TNAG-0132-FCO40-168-Tariff-preferences-for-developing-countries-1969 — Page 195

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developing countries.

Any m.f.n. tariff negotiations which succeeded in reducir still further the general level of m.f.n. rates would have the effect of reducin the advantages which the exports of developing countries had been given over the exports of developed countries as a result of special tariff treatment. To this extent it would be accurate to say that a degressive element had been introduced..

into the arrangements.

37. The Group concluded that the only pragmatic solution was to provide that special tariff treatment should be granted for a period of ten years initially but that there should be a major review before this period elapsed in order to determine in the light of circumstances then prevailing whether special treatment should be continued, modified or abolished. Account will have to be taken, inter alia, of the fact that the developing countries are at different stages of development and consequently the effective duration of the benefits gained from special tariff treatment over this period will have varied.

1

Tariff Arrangements now in force

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38. The Group agreed it would be unrealistic-to-expect those developing countries -which now enjoyed a preferential position in certain developed markets to accept

curtailment of their existing access privileges in the context of arrangements for special tariff treatment for all developing countries. The Group recognized that the maintenance in full of existing "access" arrangements for preferred developing suppliers might mean that in certain developed markets the exports of all developing countries would not be treated in precisely the same way. The degree of difference

would depend on the arrangements initially adopted, e.g. the depth of tariff out, product coverage, the number of exceptions and whether any limitation was placed on the volume or value of exports on which. special tariff treatment was to be given. Although equality of treatment as between developing countries right not be fully achieved in certain markets, the movement would be in the direction of rather than

away from equality.

39. One member of the Group underlined his country's concern about the spread of special preferential arrangements and stated that in his country's view a key objective of generalized preferences would be to facilitate the gradual elimination of such arrangements. He said that the achievement of this objective would end pressure from developing countries outside existing preferential arrangements for action which might further fragment the world trading system.

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