§ 17. Sir Ian Orr-Ewingasked the President of the Board of Trade whether he will make a statement on his negotiations with the United States Government to persuade them to drop technical and administrative regulations which militate against British imports, and which reduce and delay the success of the Kennedy Round of tariff reductions.
§ Mr. JayWe have made representations to the United States authorities on a number of occasions about various technical and administrative regulations which hamper the export of certain types of British goods to the United States. We have asked in the Kennedy Round of trade negotiations for the removal of the difficulties caused to our trade by these Regulations.
§ Sir Ian Orr-EwingWould the right hon. Gentleman ask the Prime Minister to press this point when he goes to the United States? The flow of international trade must be to the good of all nations of the free world, and unless these artificial restrictions are lowered and done away with we shall never make progress in this direction.
§ Mr. JayWe are pressing this point very strongly through the Kennedy Round negotiations, but we will not neglect any method of making our views known.
§ 18. Sir Ian Orr-Ewingasked the President of the Board of Trade what representations he has made concerning the United States Government's practice of relating duties on organic chemicals not to value but to the United States selling price, contrary to the provisions of the General Agreement on Tariffs and Trade.
§ Mr. JayWe have made representations to the United States authorities over a long period about the effect on British exports of certain benzenoid chemicals of the so-called American selling price system of valuation. In the Kennedy Round of trade negotiations we have placed on record our concern at the damage to our trade caused by this system of valuation, and are pressing for its removal as well as for the full tariff concessions contemplated in the Kennedy Round.
§ Sir Ian Orr-EwingIs the right hon. Gentleman aware that the normal import duty, which may vary between 20 and 40 per cent., is by this practice increased to 100 per cent., and, in certain cases, to 146 per cent.? This is really a punitive import duty and no other country can possibly get over a barrier of this sort. Would the right hon. Gentleman, therefore, strengthen his representations and perhaps consider sanctions, because we cannot go on indefinitely trying to obey the rules ourselves while other great nations use these sorts of malpractices?
§ Mr. JayYes. We believe that this is an unreasonable practice and we are pressing our views very strongly.
§ Mr. Patrick JenkinDoes the right hon. Gentleman recognise that it is quite unrealistic to expect manufacturers of these and similar materials in this country 1616 to welcome the Kennedy Round and to co-operate in progress towards a 50 per cent. reduction when they face this sort of discrimination in what could be principal markets? Will the right hon. Gentleman press this point a little more strongly?