15
S. Canada propose cuts to the British proferential rate or
33.1/3 per cent below the post-Kennedy m.f.n. rate, whichever
is the lower, on all manufactures and semi-manufactures (which
they regard as excluding for instance wood pulp and unwrought
metals) in Chapters 25-99, other than goods under export
restreint to Canada or on which they are not released from
contractual proference rights. Reductions of at least 25-30
per cent are offered on a number of processed agricultural
products covering only some 3 million of dutiable developing
country trade. The principle of self-election is accepted
subject to burden sharing, and a general safeguard procedure
is envisaged.
9. Austria is apparently prepared to grant unspecified
"substantive linear" cuts on virtually all industrial manufactures
and semi-manufactures in Chapters 25-99 except items covered
by the Long Term Cotton Textiles Arrangement. Varying cuts,
often of 50 per cent, are offered on 54 items in Chapters 1-24
including many primary products. There would be safeguarding
provisions but no reference is made to beneficiary countries.
10. New Zealand has simply provided a meagre positive list
of items throughout the tariff on which unspecified preferential
treatment would be granted. Australia has merely tabled the
scheme which she unilaterally introduced in 1965 and which relies
on duty quotas.
The position of Japan and the U.S.A.
11. Japan is reported in the press to be prepared to offer
cuts of 50 per cent on manufactures and semi-manufactures
except for a negative list of 40 items, including textile and
/ non-ferrous