general agreement on restricted spec(81)30 fariffs … · 1972/73 enlargement of the eec, ... milk...

GENERAL AGREEMENT ON

fARIFFS AND TRADE

Working Party on Accession of Greece to the European Communities

PROPOSED WORK PROGRAMME ON AGRICULTURAL TRADE

Communication by Australia

The following communication, dated 21 May 1981, has been received from the Permanent Mission of Australia.

) 1. Australia welcomes the advice given by the EEC at the GATT Council Meeting of 10 March 1981 that the European Communities now accept that the Working Party does have a mandate to examine the effects of its Common Agricultural Policy on trade with third countries; that variable levies do constitute "duties or other regulations of commerce" in the context of Article XXIV of the GATT; and that it is ready to make available such information as will enable the CONTRACTING PARTIES to make such reports and recommendations as they may deem appropriate.

2. An examination of the records of this Working Party, as well as those on the 1972/73 enlargement of the EEC, clearly shows that this advice represents a reversal of the position taken by the EEC on these matters over the last ten years. In Australia's view this development provides a sufficient basis for progressing the CONTRACTING PARTIES' examination of the EEC in the light of the General Agreement. Accordingly, at the GATT Council meeting on 10 March 1981, Australia withdrew, for the time being, its request in document L/5117 for the establishment of a panel to examine those issues which had blocked progress in the CONTRACTING PARTIES' examination of the Rome Treaty and its subsequent enlargements.

| 3. At the meeting of the Working Party on 1 April 1981 Australia made a number of " suggestions as to how the examination of the agricultural aspects of the documents

relating to Greece's accession to the EEC, "in the light of the General Agreement", might proceed. This note, which details Australia's proposals for a work programme in this area, has been prepared on the request of the Chairman of the Working Party, for circulation prior to the next meeting of the Working Party.

4. In Australia's view, the Working Party should, as a minimum, undertake the following studies on the agricultural aspects of this issue:

(i) identify the measures which affect trade in agricultural products operated by Greece immediately prior to its accession to the EEC and by the EEC;

RESTRICTED

Spec(81)30 1 June 1981

Spec(81)30

< i i ) examine the j u s t i f i c a t i o n , i n terms of the General Agreement, f o r the n o n - t a r i f f measures appl ied by the EEC on a g r i c u l t u r a l products and determine t h e i r v a l i d i t y i n the post-enlargement s i t u a t i o n ;

( i i i ) es tab l ish an ind ica t ion of the incidence of the pro tect ive measures appl ied by Greece immediately p r i o r to i t s accession to the EEC and by the EEC; and establ ish developments i n the app l ica t ion of these measures (reference paragraphs 4 and 5(a) of A r t i c l e XXIV of the General Agreement).

5. In order to minimize the workload on members of the Working Party and the sec re ta r i a t , i t i s suggested that ex i s t i ng mater ia l should be u t i l i z e d as fa r as poss ib le .

6. Regarding point ( i ) above, the tab le i n Attachment 1 to t h i s note, which provides an inventory of the t a r i f f and n o n - t a r i f f measures operated by the EEC a f fec t i ng a g r i c u l t u r a l t rade , i s submitted fo r the consideration of the Working Party. I t i s suggested that at the next meeting of the Working Par ty , the EEC could v e r i f y or correct t h i s tab le and provide a s im i la r inventory fo r Greece immediately p r i o r to i t s accession to the EEC on 1 January 1981.

7. Regarding point ( i i ) above, Aust ra l ia w i l l be provid ing comments to the Working Party on the question of the l ega l i t y of a number of measures l i s t e d i n Attachment 1 .

8. Regarding point ( i i i ) above. Attachments 2 , 3 and 4 to t h i s note are submitted for the consideration of the Working Party. These attachments comprise:

- An ext ract from Table 2 of UNCTAD document TD/B/C.1/207/Add.2, providing estimates of the leve l and trend of protect ionism fo r ag r i cu l t u ra l products in EEC countries and Greece (Attachment 2 ) .

- Table 4 of the same UNCTAD document, provid ing estimates of ad valorem equivalents fo r the EEC var iable l ev ies , 1970 to 1977 (Attachment 3 ) .

- An ext ract from Table 3 of the same UNCTAD document, providing a comparison of nominal and e f fec t i ve rates of protect ion fo r processed a g r i c u l t u r a l products in the EEC i n 1971 (Attachment 4 ) .

9 . Aust ra l ia also suggests, i n re la t i on to point ( i i i ) above, that f o r the purposes of paragraphs 4 and 5(a) of A r t i c l e XXIV, a fu r the r ind ica t ion of the pro tect ive incidence of the t a r i f f and n o n - t a r i f f bar r ie rs as they apply

Spec(81)30

to Greece prior to accession, and of the EEC immediately after accession, and the trends in these measures in the EEC since its establishment, could be obtained from an examination of the difference between the prices domestic producers in the EEC and in Greece prior to accession actually received and those they would receive if competing products were freely imported. Such a study of price comparisons was carried out by the Secretariat of the United Nations Economic Commission for Europe and published in the "Economic Survey in Europe in 1960" (document E/ECE/419). It is therefore proposed that the Working Party request the GATT secretariat to prepare such a study on key agricultural products for selected years since 1958 in the EEC, and for the latest year available for Greece. It is suggested that the products examined should comprise those subject to variable levies, as noted in Attachment 1 to this note.

10. Finally, Australia notes that the CONTRACTING PARTIES have never determined that the Rome Treaty establishing the EEC and the agreements providing for the enlargement of the EEC in 1972/73 are in conformity with the GATT. Without prejudice to this question, Australia is prepared to carry on work in this area, reserving its right to address this issue at an appropriate time.

Inventory of Tariff and Non-Tariff

SITC

001 011 013 022 024 031 041 042 043 044 045 046 047 048 051 052 053 054 055 061 071 072 073 074 081 099 112 122 422 431

Description

Live animals

Measures

Meat; fresh, chilled or frozen VL Meat in airtight containers Milk and cream Cheese Fish and fish preparations Wheat and mes lin unmilled Rice Barley unmilled Maize unmilied Other cereals unmilled Meal and wheat flour Meal and cereal flour Cereal preparations Fresh fruit and nuts Dried fruit Preserved fruit Preserved vegetables Vegetable roots and tubers Sugar and honey Coffee Cocoa Cocoa food preparations Tea and mate Feeding stuff for animals Food preparations, n.e.s. Alcoholic beverages Tobacco manufactures Fixed vegetable oils Processed oils

VL VL VL

VL VL VL VL VL VL VL VL

VL

VL

VL

All ACHCI

Operated by

T T T

T

T T T T T T

T T T T T T T T T T

PHS PHS PHS

PHS

HS HS

HS HS HS HS

HS HS

HS

HS

tNI the

Q Q

Q Q

1 EEC Affecti ng Trade in

" - ' " 'I Trade Measure

GQ

.

GQ

GQ

GQ

GQ

BQ BQ

BQ

BQ

BQ BQ

BQ

BQ

DL DL

DL DL DL DL

DL

DL DL DL

DL

LL

LL

SP SP SP

SP SP SP SP SP SP SP SP SP SP

SP SP SP

L SP SP SP SP SP SP

L SP SP SP SP SP

Agricultural Products

VR ES ES ES ES

ES ES ES ES ES ES ES ES

ES

ES

ES

R R R

R

R

R

MP ST

ST

MP ST

PS PS

PS PS

PS PS PS PS PS PS

PS PS PS PS PS PS

PS

TO (/>

< Q fl>

x Restrictions applied in whole or in part to the SITC group. The key to these symbols is as follows: PHS,

HS = prohibitions due to health and sanitary reasons or health and sanitary regulations; SP = special import preferences for States associated with the EEC> Q,BQ = quotas (method unspecified) or bila+eral quotas; GQ = global quotas; DL, LL = discretionary or liberal licensing of imports; L = import licensing (method unspecified) or VL, MP = variable levy or other minimum import price restriction,* R = restrictions (method unspecified) or special seasonal restrictions; and ST = State trading, VR = voluntary restraint measures, T = Tariffs, ES = Transport Subsidy, PS = Production subsidy. Source: Information largely based upon Table 6 of TD/B/C.1/207/Add 2.

Spec(81)30

ATTACHMENT 2

The Level and Trend of Protectionism for Agr i cu l tu ra l Products in Selected CountrTes

(Percentages)

Country

EEC

Benelux

France

Germany, Federal Republic

I t a l y

United Kingdom

Denmark

I re land

Greece

Average level of ag r i cu l t u ra l pro tect ion

mid-1950s

36

25

34

40

44

47

9

6

44

mid-1960s

53

51

43

58

73

32

12

17

66

ear ly 1970s

691/ 74

66

69

78

31

19

22

82

Average i n d u s t r i a l t a r i f f

mid-1960s

15

13

19

8

20

19

7

24

n.a.

— Excluding United Kingdom, Denmark and I re land

Source: Table i s an ext ract from Table 2 of UNCTAD document TD/B/C.1/20/Add.2, based on Odd Gulbrandsen and Assar Lindbeck, The Economics of the Agr i cu l tu ra l Sector (Stockholm: Almquist and Wickse l l , 1975, page 38). Average i n d u s t r i a l t a r i f f s f o r I re land are based on UNCTAD secre tar ia t ca lcu la t ions .

Spec(81)30

ATTACHMENT 3

Estimated Ad Valorem Equivalents fo r the EEC Variable Levies: Wffi=W77

Product

Butter

Milk powder

Olive o i l

OiIseeds

Soft wheat

Hard wheat

Husked r ice

Barley

Mai ze

White sugar

Beef and veal

Pi g me at

Eggs

1970-71

481

. . .

155

131

189

232

210

146

141

203

140

134

201

1971-72

172

112

153

147

209

254

205

185

176

145

133

131

162

1972-73 1973-74

(Per cent)

249

145

125

131

153

181

115

137

143

127

112

147

159

320

156

96

77

79

116

60

96

98

66

110

131

111

1974-75

316

139

113

80

107

120

81

107

106

41

162

109

164

1975-76

320

266

207

127

124

145

137

117

128

109

196

113

. . .

1°76-77

401

571

. . .

. . .

204

. . .

179

147

163

176

192

125

. . .

Source: Table 4 of UNCTAD document TD/B/C.1/207/Add.2.

. . . Not avai lable

Nominal and Effective^6tes of Protection for Processed AgrWultural Products in the European Economic Community (Based 1971 Tariff Rates) (Percentages)

Meat products

Preserved sea foods

Preserved fruit and vegetables

Dairy products

Cheese Butter Condensed and evaporated milk

Grain and grain products

Corn milling Rice milling Prepared foods Flour and cereal preparations Bakery products

Prepared and processed food

Pickles and dressings Roasted coffee Cocoa powder and butter Miscellaneous food products

Vegetable oils

Coconut oil Cottonseed oil Groundnut oil Soyabean oiI Rapeseed oiI Palm kernel oil

1/T -, , - , • , ^

Tariff

Nominal

19.5

21.5

20.5

23.0 21.0 21.3

12.0 16.0 5.6 20.1 12.0

20.1 15.2 13.6 12.0

11.5 11.0 11.3 11.0 9.0 10.5

European

rate

Effective

36.6

52.6

44.9

58.8 76.5 44.3

21.8 70.3 0.0 48.9 0.9

25.9 35.7 76.0 6.7

132.9 79.0 139.7 148.1 57.2 141.5

Economic Community

Effective,., protection-

165.0 (90)-7

52.6 (50)

74.7

276.0 (180) 327.7 (900) 334.4 (400)

82.1 105.9 -50.0 (-20) 94.7 0.0

25.9 35.7 76.0 6.7

132.9 79.0 139.7 148.1 57.2 141.5

- Includes levies and other special charges. 2/ - Data in parentheses include other non-tariff barriers.

Source: Table is an extract from Table 3 UNCTAD Document TDB/C.1/207/Add.2 which is taken from Alexander J. Yeats, "Effective Protection for Processed Agricultural Products: A Comparison of Industrial Countries", Journal of Economics and Business, Fall 1976, Table 1 (D.35).

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