disruptive imports from certain sources without having (as at present) to affect
supplies from all sources. There are difficult negotiations ahead here, and it
is by no means clear that this is negotiable. But British industry is likely
to want the assurance that action can be taken against the main source of dis-
ruptive imports before agreeing to substantial tariff reductions.
AGRICULTURE
23 Sub groups have been set up dealing with dairy products, meat and cereals
and they have been looking at the problems of world trade in these products.
Discussions on a possible international wheat agreement have taken place in the
cereals sub group and in the International Wheat Council.
24
After a lot of procedural difficulties the Agriculture Group has instituted
consultations between contracting parties on tariff and non-tariff barriers
affecting products not covered by the sub-groups. The Group is also looking at
the possible application of the draft standards code to agriculture.
SECTORS
25 The 1973 Tokyo Declaration envisages "an examination of the possibilities for
the co-ordinated reduction or elimination of all barriers to trade in selected
sectors as a complementary technique". The Community has agreed that, if such a
course is justified on economic grounds, it might agree to complete free trade
(on a reciprocal basis, dealing with both tariffs and non-tariff measures) in
the aircraft sector.
26 The Canadians have put forward various proposals for free trade in the ores
and metals sector (in particular copper, nickel, lead and zinc) and also on
timber and wood products, including paper and board. These proposals have not
been welcome to the Community who have argued that sectoral discussions cannot
begin before a tariff reducing formula has been agreed. When this happens it
will be difficult to resist at least one study requested by the Canadians,
especially if we are not in a position to suggest alternative proposals.
27 The Commission have therefore asked for a suggestion for a sectoral discus-
sion beneficial to the Community, in addition to aircraft. The area should be
one where we should like to see free trade and where there are a number of tariff
7