§ Mr. Bruce-Gardyneasked the President of the Board of Trade if he will make representations to the United States and Canadian Governments regarding their decision to abolish tariffs on motor cars bilaterally and preferentially in contravention of the General Agreement on Tariffs and Trade.
§ Mr. RedheadBritish motor cars are already admitted duty free into Canada and the agreement to which the hon. Member refers would therefore not create any preference against them. It might, however, involve the grant of a new tariff preference for Canada in the United States. This, as has been made clear in a report by a Working Party of the Contracting Parties to the General Agreement on Tariffs and Trade, would be inconsistent with Article 1 of the General Agreement.
As I said in reply to a Question from my hon. Friend the Member for Birkenhead (Mr. Dell) on 3rd February, my 119W right hon. Friend has already expressed to the Governments of Canada and the United States his concern about the possible effects of this agreement; and he has expressed the hope that the United States Government may be able to make their action consistent with Article 1 of the General Agreement by removing the tariff on imports of motor cars from other sources also.