INFORMATION FOR TBS FOURTH REPORT UNDER ARTICLE XIV :1 (g) FRANCE. Statement of 7 July 1953 in reply to Questionnaire in L/69

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1 INFORMATION FOR TBS FOURTH REPORT UNDER ARTICLE XIV :1 (g) FRANCE Statement of 7 July 1953 in reply to Questionnaire in L/69 RESTRICTED (Translation) Import restrictions at present in force in France are dictated exclusively by the balance-of-payments deficit between the franc area and foreign countries. The structure of the restrictive system and its inevitable discriminatory aspects are therefore governed by the varying acutenesscf unbalance prevailing in relation to the different currency areas. All imports are carried out under the licence system. A Decree of 13 July 194-9, published in the Cfficial Bulletin of 14 July 1949, regulates the issuance of import permits. Note N 483 of the Foreign Exchange Control Board, published in the Official Bulletin of 4 January 1950, fixes the administrative machinery by which they are allocated. The ceilings for prospective imports are fixed for a specific period within the frame of programmes. The latter, drawn up according to the requirements of French economy, and to the currency available, are essentially intended to obviate speculative operations IT squandering of currency, and to keep imports within the limits of financial means. Authorized imports fall into three categories: (1) Imports payable in dollars. (2) Imports payable in EPU currencies. (3) Imports pay Vole in other currencies. In 1952, imports payable in dollars amounted to approximately 13 per cent, imports payable in 2FJ currencies to 54 per cent, and imports payable in other currencies to 11.5 per cent of global imports. Question 1 - Technique of Restrictiene Since measures for the liberalization of trade were suspended as a result of the increase in the French deficit within the 3PU, no imports may be introduced without a licence. Purchases of coal and steel products from the member countries of the ECSC (European Coal and Steel Community) are carried out since the opening of the common marheo under licences issued automatically belonging to the category under paragraph (1) of the questionnaire. Sec/52/53

2 - 2 - The majority of imports are carried out, subject to the procedures indicated below, under the licence system described under paragraph (iii) of the questionnaire, whether they be global quotas allocated to supplier countries in proportion to the imports carried out during a representative period, quotas fixed in advance within the scope of a purchasing programme, or quotas fixed within the frame of bilateral agreements. Prohibitions are extremely rare, and are actuated exclusively by safety or health motives, and correspond to the exceptions referred to in Article XX of the General Agreement. By waivers to the general system of issuing licences, based on quotas fixed within the scope of purchasing programmes or trade agreements, permits may be issued for operations outside quotas, and which would come under paragraph 5 of the questionnaire. These are: (a) imports carried out "on account EFAC" or "10 per cent equipment"; (b) Imex and Exim operations; (c) compensation operations. Question 2 - State-Trading Imports carried out under the system of state-trading, properly speaking, either through a government department or by public agencies amounted in 1952 to 11*17 per cent of the global imports from abroad. The following goods were imported under this sytem: Cereals Raw and manufactured tobacco Gas Illectric power Gold and its alloys Natural and refined methyl alcohol Powders, explosives, matches Railway transport equipment for tracks over 60 centimetres wide, and spare parts Vdar arms and munitions. There are, in addition, private agencies, purchasing or import groups to whom the government grants import privileges, under the control of the competent ministry concerned. In 1952, these groups accounted for 32.4 per cent of the total imports from abroad.

3 - 3 - The following products were imported by these groups: Butter Cheese Cereal flours Oil seeds and liquid oils Solid mineral fuels Petroleum products Silver Plat inum Copper Tungsten Opium Newsprint Extracting and excavating machinery and equipment Special engines for locomotives and electric railway engines Frequency transformers Various electric signalling, telegraphic and telephonic, radiotélégraphie equipment, etc. Narcotics Antibiotics Sheet-iron. Purchases direct by the State or by purchasing groups are an integral part of the various import programmes and arc consequently subject to the same restrictions as purchases carried out by cor.r.iercial firms. Question 3 - Basis of Restriction Only the goods from member countries of the OSEC which are included on the trade liberalization schedules may come under the shares of quotas allotted to supplier countries on the basis of previous representative periods. This selected representative period in the first half year of Question 4 -.action to avoid damage to the trade of other contracting parties The French Government has always been concerned to avoid damage to the trade of other countries. r Z.sfollowing measures are designed to safeguard the trade interests of her partners: A. I. Imports of goods in small commercial quantities is possible: (a) under the system of EFAC accounts (exports, accessory costs); 'b) under the item: "Various", inserted in all trade agreements.

4 - 4 - II..France signed the Convention of 1923 relating to the Simplification of Customs Formalities for the temporary introduction of samples of commercial value. She uses elasticity and a certain liberality in applying the clauses of that Convention In addition, France signed the Convention on oampl'es (GATT - G/33) of 5 November The UNESCO Convention on circulations.of books is at present before the National Assembly for ratification. III. Imports of patents are subject to the Act of 1883, amended by the Act of 7 April 1902, and that of 27 January 1944, confirmed by the Act of 7 July The system of foreign commercial or industrial trademarks is based on the Act of 23 June 1857, amended by that of 3 May 1890 and of 26 June B. The allocation of shares in purchases amongst the member countries of the OEEC complies with the pattern of trade, by taking the first half-year of 1951, selected as normal. Needless to say, the interests of partners are respected to the utmost in all trade agreements which are negotiated. Question 5 - Policy of Discrimination Discriminations which are the inevitable accompaniment of restrictions on imports are in direct ratio to the balance-of-payments of France vis-à-vis each of the great currency areas. The general purpose is to derive the greatest possible trading benefit from the available resources in currency. The policy followed by France is guided minutely by the principles of Article XIII of the General Agreement, and, in particular, sub-paragraphs 2 (b) and (d) of the Article. The total volume of French imports from abroad amounted to: 792,400 million francs in ,297,502 million francs in ,231,585 million francs in ,729 million francs in the first quarter of The following table shows the share of each currency area, within the general framework of French imports. These are averages, calculated on the basis of the monthly averages, for the years 1929, 1938, 1951 and for the first and second quarters of 1952 and first quarter of 1953.

5 - 5 - Imports (I) 1952 (II) st quart Dollar area 15.5 % 14.7 % 14 -/, 15.4 % % EFU area 52.5 % 44.1 c /o 53.5fe 51.4 % 53.4 % 53.5 % Other areas 19.9 % 14.2 % ll.7 yo 12.3 c jo 10.7 fo 10.8 % Overseas territories 12.1 io 27 % " 20.9 c /o 24.7 % 23.7 # 100 Io 100 fo /o 100 # 100 % Question 6 - Considerations affecting Source of Imports Distribution of French imports according to the various currency areas, which is governed by a more or less acute baiance-of-payments deficit vis-à-vis certain areas, has as its corollary that the part played by solely commercial considerations in fixing quotas is reduced. Within the scope of the various import programmes, only considerations of quality, price and conditions of delivery dictate the importers' choice. Question 7 - Import Arrangements with other Countries The following is a list of the chief trade agreements signed between the French and other governments, and which are at present in force. Full statistical data on trading with the countries concerned are to be found in the "otatistique Mensuelle du Commerce extérieur de la France" (Monthly Statistics for the Foreign Trade of France) published by the General Customs Directorate at the Ministry of the Budget. COUNTRIES EUROPE Germany Austria Benelux Denmark Agreement of 24 January 1953, extended on 30 May 1953, valid for second and third quarters 1953 Agreement of 18 January 1952 extended to 30 June New agreement. Convention of 13 May 1953 valid for second Convention of 29 April 1953 valid for second Moniteur Officiel du Commerce et de l'industrie, 25 June 1953 In course of negotiation MOCI 21 May 1953 MOCI 14 May 1953

6 Spain -. Finland U. Kingdom Greece Ireland Iceland Italy Norway Netherlands Poland Portugal Sweden Switzerland Hungary- Czechoslovakia Yugoslavia Turkey Iran Rhodesia Agreement of 8 November 1952 valid from 1 November October 1953 Joint Commission of ZO February 1953 Convention of 10 May 1952 still in force Convention of 1 April 1953 valid for second Agreement of 23 December 1953 valid 2 January - 31 December 1953 Agreement of 21 May 1953 valid 1 June May 1954 Agreement of 2 May 1953 valid second and third quarters 1953 Agreement of 5 June 1953 valid second and third quarters 1953 Convention of 18 April 1953 Convention of 22 May 1953 valid for second Convention of 15 April 1953 valid for second Agreement of 15 June 1953 Convention of 12 May 1953 valid for second Convention of 21 April 1953 valid for second Agreement of 11 April 1953 valid for second Agreement of 9 April 1953 valid 1 March February 1954 Agreement of 16 June 1953 valid 1 July June 1953 Agreement of 28 August 1952 valid 1 September August 1953 AFRICA AND ASIA MINOR Agreement of 21 March 1953 valid to 20 March 1954 Convention of 5 August 1952 in course of extension for 1 year MOCI - 13 November 1952 " - 12 March 1953» - 22 May 1952 " - 23 April 1953 " - 1 February 1953 " - 18 June 1953» - 21 May 1953 " - 18 June April 1953» - 4 June 1953 " - 23 April 1953 Not yet published it. ft it MOCI - 7 May 1953» 23 April 1953» 16 April 1953»' 26 June 1952» 11 & 25 Sept MOCI - 25 June 1953 Not yet published

7 - 7 - Belgian Congo Convention of 29 May April - 30 September 1953 MOCI - 21 May 1953 Egypt Israel Convention of 9 June 1948 extended to 8 June 1954 Not yet published Convention in course of negotiation at present Not yet published FAR EAST Indonesia Protocol of 30 April May "April 1954 MOCI - 7 May 1953 Pakistan Agreement of 27 April 1 January October 1953 " - 7 May 1953 Question 8 - Import Programmes for ) Imports payable in dollars Licenses for imports payable in dollars are issued on the basis of an indicative purchasing programme covering one year, from 1 July to 30 June. The programme for the period beginning 1 July 1953 is in course of preparation. Products for which licences may be granted are notified to those concerned by the channel of notification to importers published in the "Journal Officiel" or the "Moniteur Officiel". 2) Imports payable in 5FU currencies The programme for these imports has now been prepared for a period of 6 months. The latest, which is at present in operation, is valid from 1 April to 30 September Methods for reception, inspection and issuing of import permits were described in an interministerial notice to importers published in the Journal Officiel of 5 April Importable products fall under three headings: (a) irreducible; (b) traditionally ex-liberalized; (c) traditionally under quota. At the Eighth Session of the GATT, the French Delegation will be in a position to supply the delegations concerned with full details of this programme.

8 - 8 - The. ceilings for imports of products in the sector "irreducible" are fixed in the same way as products payable in dollars: quotas are fixed within the limits of a purchasing programme and the scheaule of products liable to be imported under that sector is published as a notification to importers. Regarding imports of products under the sector "traditionally ex-liberalized", licences are at present granted within the frame of global quotas. The latter are allocated amongst member countries of the OPEC on the basis of imports carried out in the first half-year of Licences for imports of products belonging to the sector "traditionally under quota" are issued according to quotas fixed wiuhin the fr^me of bilateral agreements, concluded for 6 months, on the basis of the volume of trade fixed in the last bilateral agreement before the coming into force of the restrictions. Coal and steel products from the member countries of the European Coal and Steel Community are imported under the system of automatic licences. The evolution of the situation of France within the EPU has brought about a lowering of the ceiling of global half-yearly trading with the member countries of EPU. The ceiling had to be reduced from 130 to 116 million units. In the economic interests of the supplier countries and insofar as possible to avoid a reduction in imports of products belonging to the sectors which are customarily affected in the first degree by restrictions, i.e. the "traditionally under quota" and the "traditionally ex-liberalized", France took care to apply the reduction to the "irreducible" sector, the ceiling of which was reduced from to 86.6 million units, whereas the sectors "traditionally ex-liberalized imports" and "imports traditionally under quotas" were maintained at the level of the past half-year, i.e. at 11.4 and 18 million units. 3) Imports payable in currencies other than dollars and EFU currencies Imports from these currency areas may be subdivided into: a) imports from countries to which France is bound by bilateral agreement. Licences for these imports are granted to the value of the ceiling indicated in each agreement for each product. b) Imports from countries to which France is not bound by bilateral trade agreement. When there is a currency agreement, licences are issued within the limits of a purchasing programme, fixed for a period of six months. This System is applied at present to the following countries: Ecuador, Chile, Uruguay, Paraguay, Peru, Mexico, Venezuela, Colombia and Japan. When there are neither trade nor currer y agreements, trade is confined to barter operations. Continental China, Argentina and the U.S.S.R. are in this category.

9 - 9 - Question 9 - Incidental Protective Effects of Restrictions Whenever available currency resources permit, the system of restrictions is readjusted. Imports of goods outside quota in small quantities are authorized: a) under the system of EFAG accounts; b) under the item "Various" included in each trade agreement. Moreover, the provisional character of the restrictive system is obvious, and far from imagining they are protected from foreign competition, French industrialists are well aware of the fact that French economy will develop along the lines of greater liberalization as soon as recovery in the balance of payia-^ta permits.