§ 40. Mr. Bruce-Gardyneasked the President of the Board of Trade if he will now state Her Majesty's Government's policy towards the United States Government's request for a waiver to Article 1 of the General Agreement on Tariffs and Trade in respect of United States imports of motor cars from Canada.
§ The President of the Board of Trade (Mr. Douglas Jay)A waiver was granted by the contracting parties last December, allowing the Government of the United States to remove their import duties on motor vehicles and component parts made in Canada. With the support of the United Kingdom Government safeguards were inserted to ensure that, if at any time the contracting parties find that action under the waiver has caused or imminently threatens, a significant diversion of trade in any of the products concerned to Canadian sources, the waiver will lapse in respect of those products.
§ Mr. Bruce-GardyneWould the right hon. Gentleman agree that the arranging of a special tariff privilege between Canada and the United States is bound to lead to the diversion of trade?
§ Mr. JayThat is debatable. But we made it perfectly clear to the United States Government that we did not like this arrangement and that we would have much preferred to see the tariff on all imported cars removed altogether. We withdrew our opposition to this arrangement only on a number of conditions.