B - The Framework of International Trade

Summary

European Community offer on trade relations with the United States, 11 June 1971

In the second round of the consultations between the European Community and the United States, Professor Dahrendorf, the European Commissioner for external relations and trade, has put forward an offer on the Community's behalf for a settlement of relations with the United States in the sensitive sector of agricultural produce. The offer, a unilateral and unconditional one, is designed to ease relations in four hitherto very much argued-over fields, namely poultry, lard, tobacco and oranges.

The offer concerns a number of agricultural products, and primarily citrus fruits, on which the Community rate of duty will be reduced from 15% to 8% for certain important months; the great bulk of American exports will be thereby favoured. Then again, binding assurances are provided on tobacco, to obviate alleged potential injury to the United States, and in addition there are to be arrangements which will enhance the United States' competitive position in non-Community markets with regard to poultry.

Professor Dahrendorf said that the offer which was the outcome of intensive and protracted negotiations within the Community, was made in token of the declared political intention to break the long log-jam in the sectors concerned. The intra-Community negotiations had been opened and conducted by the Commission acting through its Director-General for external trade, Mr. Hijzen. Professor Dahrendorf emphasised that the offer was so framed as to ensure that its operation would not be at the expense of the associated Mediterranean countries: the Community accepted that any sacrifices involved should be made by itself.