§ Mr. Biggs-Davisonasked the Chancellor of the Exchequer under what international agreements the United Kingdom is precluded from forming or entering a tariff preferential area in Europe or elsewhere.
§ Sir D. EcclesI have been asked to reply.
Apart from the provisions of bilateral Treaties of Commerce and Navigation, the General Agreement on Tariffs and Trade precludes the grant of new or 110W increased tariff preferences. It does, however, allow, subject to certain conditions, the formation of free trade areas and Customs unions.