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We have to remember that over half the UK's trade is with fellow members
of the Community and with certain neighbouring countries with which the
Community has free trade arrangements. The other half of our trade is affected
by the negotiations, and, as reaffirmed in the Downing Street Summit, we are
committed to working closely with the rest of the world trading Community in the
interests of expanding trade and reducing protectionism.
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There is an additional commitment (reaffirmed in the Tokyo Declaration)
to help the developing countries. The idea here is that trade is better than
aid. The Community is at one in holding this view, and so too are most of our
industrial trading partners.
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Because of the recession and the additional damage which competition can
inflict in these circumstances, there is force in the view that at the same
time as barriers are reduced there should be some reinforcement of the rights which already exist in the GATT (under Article XIX) to take safeguard action
in certain situations.
CONSULTATION WITH INDUSTRY
9 In the Spring of 1975 the Department of Trade urged industry to make its
views known to the European Commission, and that advice still holds. At the
same time it is important that the sponsoring departments of the Department of
Industry and the Department of Trade are aware of any particular problems and
interests of particular segments of UK industry, especially in cases where this
may not be obvious from representations already made or from public statements.
In the interests of getting a point of view across, there is always value also
in speaking strongly to the Community counterpart industries, and also in
working closely with Trade Unions who may themselves have a European point of
contact. It would be useful to broadcast widely points which may seem important
to trade associations and important firms in US, Japan and other countries
participating in the negotiations.
PRESENT POSITION
10 The handling of the GATT negotiations has been entrusted to a Trade
Negotiations Committee in Geneva which has set up seven groups. Six of these groups are concerned respectively with
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