/15.
reasonably similar our list of sensitive items should be no
longer than that of the EEC.
20. A number of items in the iron and steel sector sensitive
to imports from developing countries might also be included in
our sensitive lists, together perhaps with certain other items
that narrowly missed listing as total exceptions such as
footwear. Further items would have to be settled in consultation
with production departments.
21. It is stated in the EEC submission that they regard the
use of duty quotas as an adequate safeguard arrangement for
products in chapters 25-99 and that they propose to have no
other form of safeguard even in cases where within the quota
limits duty free imports prove to be damaging to domestic
industries. The normal anti-dumping provisions in accordance
with Article VI of the GATT will still of course be generally
available. If we are to be consistent with the EEC it would
follow that we could offer domestic industry or Commonwealth
suppliers no form of safeguard other than the possibility of
imposition of a duty quota, with the full rate of the duty
becoming payable when the quota was reached. It is apparent from
the figures quoted in paragraph 17 above that on a number of
products the EEC formula would result in very considerable
increased access to the U.K. market and that a number of
sensitive U.K. industries would object very strongly to having
no adequate form of protection. We shall therefore have to
consider whether in such cases we would be content to rely only
on the duty quota technique. It should be recalled that the EEC
themselves have reserved the right to except some products wholly
from the scheme.
/22.
: