asked the Taoiseach if he has noted that it is the intention of the European Economic Community to extend the tariff reduction coming into force in the Community on 31st July next to other countries which are members of GATT; and, since Ireland is not a member of the latter organisation, if he will indicate the effect of this move on the Irish economy; and if he would consider it advisable for this country to seek membership of GATT forthwith.
Ceisteanna—Questions. Oral Answers. - European Economic Community: Tariff Reduction.
On the 24th November last, the Council of the European Economic Community decided that Member States of the Community would be free to extend, on a provisional basis and for an indeterminate period, to contracting parties to the GATT, and to other States benefiting from the most-favoured-nation clause, the tariff reductions on industrial products which they will grant to each other on the 1st July, 1960, provided that these reductions do not bring the duties below the common external tariff. As a country receiving most-favoured-nation treatment from the individual States of the Community, Ireland could expect to benefit from any extension to third countries of the tariff reductions in question. However, the decision taken by the Governments of the Community last week regarding the acceleration proposals also bore on this matter and placed emphasis on the reciprocity aspect, but I have not sufficient information available at the moment to enable me to evaluate the full significance of this decision as it affects the arrangements envisaged last November.
With regard to the question of Ireland's adherence to the General Agreement on Tariffs and Trade, the Deputy will recall that, in the course of the Adjournment Debate on the 26th April, I indicated that the Government were considering whether our interests would not be served by joining the GATT. This question is still under examination. I may add that we are represented by observers at the annual session of the GATT, which opened in Geneva this week.
Could the Taoiseach tell the House if the fact that we enjoy the most-favoured-nation clause places us in an advantageous position vis-á-vis the GATT nations or is the position otherwise?
I am afraid I do not understand that question.
I shall repeat it. The Taoiseach has stated in the course of his reply that Ireland would have the benefit of the most-favoured-nation clause for anything that the six nation Economic Community have to offer, whereas it is also extended to GATT. Does that most-favoured-nation clause give us the same benefits as the GATT nations or not?
What I said was that the Council of the European Economic Community decided in November last that the reductions which were due to be made in their internal tariffs on the 1st July could be extended by these six countries to other countries including members of the GATT and countries which enjoy most-favoured-nation rights with them. As a country which has most-favoured-nation rights with these countries we could, therefore, expect to benefit by these tariff reductions on the basis of that decision taken last November. As I pointed out, however, another decision was taken by the Council of the Economic Community last week to accelerate the rate of their tariff reductions. That decision appears to imply that the extension of the benefits of these accelerated reductions to other countries will depend to some extent on these countries being willing to give reciprocal benefits to Common Market exports.
I appreciate the Taoiseach's reply but can the Taoiseach answer the question or not? Does he know? It is quite possible he does not know. Does he feel that we shall get the same benefits as the GATT nations, although we are not a member of the GATT group, because of the most-favoured-nation clause? If I cannot get an answer to that——
As far as the decision of the European Economic Community Council of November last is concerned, it appeared to imply no distinction between countries in the GATT and countries outside the GATT which have a right to most-favoured-nation treatment.
In order to give the House an idea of what the GATT trading position is, would the Taoiseach tell the House how much of world trade the GATT nations handle?
Surely that is a much wider question?
They handle about 80 per cent. of it and that shows how important it is.
The majority of the industrial countries of the world are in the GATT.
The Taoiseach should take cognisance of that.