EUROPEAN FREE TRADE ASSOCIATION (LISBON MEETING) (Hansard, 15 May 1963)

§ Mr. Heath

The Ministerial Council of the European Free Trade Association met at Lisbon on 9th, 10th and 11th May.

The principal task before Ministers at this meeting was to determine the timetable for the final dismantling of tariffs on industrial products. They agreed that these tariffs should be eliminated by 31st December, 1966. This represents an acceleration of three years on the timetable laid down in the Stockholm Convention. Acceptance of this major advance reflected a co-operative effort on the part of all the Governments concerned. It has demonstrated that within the Association there is both the ability and the will to make swift progress towards the establishment of a very far-reaching extent of free trade.

There are certain members of the Association for whom agricultural exports are of particular importance and certain special arrangements were concluded in respect of these commodities. The United Kingdom concluded an 160W agreement with Denmark providing for the suspension of the tariff on butter so long as quota restrictions operate against Denmark and other major suppliers. The Agreement also provides for the reciprocal abolition of tariffs on certain other minor agricultural products of interest to Denmark and the United Kingdom. It provides for further examination and discussion with a view to reaching agreement on the stabilisation of the bacon market and establishes an Anglo-Danish Liaison Committee to keep under review matters affecting trade between the two countries. The full text of the Agreement will be laid before the House as soon as possible.

Certain European Free Trade Association Governments face special problems in the field of economic development and, with a view to facilitating co-operation in this matter, it was decided that an Economic Development Committee should be established. We have also informed the other European Free Trade Association countries that it is our intention to allow access to the London longterm capital market to all European Free Trade Association member Governments.

Ministers discussed the problem of trade in fish and fish products within the European Free Trade Association and certain bilateral arrangements were made among members in this field. The United Kingdom has agreed to advance to the 31st of December, 1964, the date for final elimination of tariffs on certain industrial fish products. Ministers agreed upon the importance of the British proposal to call a West European fisheries conference and agreed to consult together in preparation for it. They expressed the hope that all the countries which had been invited would co-operate in ensuring its success.

There was a brief discussion of the forthcoming trade negotiations in the General Agreement on Tariffs and Trade. Ministers expressed their intention to participate fully in these negotiations and will continue their discussions during the present week in Geneva.

The outcome of this Lisbon meeting offers improved access to valuable markets for our exports. It demonstrates that, given the will, barriers to trade within Europe can be dismantled in such a way as to provide a fair balance of advantage to all concerned.