/22
countrico.
If we adopt the EEC's teclunique we shall have to
follow their line on this.
25. On what rules of origin should be adopted, working groups
have started work both in the OECD and in UTOTAD.
There appears
to be agreement that the origin rules should be neutral in
their effects on preferential trade, that is they should not
be designed to increase or limit the preferential access given
to developing countries' exports, but a great deal more work
will be necessary to reach general agreement.
36. The question of reverse preferences on which the USA made
a number of representations during 1968 has not been raised in
recent months but may well be made a condition in the submission
that they will be tabling. This issue will have to be discussed
with the Commonwealth developing countries concerned before we
çan form a view on whether we can make any concessions.
Conclusions
37. Until we see the US and Japanese lists it is difficult to
form a final view on how the U.X's submission will need to be
modified for the sake of domestic industry and of Commonwealth
developing countries. It is also not possible to foresee how
the EEC may react to the USA's offers, but the indications are
that the Community will maintain their offer of duty free quotas
without exceptions in the industrial sector and that if the US were unable to implement their offers in the foreseeable future
the Community will be prepared to go ahead unilaterally.
In
*
view of our political and economic position our best course is
to align ourselves with the EEC on this issue, and thereby to
limit the preferential access we grant by a quota formula that
will give some reassurance to industry andto the Commonwealth,
/and will