asked the Taoiseach what impact the recently formed European Free Trade Area or Outer Seven is likely to have on the ability of this country to expand its exports of agricultural and industrial products to Great Britain.
Ceisteanna—Questions. Oral Answers. - Exports to Britain: Impact of Trade Areas.
1.
It is difficult to assess with any accuracy the probable effects on exports from this country to Britain of the establishment of the European Free Trade Association.
As regards industrial goods we at present enjoy duty-free entry to the British market in respect of a wide range of products. For the most part the same products from the other six members of EFTA are at present, on import to Britain, subject to duty. The advantage we thus enjoy in respect of these exports will become progressively less according as Britain, beginning on 1 July next, gradually reduces over the next 10 years, and finally eliminates on 1 January, 1970, the duties to which such imports from those countries are subject. In cases where quota restrictions on the goods of member countries of EFTA are relaxed as a result of the EFTA Convention our exports to Britain could also be affected. We must therefore expect our industrial exports to Britain to meet progressively stronger competition from the other members of EFTA, whether or not we are associated with that group.
The position in regard to agricultural goods is different. Generally speaking, the EFTA Convention does not involve the elimination of trade barriers in respect of agricultural products as defined in the Convention. It does, however, envisage the conclusion of agricultural agreements between two or more member States "in order to facilitate the expansion of trade in agricultural goods"; and any provisions regarding tariffs contained in such agreements will apply in favour of all other member States. Britain has made such an agreement with Denmark which will affect preference margins we have hitherto enjoyed in respect of bacon, canned cream and blue-veined cheese.
When the Taoiseach speaks of EFTA does that mean the Common Market or the Outer Seven?
The European Free Trade Association—the Outer Seven.
Are there any steps we might usefully take at this juncture to make ourselves better prepared for this eventual lowering of tariffs by the Outer Seven?
I think there are, but that would be a very wide issue to deal with in replying to a supplementary question.