and non tariff barriers we should like to see removed, particularly perhaps in the American market. Glass has been mentioned as a possibility.
DEVELOPING COUNTRIES
28
The Tropical Products Group and the International Framework Group are primarily of interest to developing countries, but their claims also permeate discussion in all other groups. In the Tropical Products Group the developed countries have already agreed to concessions as an advance MTN instalment to the developing countries. The Community (like other developed countries) has already made and implemented an offer consisting in part of MFN tariff reductions and in
part of extensions to the generalised preferences scheme. The Tokyo Declaration offered "special and differentiated treatment" for the developing countries in areas of the negotiation where this is feasible and appropriate. The developing countries are arguing that this is "feasible and appropriate" in a wide range of cases and they ask for this concession as of right. The developed countries do not accept either of these things; they also expect a measure of reciprocity from the richer developing countries and want to ensure that there
are benefits left to give to the least developed countries. It is too early to
say what may prove negotiable.
CONCLUSION
29 The negotiations must be seen as a whole. Advantages gained in one area
may have to be paid for in another. But the relationship must be assessed in
terms of overall advantage taking account of the effects equally of tariff reductions and changes in safeguard procedures, of new provisions on counter- vailing and on subsidies, and on industries with attacking and with defensive
interests.
30
G
As to timing, we hope that the negotiations may be concluded next year, but in any event given that the US negotiating authority ends in January 1980 - it
seems likely that the implementation of whatever is agreed will be for the 1980's
rather than for the immediate future with tariff cuts phased over the period 1980-84. But again at this stage everything is to play for.
CRE 1
Department of Trade
27 May 1977
8
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Private notes are available after approval.