TNAG-0132-FCO40-168-Tariff-preferences-for-developing-countries-1969 — Page 88

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

CONFIDENTAL

discussion, to assist in further consideration of this question.

Item 4

9.

Multilateral Consultations (TC/Pref/68.11)

The paper on this item covered similar ground to the one on

safeguards and, although there was a short discussion the next morning,

no now points emerged.

Item 5 Primary Products

10.

This was a continuation of consideration of an issue which had boen

raised by the Canadians at the September meeting of the Group, namely,

on the assumption (in their view) that primary products falling within

Chapters 25 - 99 of the BN should be excluded from any preferences scheme,

how these products should be defined.

11. Monk (Canada) said that his authorities had made some progress in

drawing up a list of these products, but that this had not yet. been

completed. When ready it would be circulated bilaterally. ́ They were

working principally on the definition in article 56, paras. 1 and 2 of

the Havana Charter (explanatory note to Article XVI of GATT).

Examples

of what they considered to be primary products were ores, concentrates,

metals in unwrought forms, raw rubber, raw hides and skins, forest

products up to wood pulp and certain textile fibres. The Japanese

said they were particularly interested in non-ferrous metals, raw silk

and petroleum products.

Kemmis (U.K.) thought that the coverage indicated

above was wider than had been hinted at earlier by Canada; but it was still

not comprehensive. He pointed out that the U.K. gave duty free entry on

most of the products mentioned.

12. At that point a degree of controversy emerged. The EC (Di Martino)

and the Danish delegate pointed out that to leave out primary products in the industrial sector could lead to difficulties over giving preferences on manufactured and semi-manufactured goods utilising these products, as to do so could involve a degree of negative protection (dutics on the raw material and not on the finished product imported from LDCs). Monk said

that he did not disagree with this but this was why the Canadians were interested in mfn free entry for all these products. He was supported

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