6196 D073528 200M 2/74 Cr.P.C. 839/3

NOTHING TO BE WRITTEN IN THIS MARGIN

1

CONFIDENTIAL

BACKGROUND

12.

It is one of our renegotiation objectives to

secure substantial improvements in the Community's

Generalised Scheme of Freferences. A copy of the

relevant extract from the Secretary of State's state-

ment to the Council of Ministers on 4 June in Luxembourg

is attached. (It has already been agreed at working

level that the UK should continue to import jute and

coir products free of duty).

13. The EEC scheme is reviewed each year. The scheme

to operate in 1975 has to be decided by the Council

Giro Joanei by the end of the year.

Discussion so far

at working level has been on the basis of Commission

proposals which involve a considerable step forward in

the usefulness of the scheme to developing, and

i

especially the poorer developing, countries.

AGRICULTURAL PRODUCTS

14. In the agricultural sector the Commission has

proposed a small increase in the tariff cut and some

additions to the scheme's coverage. It is proposed

that products which were important for the Protocol 22

countries should not be included until the new

Convention of Association comes into force.

INDUSTRIAL PRODUCTS

15. In the industrial sector the Commission have

proposed that the 'sensitive" products be reduced from

53 to 13. These are products on which there are pre-

determined quotas for imports into the Community as a

whole and which are divided into quotas for each member

state. The CCT is reimposed when the quotas are

Products dropped from the list become

exhausted.

subject to the arrangements for "semi-sensitive"

products. In this category there are again predetermined

/ceilings

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