HC Deb 19 May 1952 vol 501 cc18-9W
94. Mr. Holt

asked the President of the Board of Trade if Her Majesty's Government has yet received a reply to its Note of the 9th April addressed to the United States Government expressing concern at the possibility of an increase in certain American tariffs.

Mr. H. Strauss

Yes. The State Department reply was received by Her Majesty's Embassy in Washington on 7th May. The following is the textThe British Embassy's aid memoire of 9th April, 1952, expressing concern at the number of applications presented to the United States Tariff Commission for action under Section 7 of the Trade Agreements Extension Act of 1951 has been given careful study in the Department of State. It is true that in recent months there has been an increase in the number of investigations ordered by the Tariff Commission in response to applications from United States industry. Furthermore, it is recognised that several of these investigations relate to products of importance in the export trade of the United Kingdom and other countries which have made serious efforts to increase their dollar earnings by sales to the United States, and which are concerned lest these efforts be frustrated. The Department of State has always taken the position that modifications of duty concessions should only be made in cases of genuinely serious injury or threat of injury resulting from trade commitments. The Government of the United States and of the United Kingdom are in complete accord in their insistence that the obligations in Article XIX of the General Agreement on Tariffs and Trade should be scrupulously observed, and that Article XIX should not be invoked merely because a concession results in more vigorous competition from imports. Furthermore, it is the opinion of the Department of State that in cases where modifications of duties are made as a result of escape clause investigations, such modifications should be kept under constant review to insure their remaining in force for only such time and to such extent as is necessary to prevent or remedy the injury to domestic industry. Accordingly a system providing for the periodic investigation and report by the Tariff Commission on all escape clause actions is in the process of being established. The attitude of the United States Government on the basic principle of lowering barriers to international trade remains unchanged, and any tendency to deviate from the principle, wherever it may arise, is the subject of concern to the Department of State. Cooperative action among all free nations to reduce and minimise trade barriers between us is essential if we are to provide a strong economic basis for our mutual security and progress.