TNAG-0132-FCO40-168-Tariff-preferences-for-developing-countries-1969 — Page 179

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Sir,

The Council of the O.E.C.D. has instructed me to transmit to you informati on the conclusions reached in this Organisation on the subject of special tariff

treatment for developing countries.

As you know, paragraph 7 of the Communiqué, which was issued after the last meeting of the O.E.C.D. Council at Ministerial level on 30th November and 1st December, 1967 dealt with the subject in the following terms:

"Ministers welcomed the progress made by the Special Group set up to examine trade relations with developing countries in accordance with the directives given at their meeting in November 1965 aimed at the formulation of constructive and concerted policies for encouraging "increased export earnings by those countries. The Group set out a number of general considerations relating to temporary special tariff treatment by developed countries in favour of all developing countries.

Ministers agreed that the broad lines of the Group's work should serve as a common basis for Delegations of Member Governments at the Second United Nations Conference on Trade and Development and in future discussions of this matter. Ministers underlined that the envisaged arrangements should not imply the granting of reciprocal advantages by developing countries to the exports of developed countries.

Some important questions regarding the arrangements for special tariff treat- ment remain open. Ministers instructed the Organisation to continue to consider these problems in the light of the views expressed by developing countries. Several Ministers stated that a key element in such arrangements would be the phasing out, as rapidly as possible, of existing preferences extended by some developing countries to some developed countries. Other Ministers cruld not

share this view, and stressed that the fundamental aim of the arrangements contemplated was the granting of new advantages to the exports of developing

countries."