HC Deb 17 February 1966 vol 724 cc1507-8
5. Mr. Marten

asked the President of the Board of Trade what further progress has been made in the Kennedy Round tarff negotiations; and if he will make a statement.

Mr. Darling

I will, with permission, circulate in the OFFICIAL REPORT a statement of developments since my right hon. Friend made his statement on Thursday, 29th July, 1965.

Mr. Marten

Can the hon. Gentleman confirm that the deadline for completion of the negotiations is July of this year? If that is so, are the Government taking any steps to approach the American Government to extend the date?

Mr. Darling

What we are doing at present is trying to restore the momentum in the negotiations so that the bargaining over the final round can be settled, if possible, this summer. It is necessary that the negotiations should be completed very early in 1967 because that is when the United States' statutory powers concerning the Kennedy Round come to an end.

Mr. Peter Emery

Now that the problems appear to be solved in the E.E.C., it is not clear that this advance can be taken, and will not all our E.F.T.A. partners be looking to us to force the pace in the negotiations? It is up to the Government to do this.

Mr. Darling

When the hon. Gentleman sees the statement in the OFFICIAL REPORT, he will see that we are doing precisely that. Following is the statement: Progress in the Kennedy Round negotiations in the second half of 1965 was affected by the difficulties experienced by the European Economic Community, which prevented the Community from extending its negotiating mandate and, in particular, from joining in submitting an offer of concessions on agricultural products other than cereals. Discussions have continued between delegations, bilaterally and in wider groups, on the scope for limiting the exceptions to the proposed linear reductions in tariffs and on problems in certain industrial sectors such as chemicals, steel and textiles. The examination of non-tariff barriers to trade is also continuing. The British Government joined in September, 1965, with most other participants in the agricultural negotiations in submitting offers of concessions on agricultural products other than cereals. Forty-three other governments, including governments of agricultural exporting countries and developing countries, have now contributed offers to the negotiations. A special group on tropical products has been examining the scope for action in this field in the interests of the developing countries. In an effort to restore the momentum of the Kennedy Round, the Director-General of the G.A.T.T. circulated to participating Governments last month a report which identified the numerous points on which decisions will need to be taken by Governments in order to ensure early progress. The British Government are considering the possibilities for taking action as quickly as possible on the recommendations in this report. As a country dependent on experts, Britain's interest lies in maintaining the growth of world trade, and in securing reciprocal reductions of trade barriers. The Government consider it particularly important to reduce tariffs reciprocally in Europe, so as to mitigate the discrimination arising from the separate existence of the E.E.C. and E. F.T.A. They will, therefore, continue to do all they can to ensure progress during the spring so that negotiations can pass through their decisive stages during the summer and autumn. They believe that, if all participants show a similar determination, is should be possible to complete the negotiations early in 1967.