TARIFFS AND QUOTAS RECOGNISED IN WORLD CHARTER

Grey River Argus, 27 March 1948, Page 5

TARIFFS AND QUOTAS RECOGNISED IN WORLD CHARTER

HAVANA, March 24 The International Trade Organisation’s 30,000 word charter, which was signed by 53 nations to-day, recognises two important principles, which it is hoped, will ensure greater material prosperity and higher standards of living throughout Ihe world. The first principle is that all members shall share tariff benefits granted to any country, but the charter recognises the existence of several systems of 'preferential agreements be; tween two nations or groups ot nations —excluding British Commonwealth pacts —which cannot be eliminated abruptly without causing great harm to the nations concerned and disrupting trade generally. The charter provides that these preferences be gradually eliminated through negotiation.

The second principle is a resogmtion of the undeveloped nation’s right to use the import, quota system to aid the development of national industries. The use of quotas for this purpose is authorised provided the nations conform to certain pre-deter-mined principles, of their policies are apporved by the International trade organisation. The use of quotas for development purposes must be nondiscriminatory. Exceptions to the non-discrimina-tion principle, however, are provided in the case of debtor countries which are in difficulty over their monetary reserves and have to use quotas to meet their balance of payments. The Unted Kingdom fought tenaciously for this provision. MR NASH’S HOPES Addressing the final plenary session of the International Trade Organisation Conference at Havana, Mr W. Nash (New Zealand) said: “New Zealand has had many, and may at the present time have some misgivings and reservations. We express none. “Our Government and Parliament will consider the* World Trade Charter not only from the point of view of our people, or of the people of the British Commonwealth, to which we are proud to belong, but in accordance with the purposes of the Charter.” He added that while a large nation like the United States was willing to give millions of dollars to aid other countries, there was great hope and faith in the world.