3
average value of the EEC offer to about 32% (compared with an
average weighted cut in its initial offer of about 40%). In most
cases the withdrawal takes the form of an offer to make a lesser cut
than that required by the full application of the original tariff-
cutting formula but in some cases the Community proposes to make a
total exception of the product concerned.
3
In addition to this "hard-core" list, the Community has made it
known to the USA and Japan that it may make further withdrawals in the
light of its overall assessment of the final value of their offers
to us and, in particular sectors, of their response to our requests
for significant improvements in their initial offers. This second and
more flexible list of products, which may be deployed according to
detailed progress in the negotiations, is known as the "conditional
list".
4
Finally, detailed bilateral negotiations are proceeding with the
other participants in the MTNS including the more advanced developing
countries involving the exchange of requests and offers in the
industrial tariff, non-tariff measures and agricultural fields. By and
large, these countries have so far been unable to apply the agreed
formula to their industrial tariffs.
5
In this final phase of the negotiations, the situation is bound
to change very rapidly and consultations on various aspects but
particularly on tariff offers and requests are likely to be
required at short notice.
Industries should continue to maintain
close contact with their sponsoring divisions (for the most part
in the Department of Industry and MAFF) who will, in turn, be in close
touch with the Department of Trade as the negotiations proceed.
CREL
Department of Trade
15 May 1978