took final shape at the Athens summit meeting in Decemr A