Tariffs rather than quotas

Press, 16 May 1985, Page 22

Tariffs rather than quotas

PA Auckland Countries should erect trade barriers at their own borders rather than hide behind the General Agreement on Tariffs and Trade, the G.A.T.T. deputy direc-tor-general, Mr William Kelly, has said.

He told the Pacific Basin Economic Council conference in Auckland that G.A.T.T., however, was vital for the conduct of world trade.

“Governments should use tariffs rather than quotas and other types of non-tariff barriers,” said Mr Kelly. “These tariffs should then be negotiated downwards. “Governments should also refrain from the use of export subsidies to trade on foreign markets. They are just as much a cause of protection to domestic producers as trade restrictions.”

Mr Kelly said Governments should “get out of the way of trade” and leave it

to businessmen. He said moves to liberalise world agricultural trades under G.A.T.T. might be delayed by measures such as having G.A.T.T. include controls on high technology products. “In a field such as agriculture all the preparatory work has been done already for a major renegotiation to be done, but not on high technology,” said Mr Kelly. All speakers at a plenary session expressed support for the progressive elimination of trade barriers and an early round of G.A.T.T. which should include the liberalisation of agricultural goods. The president of the Economics Council, Mr Frederick Whittemore, said France was keeping the next round of trade talks in limbo. Even if France split with E.E.C. countries on that issue, the next six months would be critical to the chances of effective G.A.T.T. renegotiations.