NOTHING TO BE WRITTEN IN THIS MARGIN

CONFIDENTIAL

tailored to suit the needs of individual

countries. The resulting association

agreement is the legal framework into

which the trade arrangements are

incorporated. Both the Yaoundé Convention

and such association agreements involve

the granting of reciprocal preferences

by parties to the Agreements.

10. Trade Agreements. The Community have

concluded preferential trade agreements

with certain countries around the

Mediterranean basin. Tariff reductions

are on a preferential basis and the

agreements have other preferential trade

arrangements such as duty free or reduced

duty quotas. The Community also has non-

preferential trade agreements with

countries in the Middle East and is

thinking of extending these, as a result

of the formation of a common commercial

policy, to other countries e.g. Japan.

Tariff reductions in these cases are on an

m.f.n. basis.

11.

Morocco Protocol.

When the Rome

Treaty was signed, a protocol was annexed

to it providing for the continuation of

the existing customs regime between a

member of the Community (e.g. France) and

a third country (e.g. Morocco) whose

products had been imported on preferential

terms. Such products were not entitled

to free circulation within the Community.

The Protocol has been superseded by other

arrangements

COMPIDENTI AL

/12.

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