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GUIDANCE NOTE ON A NEW GATT ROUND
Introduction
1
Proposals for a new round of multilateral trade negotiations gather momentum,
and pressure for a positive decision will mount during the year.
2
This Note describes the issues and the UK line. It is not intended to be
given to contacts, but may be freely drawn upon as appropriate. Further information
can be obtained from Mr A J Pryor or Mr R P Madelin in International Trade Policy
Division 1 at the Department of Trade and Industry or from ECD (E) at the FCO.
3
Specific instructions will be sent when lobbying is required. Meanwhile,
Posts are reqested to follow the evolution of thinking on this subject in their host
governments and to report significant developments to London. The Minister for
Trade will certainly want to take advantage of his own foreign travels to probe
the thinking of foreign administrations.
Background : Previous GATT Rounds
4
The General Agreement on Tariffs and Trade is the only multilateral instrument
that lays down agreed rules for international trade. Since 1948, the GATT has
also been the principal forum for negotiating the reduction of trade barriers.
Seven rounds of multilateral trade negotiations conducted under its aegis (most
recently the Tokyo Round, 1973-1979) have made a massive contribution to the
liberalisation of world trade. While world production has increased fourfold since
1945, world trade has increased eightfold in the same period. The main focus of
previous GATT rounds has been on cutting tariffs. But, when the Tokyo Round cuts
are implemented (by 1987), the tariffs of the major industrialised countries will
have been reduced to levels which, on average, no longer represent a significant
constraint on trade (eg a trade-weighted average tariff on
Industrial goods
of 4.7% in the EC and of 4.4% in the US). Some tariff peaks remain (for
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