GENERAL AGREEMENT ON TARIFFS AND TRADE

Transcription

1 GENERAL AGREEMENT ON TARIFFS AND TRADE ACCESSION OF IRELAND RESTRICTED L/79 7 Hay 967 Li raited Distribution Original : English Statement on Trade Policy, Relations and Structure General. The State has an area of 7,000 square miles, a population of,88,000 and a total labour force of,06,000. Its gross national product in 966 "was : ~,065 million or 370 ($,036) per head of the population. The present contributions of the major sectors of the economy are: Percentage contribution to gross domestic product Percentage of total labour force employed icu lture ust ry and construction Services Ul The small size of the home market and the scarcity of natural resources make Ireland heavily dependent on foreign trade. In 966 commodity imports at 373 million were equivalent to 35 per cent of gross national product and commodity exports at 43 million accounted for 3 per cent of gross national product. On a per capita basis, commodity trade (in 966) showed the relatively high averages of 30 (#364.) for imports and 83 (#3) for exports. Trade policy 3. One of the principal aims of Irish Government policy is the expansion of external trade at a rate sufficient to sustain a satisfactory rate of economic growth while maintaining a reasonable degree of equilibrium in external payments. This demands the securing of remunerative outlets foi* Ireland's agricultural products and the development of industrial exports according as the output of Irish 30 6

2 L/79 Page manufacturing industry rises. At the sane tine economic expansion requires a growing volume of imports of capital equipment and raw materials, while an increase in imports of consumer goods is seen as a moans of stimulating a higher degree of efficiency and competitiveness in Irish industry. 4.. A major influence on economic p licy is the Government's objective of achieving membership for Ireland of the European Economic Community at the first appropriate opportunity. Ireland applied for membership of the EEC in 96 and this application has recently been reactivated. The Government is continuing to press ahead with the measures initiated some years ago designed to prepare the economy, mainly through the reorganization and adaptation of the industrial sector, for the conditions which the country will face when membership is achieved. The Free Trade Area Agreement with the United Kingdom (see paragraphs 5 to 9), is regarded by the Government as providing a valuable preparation of the economy for membership of the EEC. Trade relations 5. The United Kingdom is Ireland's principal trading partner. Trading relations between the two countries are now governed by the AngloIrish Free Trade Area Agreement which came into force on July 966, and provides for the establishment of a free trade area over a transitional period of nine years. 6. Special provisions apply to trade in certain agricultural products. Irish store cattle, store sheep and store lambs are guaranteed access to the British market. Britain has undertaken not to regulate imports of other Irish agricultural products except in the context of an intergovernmental commodity agreement or other arrangement for the purpose of orderly marketing which applies also to imports into the United Kingdom from all substantial sources of supply and to British production or marketing of the product in question. Separate provision is made for imports of Irish bacon, cereals and butter into the United Kingdom. 7. An ancillary Agreement relating to Trade in Certain Agricultural and Fishery Products, requires Ireland to maintain continuing access to the Irish market for certain goods excluded from free trade. While specific quantities are indicated in some cases, the broad result is to maintain the position exisiting before the Agreement. 8. Under an Agreement on Store Animals and Carcase aeat, concluded at the same time as the Free Trade Area Agreement, Irish store cattle, store sheep and store lambs which have been fattened for two months on British farms qualify for the

3 L/79 Pago 3 same guarantee payments under the British Fatstock Guarantee Scheme as Britishbred animals. In addition, guarantee payments are extended to Irish exports of carcase meat to Britain up to an amount of 5,000 tons in the case of beef and 5,500 tons in the case of lamb. 9. The Free Trade Area Agreement provides "that the Irish Government may grant additional tariff concessions to goods of Northern Ireland origin. On July 966, import duties on Northern Ireland goods, other than agricultural goods, certain jute products and certain textiles, were reduced b/ 0 per cent as against the 0 per cent reduction applied to boods originating"""in Great Britain. This differential in favour of Northern Ireland goods will be maintained until July 970, after which the position will be reviewed. 0. Ireland also accords tariff preferences to the other countries of the Commonwealth Preference Area and to South Africa. In the case of Canada, Ceylon and South Africa, certain contractual obligations apply. Details of tariff preferences are ^iven in Appendix.. The Treaty of Friendship, Commerce and Navigation between Ireland and the United States contains provision for the mutual granting of mostfavourednation treatment subject to certain qualifications relating to the granting of preferences to countries of the Commonwealth Preference Area. Further details of this provision are included in.appendix, paragraph 7.. Ireland also has trade agreements with a number of other countries which are, with a few exceptions, contracting parties to the GATT. The majority of these agreements are in general terms or specifically provide for the mutual granting of mostfavourednation treatment. Through the application of the specific mostfavourednation provisions of some of the agreements and the operation in practice of the others, Ireland is accorded mostfavourednation treatment in the markets of most of her more important trading partners among the contracting parties to the GATT. 3. Appendix II gives figures of Ireland's trade in 965 and i960 with each contracting party to the GATT and each other country associated with the GATT. Trade structure 4. Ireland's commodity trade is characterized by a heavy of imports over exporte, which over the past decade has varied bwtween 53 million and and 8 million and averaged 05 pillion. The is offset by a surplus on invisible account but this is rarely sufficient to balance the current side of the account, the deficit being generally financed by an inflow of capital. In the last three years these deficits wer^: 3.4 million in 964, 4.8 million in 965 and 6.0 million in 966.

4 L/79 Page A 5. The following table shows the commodity structure of Irish imports and exports in 966: Commodity Composition of Irish and Exports 966 Total Exports m. % m. * i Live animals, food and food preparations Drink and tobacco U Raw materials except fuels Fuels Animal and vegetable oils and fats. 0.9 Chemicals Machinery and transport equipment 88.4 U.7 5 Manufactured goods Parcel post and special transactions U Reexports. 8. TOTAL: On the imports side, the largest category is manufactured goods, followed closely by machinery and transport equipment. Among the more important imports of food and food preparations were: fruit and vegetables,. million; cereals and cereal preparations 5.7 million; and tea 4.3 million. Tobacco imports were valued at 5. million.

5 /79 Page 5 6. The table shows the very important position in Irish exports of live animals, food and food preparations; in 966 this category accounted for over 50 per cent of total exports. The total share of chemicals, machinery and transport equipment and manufactured goods in exports has increased sharply over the past decade, from per cent in 956 to 8 per cent in 966, in keeping with the expansion of manufacturing industry. 7. The geographical distribution of Ireland's external trade in 966 was as follows: Geographical Distribution of Ireland's Trade. 966 Exports Import Excess m.! * m. % m.. United Kingdom EEC Countries Countries of the Commonwealth Preference Area (excl. the UK) United States (incl. US forces overseas) EFTA Countries (excl. UK and incl. Finland) I East European countries Japan Other countries Reimports and temporary exports Tota]

6 L/79 Page 6 The United Kingdom supplied roughly half of Ireland's imports. Next in importance were the European Economic Community countries (5 per cent), the United States (9 per cent) and countries of the Commonwealth Preference Area excluding the United Kingdom (8 per cent). On the export side, the United Kingdom was the principal market, taking 70 per cent of total Irish exports. Other countries were relatively less important as export markets than as^ suppliers of imports. The European Economic Community countries for example took per cent of Ireland's exports, followed by the United States (7 per cent) and countries of the Commonwealth Preference Area ( per cent). 8. The import which is a feature of Ireland's external trade is reflected in the balance with each of the geographical areas but the proportion of exports to imports varies significantly from area to area, as the following table shows: Total Exports to Each Area Expressed as a Percentage of Therefrom 966 United Kingdom EEC Countries Countries of Commonwealth Area (excl. United Kingdom) United States EFTA Countries (excl. United Kingdom but incl. Finland) Eastern European countries Japan Other countries Trade with developing countries % Ireland's trade with developing countries in 966 was imports 36.7 million and exports 8.7 million. The import was thus 8 million and the ratio of imports to exports over 4 :. from developing countries in 966 represented 3 ($35) per head of the population, a relatively high figure by international standards. from these countries have more than doubled over the decade 956 to 966 and their share of total imports is over 9 per cent.

7 L/79 Page 7 Import regime 0. The Customs and Excise Tariff shows the measures in force in Ireland affecting imports of goods. These are revenue duties, protective duties and protective quantitative restrictions.. Revenue duties are imposed for budgetary reasons and apply to a narrow range of commodities, principally tobacco, alcoholic beverages, petrol and oils. In 966 imports of goods subject to revenue duties represented approximately per cent of total imports. The major revenue duties countervail excise duties applied to the corresponding domestic product.. Protective duties are the principal instrument used for the protection of domestic production,.apart from a few revenue duties, it is not the policy of the Irish Government to apply import duties to goods not produced in Ireland. Of the total headings in the Irish Customs Tariff, about 40 per cent are "Free". In 966 about two thirds of total imports were not liable to any duty, and a further 3 per cent were admitted duty free under licence or at a reduced rate, which since July 966, has been 8 per cent ad valorem. 3. Prior to July 966, imports of goods subject to quantitative restrictions represented about 3 per cent of total imports. From that date, however, a number of quota restrictions were withdrawn on a global basis and, as a result, the percentage of total imports subject to quantitative restrictions is now only about per cent.

8 L/79 Page 8 Appendix I TARIFF PREFERENCES. Rates of duty are shown in the Irish Customs Tariff in five columes as follows: (a) Full rate which is the "m.f.n." rate for the purpose of the GATT. (b) Preferential rate, applicable to certain goods grown, produced or manufactured in and consigned from, the British Commonwealth or the Republic of South Africa. (c) Special preferential rate applicable to certain goods grown, produced or manufactured in Canada. This rate also applies to preserved or prepared fruit of Australian or South African origin classified at Tariff Headings Nos. 08.(A)(), 0.06(A)() and 0.06(B)()(a). (d) United Kingdom preferential rate, applicable to most goods grown, produced or manufactured in, and consigned from, the United Kingdom. (e) Northern Ireland preferential rate, applicable to certain goods produced or manufactured in Northern Ireland by a firm which was engaged in manufacturing the same goods in Northern Ireland on March 966, and consigned from Northern Ireland.. Preferences in the Irish Tariff structure originated in the preferential system operated by the United Kingdom. Following the establishment of the State, Ireland was accorded preferences by the United Kingdom and certain countries of the British Commonwealth, and in return Ireland accorded preferences to goods originating in the United Kingdom and other Commonwealth countries. 3. In an Agreement with Canada concluded in 93 Ireland undertook not to charge higher duties on Canadian goods than on the goods of any other country. 4. Under a Trade Agreement with South Africa, also concluded in 93, Ireland undertook to provide specified margins of preference (expressed as percentages or proportions of the full rates) on a narrow range of commodities. 5. In a Trade Agreement between Ireland and the United Kingdom concluded in 938 Ireland undertook certain contractual obligations in regard to the grant of preferences to goods of British origin. These obligations were revised on the entry into force of the AngloIrish Free Trade Area Agreement on July 966, and those now applying are set out in paragraph 9 below.

9 L/79 Page 9 6. Between 938 and 950 the general practice when imposing new duties was to provide for a general preferential rate applicable to the goods of all Commonwealth countries. 7. In 950 a Treaty of Friendship, Commerce and Navigation was concluded with the United States. The Treaty provided for the mutual granting of mostfavourednation treatment. It was also provided, however, that the mostfavourednation provisions would not apply tc advantages accorded by Ireland to member countries of the British Commonwealth. It was further provided that so long as the United States might be required by the GATT not to increase preferences, the advantages referred to should be nogreater than those in force on the date of signature of the Treaty, or provided for ï : '«. in Article (3) of the Trade Agreement of 938 with the United Kingdom*".... Following the conclusion of the Treaty with the United States new preferences, where provided, were accorded to goods of United Kingdom and Canadian origin only, the full rate applying to goods from all other countries. 8. A Trade Agreement with Ceylon, concluded in 953, provides that each Government undertakes to continue to grant the other preferential tariff treatment. 9. Under the AngloIrish Free Trade Area Agreement, which entered into force on July 966, Ireland has undertaken the following commitments in regard to the maintenance of preferences in favour of the United Kingdom: (l) Where licences are issued for the admission of dutiable goods free of duty or at a rate of duty less than that ordinarily chargeable, the goods are admitted free of duty if they originate in the United Kingdom. If they originate in a noncommonwealth country, they are subject to the following minimum duties, unless they are of a class or kind of which supplies are not for the time being available in the United Kingdom: (a) Goods included in Annex A to the Free Trade Area Agreement 0 per cent ad valorem (or an appropriate rate of specific duty) until 30 June 97. (b) Goods not included in Annex A to the Free Trade Area Agreement (i) raw materials, materials for further processing and essential equipment for industrial undertakings duties of 8 per cent ad valorem to 30 June 967 and 5 per cent ad valorem from July 967 to 30 June 969 (ii) Other goods duties of 8 per cent ad valorem to 30 June 969, and of 5 per cent ad valorem from July 969 to 30 June 974

10 L/79 Page 0 The preferences at (b) do not apply to goods which were subject to quantitative import restrictions in December 965 and in respect of which any import duty chargeable was remitted in full or in part by import licensing. () Ireland has undertaken that up to July 975, she will not produce the rate of customs duty charged on completely assembled private motor cars imported from outside the United Kingdom to a rate less than 0 percentage points above the rate charged on similar British cars. 0. The Trade Agreement with Canada referred to at paragraph 3 above is at present being renegotiated to take account of the new situation created by the entry into force of the AngloIrish Free Trade Area Agreement.

11 Appendix II IRELAND Traie with GATT Countries 965 and 966 U'000) Country (D () 965 imports (3) Import (4) (5) 966 exports (6) import (7) Contracting Parties Australia Austria 3arbados Belgium f Brazil Burma f I Burundi Cameroon Canada Central African Republic Ceylon Chad Chile Congo (Brazzaville) Cuba Cyprus, Czechoslovakia ' Dahomey Denmark Dominican Republic Finland France ; 3, , ,7, ,787 5,440 0, , , ' _ 45 5,664,9/ , , " _ 3,34 5,95 5,00 4, , , l ' ,7 5,35 8, , _,9 _ 337 _ 43 3 ' G 7,3 4, , _ 7, ,75 5,7 974

12 Country () Contracting Parties (cont'd) Gabon Gambia Germany (Fed.Rep.) Ghana Greece Guyana Haiti India Indonesia Israel Italy Ivory Coast Jamaica Japan Kenya. Korea, Republic of Kuwait Luxemburg Madagascar Malawi Malaysia Malta Mauritania Netherlands New Zealand Nicaragua Niger Nigeria (Fed. of) () 3,876, , , , _ 0,6, Î Exports I (3) Import (4) (5) 966 iexports I (6) Import (7), , , ,063, , , , , ,740, ,99 6,445 4, , ,97, , ,6 85, , ,03, ,966 6,3', 3, , ,

13 Country (D Contracting Parties (cont'd) Norway Pakistan Peru Portugal Rhodesia Rwanda Senegal Sierra Leone South Africa Spain Sweden Switzerland Tanzania! Togo Trinidad and Tobago Turkey Uganda 'United Kingdom United States Upper Volta Uruguay Yugoslavia Countries which have provisionally acceded Argentina Iceland Tunisia United Arab Republic 965 Exports (3) ,704, ,9 9, Import (4),03, , , ,850 0,86 8, (5) ;59, ,660,063 5,088, ,97 34, , Exports (6) J ,999 6, Import (7) L > J_/,.l, ,495,79 4, ,98 8, ,

14 Country () () 965.Exports (3) Import (4) (5) 966 licports (6) Import (7) P \ OP JO CD O vd "Special arrangeraent" countries Cambodia Poland Countries maintaining a de facto application of the GATT Algeria Botswana Congo (Leopoldville) (Dem. Rep.) Lesotho Maldive Islands Mali Singapore Zambia ; , , ,