the institutions of the Community take due account of the interests of th United Kingdom as a prospective member of the Community, and that to this end consultations will take place before such decisions are taken. This will ensure that the British Government will be able to influence Community decisions during this period. This procedure will also apply to decisions to be taken in this period by the United Kingdom which would affect the obligations we shall have undertaken as a prospective member.

Transitional arrangements for industry and agriculture

77. At the outset we made it clear that we accepted the common external tariff (CET), subject to special arrangements for the twelve industrial materials dealt with in paragraphs 140 and 141 below. We also accepted that the common agricultural policy would apply throughout the enlarged Community, subject to the arrangements for New Zealand and for sugar, and to clarification on a number of issues.

a number of issues. However, we required adequate transitional arrangements. Our objective in seeking these was twofold. On industrial tariffs we wished to secure as quickly as possible the advantages for British industry of integration within a single European market, while providing an adequate period of adjustment for our Commonwealth and other trading partners. For agriculture and horticulture, we needed arrangements which would permit an orderly adjustment by our producers to the Community's system of support and marketing; avoid sharp increases in food prices; and prevent abrupt dislocation of the exports of our Commonwealth and other third country suppliers.

78. These objectives have been achieved by the arrangements described in paragraphs 79-87 below.

INDUSTRIAL TARIFFS

79. There are two main processes involved here. First, all tariffs on trade between the United Kingdom and the Six have to be eliminated. This is to be done in five equal stages, starting three months after accession. Second, subject to the special tariff arrangements referred to in paragraphs 140-142 below, we have to apply the CET to all countries neither belonging to, nor enjoying any special arrangements* with, the enlarged Community. For those countries affected which at present have no preferential position in our market, this will involve only fairly minor adjustments to the duties we apply to their goods: in general the CET is rather lower than our own tariff. However, for the countries affected which currently enjoy free entry to our market, it will mean the gradual application of the CET to their exports to this country. It has been agreed that our move to the CET should

* The countries expected to have special arrangements with the enlarged Community include: those members of the European Free Trade Association who do not become members of the Community; the independent Commonwealth countries in Africa, the Caribbean, the Indian Ocean and the Pacific; our dependent territories, except Gibraltar and Hong Kong (for which see paragraph 118 below); and the countries with which the existing Community has special arrangements, which include the countries associated under the Yaoundé Convention, the dependent territories of the Six and the countries mentioned in paragraph 145 below. The enlarged Community will also be offering preferences to most developing countries under the United Nations Conference on Trade and Development Generalised Preference Scheme.

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