Copy of the Written Answer given by the Secretary of State for Trade after the European Foreign Affairs Council on
17 January
The Council agreed to enter the substantive phase of the Multi- lateral Trade Negotiations on the basis of a number of working hypotheses drawn up in the GATT. The Council emphasised the importance of a positive result from the negotiations and of reciprocal obligations between trading partners. Particular streru was given to the need to ensure that cafeguard action could be taken selectively, to the need to ensure that cominon rules are applied on customs valuation and on countervailing, to the Community's export interests, and to agriculture. The Community'c determination to continue to seck differential and favouresle treatment for developing countires, and in particular the least developed of them, was reaffirmed. The more advanced developing countries would be expected to accept certain reciprocal ouli- rations, On industrial tariffs the Council agreed to an initial offer in accordance with a Swiss harmonising formula. They recognized that adjustments to the offer would be needed. The Community for its part rejected the idea that exceptions and partial exceptions should be balanced by extra cuts elnemere The Council exprecced the opinion that the tariff cuts should be implemented in two tranches, the first of five annual stages and the second, a conditional tranche, of three such stages. The Council would examine the general economic situation to see whether the conditions for transition to the second tranche wore fulfilled.
The Council also authorised offers to be made, in response to requests received in November, in respect of tariff and non-tariff barriers to trade in agricultural goods and non-tariff carriers to trade in industrial goods.
The British Government welcome the fact that these decisions of the Council enable the Community to participate in the next phase of these GATT negotiations and hopes that they will now be able to proceed to an early and positive conclusion.