TNAG-0134-FCO40-170-Tariff-preferences-for-developing-countries-1969 — Page 29

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it would lead to complications in Customs administration,

and it might not compare very favourably with the free entry offered (with limitations by volume) by the EIC and by some

other countries. Alternative (a) appears likely to involve

the objections inherent in all the options and we must therefore

fall back on (c) and consider whether this might be the solution

to these various difficulties.

20. A revised offer by the U.K. consisting of duty free quotas

based on the EEC's proposals with a minimum of exceptions would

have the advantage of apparent simplicity. The main advantages

of this course can be described as political, economic and

presentational:

(a) Political arguments. There are obvious political

advantages in aligning our offers closely with those of the

EEC,

and practical considerations in not requiring substantial

changes to our preferential arrangements on becoming a member

of the Community.

(b) Economic arguments.

Of the major industrialised

countries the six members of the EEC are the most similar to the

U.K. in terms of their international trade and, in particular,

their existing trade with the developing countries, although

collectively their market is three and a half times the size

of our's. By comparison the proportions of the US and Japanese

markets taken by developing countries exports are very much

smaller, except in the case of a few products. It is therefore

economic sense that the U.K. shall align itself with the EEC

in its treatment of imports from developing countries outside

the existing preferential arrangements.

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