WORLD TARIFFS

Otago Daily Times, Issue 26623, 20 November 1947, Page 4

WORLD TARIFFS

DECISIONS AT GENEVA EFFECT ON NEW ZEALAND NO CHANGE IN BRITISH PREFERENCES Special to the Daily Times WELLINGTON, Nov. 19. Details of New Zealand’s tariff agreements with the United Kingdom in view of the recent decisions made at Geneva were released yesterday in the House of Representatives. No change has been made by the United Kingdom ,in existing preferences for New Zealand butter, cheese and other milk products, apples, pears, and seeds. For beef, veal, mutton, lamb, pork, and bacon, the preferences for which before the war were put in quotas rather than tariffs, it is intended that such preferential arrangements should be replaced by tariffs and that negotiations to that end should take place as soon as practicable. , . “ Six countries have already signed the agreement,” said the Minister of Industries and Commerce, Mr Nordmeyer. “They are Australia, Canada, France, Britain and the United States, and a group of three who are classed one—Belgium, Luxemburg, and the Netherlands.” Extension to Other States “ it should be made clear that this schedule represents the tariff treatment which we shall extend to the commerce of all other contracting States if and when New Zealand ratifies the agreement,” said Mr Nordmeyer. The agreement made at Geneva requires the endorsement of the respective Governments concerned, which, however, are not committed until their acceptance is notified. The agreement will ycome into force 30 days after acceptance is notified, but Australia, Belgium, Luxemburg, the Netherlands, Canada, France, the United Kingdom, and the United States, described as “key” countries, are empowered to give provisional application to it on Jahuary 1, 1948, and have already signed the agreement. . „, An important provision is contained in Article 29 of the agreement to the effect that on the day on which the charter of the International Trade Organisation comes into force the articles in the agreement relating to the provision of most favoured nation treatment will be suspended and superseded by the corresponding provisions in the charter. In particular, this article provides that margins of preference shall not be increased beyond the levels of those resulting from the negotiations or, where items were not subject to negotiation, the maigins obtaining on a base date, which for New Zealand has been fixed at April 10 1947. A contracting party may withdraw from the agreement on or after JanuNo change has been made in existing preferences on butter, cheese, condensed milk, whole, sweetened, or unsweetened; milk powder and other preserved milk, not sweetened, apples. U< As S ’far G as beer, veal, mutton lamb pork and bacon are concerned, it is the intention, without prejudice to any action which might be necessary to give effect to inter-Governmental commodity agreements, that preferential arrangements should be replaced by tariff preferences. A preference of 10 per cent, is proposed to be eliminated in respect ol dried apples, pigs, tongues (preserved in airtight containers) and hog casingsof a value not exceeding £lO a cwt Instead of a duty of 7s a cwt. foreign honey is to be subject to a duty of 3s 6d a cwt, or 10 per cent., whichever is greater, but not more than os a cwt. Concessions Some of the main concessions are:— Frozen' Meats. —France: Mutton and lamb, from 50 per cent, to 35 per cent.; beef, veal and pork, from 50 to 40 per cent. India: Frozen meats generally, from 30 to 20 per cent. Canned Meats.—France: From 60 to 35 per cent. India: From 30 to 20 per France and India: From 30 to 25 per cent. South Africa: Hold it 2d per lb. Cheese— Belgium, the Netherlands and Luxemburg: Hold at 15 per cent France: Reduced from 20 to 15 per cent. India: From 30 to 25 per cent. China. From 35 to 30 per cent. Condensed Milk, UnsweetenedFrance: Hold at 10 per cent. China: Reduced from 25 to 20 per cent. India: From 30 to 25 per cent, Sweetened— France: Hold at 10 per cent. China. Reduced from 25 4o 20 per cent. India: From 30 to 25 per cent. Wool.-r-Free entry bound into B-..-gium, the Netherlands, Luxemburg France Czechoslovakia, South Africa and India. Duty reduced: China, fron 10 to Vj per cent. Brazil, for greasy wool over 50’s a slight reduction Hides and skins, sheepskins, pelts rabbit skins, sausage casings, casein, tallow, grass and clover seeds, rennet, kauri gum: Binding of existing free entry and where dutiable more favourable treatment in many cases. New Zealand’s Concessions Offers of concessions by New Zea land come under three headings:— First: Offers involving a reduction in duty. , , ... Second: Offers involving the holding of existing rates against increases. Third: Offers affecting margins of preference only, without commitments as to rates of duty. The lists cover a wide range ol articles. For instance, New Zealand has offered concessions on various dried fruits, some drapery items, linoleum wool textile piecegoods. clocks cameras certain industrial machinery artificers’ tools and motor vehicles Motor vehicles in completely knockeudown condition will still be covered by the British preferential tariff of 5 per cent., but the most favoured nation tariff will be 40 per cent, com pared with the existing general tariff of 50 per cent. For other motor vehicles the existing 15 per cent. Brit-

ish preferential tariff remains, but the most favoured nation rate will be 50 per cent., compared with the existing 60 per cent. Articles on which New Zealand binds herself against an increase in duties include cocoa, dates, rice, starch, carpets, many articles of clothing, and farm implements. The third list includes coffee, tea in bulk, ready-mixed, paints, engines foi motor vehicles, bicycles and spirits.