COMMISSION DISCUSSIONS WITH USA AND JAPAN ON IMPROVEMENTS TO THEIR
OFFERS: UK SUGGESTIONS
There are attached the following lists:
2.
3.
a.
10.
C.
d.
e.
£.
List A items excepted wholly or in part from the US offer where both the US rate and the US offer (if any) are markedly higher than the CCT and where the Community is principal supplier;
List B items like those in List A but where the Community is merely a major supplier;
List Citems which the US have excepted wholly or in part but where their action should probably not be criticised;
List D- items excepted by the US wholly or in part, where there is some Community exporting interest but where their action should probably, subject to further discussion in the Article 113 Committee (Deputies), not be criticised more than mildly because there are also certain Community defensive interests.
-
List E items excepted wholly or in part from the Japanese offer where improvements should be sought (comparable to the contents of Lists A and B together but for Japan); and
List Fitems which Japan has excepted wholly or in part but where their action should probably not be criticised (com- parable to List C but for Japan).
Some explanatory notes are needed.
First the Japanese lists are less complete than those for the US simply because we understand the Commission are due to discuss offers with the US before they do so with Japan. In addition the priority objective in respect of Japan seems to be to get across the board improvements designed to increase from 18% to a much higher figure the weighted average reduction involved in their offer.
4. Of the US lists the selection of items in List B is to some degree arbitrary: we have tried to include all the excepted items where the differences in tariffs are substantial and the Community's share of US imports in 1976 was reasonably large: in the textiles sector some items are included where the share is somewhat smaller except in cases where the dominant supplier (or a dominant supplier) is a developed country, normally Japan, imports from which are not subject to the MFA.
5. In Lists A and B items of particular UK interest are starred.
Lists C and F are compiled primarily with the Community's defensive interests in mind.
6.
7. Apart from the items in Lists C and D (and subject in the latter case to discussion in the Committee) the British view would be that the Commission drawing on the statistical data they have compiled and on past discussion with Member States, should feel free to criticise the US and Japan for their failure to apply the formula in respect of any