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Joint Committee on the Secondary Legislation of the European Communities díospóireacht -
Wednesday, 19 Dec 1979

Generalised Tariff Preferences Scheme for 1980.

The next report is the usual one each year with regard to the Community's Generalised Tariff Preferences Scheme. This is a scheme whereby the Community helps developing countries by granting tariff preferences on certain finished and semi-finished products originating in those countries. We are coming to the end of the first ten years of the scheme. This proposal deals with 1980. We believe new guidelines will be coming forward shortly for the decade to come. There are no real problem areas for us.

There is some improvement in Community access for certain agricultural goods, basically those that are Mediterranean in character. Such products include dried bananas, pineapples and palm oil. That will not affect us; in fact, it might help us. Some misgivings had been expressed by the Irish tobacco industry because there was a modification in the tariff arrangement but a compromise was agreed and this was acceptable to the industry.

There was some concern about textiles and the Multifibre Agreement. An interesting aspect was that the People's Republic of China applied for inclusion under this scheme. We were interested to note that they were classified as a less developed country. The Commission concluded that having regard to basic economic factors. We were worried that sensitive products, such as footwear, transistors and so on might qualify for preference but these are not involved. We were also worried about chipboard in view of the fact that this industry here is having some difficulties but we gather that exports from China will not arise.

Like the Skibbereen Eagle, we should keep our eye on China. The EEC is planning a ten-year programme.

Only 2 per cent of exports from China will qualify for preference.

That could amount to considerable exports.

Another aspect we should watch is that concerning a country like Yugoslavia where there is a bilateral arrangement already. Yugoslavia is looking for increased concessions. They have a 2,000 million UA balance of payments deficit with the Community and some 20 per cent of the country's invisible earnings are derived from emigrants' remittances from within the Community. Developments will take place there. Clearly this will be a continuing facet of the Community's organic development. Obviously some concessions from Yugoslavia would suit us, given that we are moving towards the accession of Greece. Various countries will qualify under the Generalised Tariff Preferences Scheme as this organic expansion takes place.

With regard to the difficulties of businessmen in following the ramifications of the many bilateral and multilateral agreements, we felt there should be an opportunity to bring the Irish industrialists together and to meet the people who are up-to-date on what is happening with regard to trading agreements. These would include people in the Departments concerned and the CII. There could be consultations on this matter at a seminar or conference. We did not spell it out quite like that but that is what we meant when we spoke about initiating consultations on these matters.

The first sentence of paragraph 10 of the report is most important. It states " The Joint Committee trusts that the Commission guidelines for a new GTP scheme will seek to ensure that it is the least developed countries which obtain the most benefit." We get a long list of countries that get a blanket preference and included in the list are countries whose economic status is changing very dramatically. Taking up the point made when we were in private session, I am sure I am speaking for the Committee when I say that I do not think we would be giving the leadership we should give if our sole concern was to see that raw materials were cheap for Irish industry. We are entitled to pursue the concern we feel about having a dynamic policy with regard to assisting those parts of the world that are in real need of assistance. Rather than our saying " yes " to everything, perhaps we should have a deliberate policy of trying to select where we think the need is greatest.

We discussed this matter in the light of the Korean analogy. Korea also qualifies under the generalised tariff preferences scheme. Korea could hardly be called a less developed country now. To remind ourselves of the magnitude involved, it is worth mentioning that these preferences affect only 0.4 per cent of Irish imports.

So this economy is giving very modest assistance?

Yes. We gave similar concessions before we joined the EEC.

Paragraphs 1 and 2 agreed to.

PARAGRAPH 3.

I move:

To add after the first sentence in paragraph 3 the following:

" The Joint Committee is indebted to Senator Mulcahy and his Sub-Committee for their work ".

Amendment agreed to.
Paragraph, as amended, agreed to.
Paragraphs 4 to 13, inclusive, agreed to.
Appendix agreed to.
Draft Report, as amended, agreed to.
Ordered: To report accordingly.
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