TNAG-1297-FCO40-1652-Visit-by-Sir-Geoffrey-Howe--Secretary-of-State-for-Foreign-a-1984 — Page 207

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ANNEX B

Solutions agreed for the tariff treatment of industrial materials

1. For woodpulp and lead bullion (both key materials for industrial processing in the United Kingdom) the CET will either be completely suspended or equivalent arrangements made so that we are assured of continuing duty-free access to these products even beyond the end of the transitional period.

2. For newsprint we shall share in a Community duty-free quota up to the full extent of needs not covered by domestic production. This means that our newspaper publishers will be able to buy the balance of their requirements duty free from the sources they choose including both Canada and Scandinavia. Agreement was also reached on widening the definition of newsprint to include lighter weight newsprint: otherwise some of our newspapers who use this type of newsprint would have had to pay a CET of 12 per cent.

3. For phosphorus it has been agreed that we shall not start to apply the CET even at a reduced rate until 1977 and that it would be open to us then to apply for either suspension of the tariff or duty-free quotas.

4. For alumina it has been agreed that the CET would be suspended from its current level of 8.8 per cent to 5.5 per cent. Imports of alumina into the United Kingdom would be free of duty until 1 January 1976, would as from that date pay half the suspended rate, and would from 1 July 1977 pay the full 5.5 per cent rate. But it has been recognised that in the particular circumstances of the aluminium industry we should be able at any time after entry to apply in advance for a duty-free Community tariff quota for the period after 1 January 1976.

5. The remaining products on our list fall into two groups. For plywood, arrangements have been made, including a duty-free quota for certain specialised types of coniferous plywood which should continue to allow in most of our imports duty free. And for the wattle extract used by our tanners the CET will be cut by two-thirds, down to 3 per cent. These arrangements for plywood and wattle extract are not limited to the transitional period.

6. For the remaining products, silicon carbide, ferro chrome, ferro silicon, refined lead and zinc and aluminium it was established that we should be able to secure all or nearly all our needs duty free either from increased United Kingdom production or from other suppliers in the enlarged Community. And in the case of lead and zinc we shall be participating in existing Community tariff quotas which it has been agreed to adjust to take account of enlargement. Moreover in the case of certain of these products. it has been agreed specifically that if the supply position were to change it would be open to us to apply for duty quotas.

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