GENERAL AGREEMENT ON 4 February 1970 TARIFFS AND TRADE Limited Distribution

Transcription

1 RESTRCTED GENERAL AGREEMENT ON 4 February 197 TARFFS AND TRADE Limited Distribution Special Group on Trade in Tropical Products NTRODUCTON RECENT MARKET DEVELOPMENTS AND COMMERCAL POLCY CHANGES RELATNG TO SELECTED TROPCAL PRODUCTS Note by the Secretariat 1. t may be recalled that at the first meeting of the reconvened Special Group on Trade in Tropical Products in January 1968 it was agreed that for purposes of preparatory work and in the formulation of proposals, priority consideration should be given to the problems affecting six product groups, i.e. coffee, cocoa, tea, vegetable oilseeds and oils, bananas, and spices. To facilitate the task of the Special Group in examining the issues involved, the secretariat prepared a paper (SGTP/5) setting out trends in production, trade and prices of the six items and tariff and non-tariff barriers maintained in the main importing markets. n November 1968, the secretariat issued a note (SGTP/1) outlining data relevant to the trade problems of the six products. At the request of the Committee on Trade and Development (COM.TD/65, page 2) the secretariat prepared a note (SGTP/ll) devoted to certain vegetable oilseeds and oils of special export interest to developing countries. This study was discussed at a meeting of the Special Group in May The present notch describes recent developments in the markets for the six product groups. The note also includes a section on commercial policy changes in some of the main importing countries and on international consultations related to these products. Annex Tables - contain statistics on movements in export earnings, trade and prices. 3. Material for the commodity notes has been drawn inter alia from FAO sources, in particular "Commodity Review and Outlook " and various issues of the Monthly Bulletin of Agricultural Economics and Statistics. DVELOPMENTS N PRODUCTON. Coffee TRADE AND PRCES 4. World production of coffee, after reaching an all-time record of about 5 million tons in 1965/66, was substantially lower in the three following seasons. There was a fall of 1 per cent in world output in 1968/69 largely as a result of the poor crop in Brazil, the lowest for twelve years. Production in African countries and ndonesia which had recevered strongly in 1967/68 registered a slight rise in 1968/69.

2 Page 2 5. The volume of coffee exported br members of the nternational Coffee agreement - which practically amounts to world exports - increased by 9 per cent in the 1967/68 season to a record level; exports to quota markets increased by 8 per cent. The record volume was attributable to the need to replenish stocks in several importing countries. The increase in trade was reflected in increased imports in 1963 into almost all the main markets. The United States reversed the almost continuous downward trend in imports sinco 1962 and reached a record figure. Shipments into EEC countries, particularly the Federal Republic of Germany and France, and by Sweden and the United Kingdo,,, rose markedly. There was little increase in sales to Canada Or Australia. Among new markets Japan and South Africa both imported increased quantities, as did the USSR. 6. The value of world trade in 1968 recovered to some US$2.3 billion, much the same figure as in Am increased volume of ex-ports from the major Latin American exporters offset the decline in the unit value of their exports while larger shipments from Africa were accompanied by a general rise in the unit value of exports. 7. Exports during the early part of 1969 were generally running at lower levels than a year earlier. mports into the United States declined while stocks remained high. 8. The annual averages of the daily prices recorded by the ntern :tional Coffee Organization for four groups of coffee showed little change in 1968 compared with the previous year Prices of most coffees declined throughout the first half of 1969vv, partly because of the continued high level of stocks, partly because of the volume of coffee which enters trade outside quotas. A marked upward trend in prices began however around mid-year following frosts in Brazil. Cocoa 9.. World Production of cocoa during the 1967/68 crop year amounted to almost 1.35 million metric tons i.e..5 per cant more than in the preceding year. Although production in Brazil was 15 per cent lower, other producers in Latin America increased production by 11 pg;' cent. Production in Ghana rose by 1 per cent but Nigaria's output delined by 12 per cent. Expctations of increased world production in 1968/69 were not realized as heavy and persistent rains in Africa affected both crop yields and harvesting. World production was estimated at 1.23 million toils, reflecting mainly th, reduced crops in Africa. The 1969/7 crop may show a better yield provided climatic conditions in the main producing countries remain favourable, but a deficit of supply in relation to demand is expected. 1. The quantity of cocoa beans entering international trade declined for the third consecutive year in mports contracted by 8 per cent reflecting primarily a reduction of some 19 per cent in the United States and marked decreases in purchases by France, italy and the United Kingdom. As a result of prices being

3 Page 3 2 per cent higher than in 1967, the losses in export volume in 1968 were more than outweighed and according to FAO data the world export value of cocoa beans and products rose by about 7 per cent. 11. The relatively low level of production in two consecutive years was one of the main causes of the sharp rise in prices. Quotations on the New York Exchange in 1968 averaged 31.5 cents per pound, an increase of 2 per cent over 1967; during the first nine months of 1969 these prices averaged 45.3 cents per pound. 12. The high prices prevailing in 1968 did not affect the world grindings of cocoa which were 2 per cent higher than in 1967 and world stocks are calculated to have been reduced for the third successive year. A small decline in grindings in developed market economy countries was more than counterbalanced by an increase in developing countries and in the centrally-planned countries. The world market remained firm in the first half of 1969 reflecting the reduced production in Africa. Grindings in several important consuming countries were reduced as a result of increased prices. Total grindings in 1969 are however expected to exceed current production and a reduction in the level of world stocks for the fourth consecutive year is forecast. Tea 13. The expansion of world production of tea which had been checked in was resumed strongly in 1968 with record crops in ndia and a number of African countries. ndian output reached n new record level of 397, tons while the Ceylon harvest of 228, tons was slightly below the peak figure of There was aan even greater increase in Africa., mainly as a result of large crops in Total world production for 1968 has been put at 1,23, tons Kenya and Uganda. and production in 1969 is estimated to be even higher than in the preceding year with large crops indicated in all the main producing countries, except ndia where production was affected by adverse climatic conditions and strikes. 14. While tea production has risen over the last decade by nearly one third, trade has grown by less than one sixth. Total exports in 1968 were a little above the level of the previous year but shipments from Ceylon and ndia were below the peak figures of that year. t was unlikely that the 1968 volume of trade would be exceeded in 1969 in spite of increased exports from countries in Africa and other new producing regions. n the first half of 1969 ndian exports remained below the level of theprceding year. 15. On the import side shipments into the United Kingdor, reached a record volume in A new high level was also recorded in the United States while imports into Australia and reland recovered. mport demand in 1969 was reduced by the running down of stocks in the United Kingdom. Recent figures show that the consumption of tea per head is falling off in an increasing number of importing countries with the notable exception of the United States. Per caput consumption was however rising, in some exporting countries, notably in ndia.

4 Page The growing imbalance between supply and demand led to a further decline in prices in At the London auctions, the average for all teas declined in 1968 from 49.8 to 47.6 pence pe- pound, the lowest since The decline continued in 1969 with prices up to November at the London auction averaging 32d per pound below the figure for the corresponding period in The value of world exports of tea fell in 1968 to less than US$53 million, the lowest figure since Vegetable oilseeds and oils 17. During 1968 world production of all fats and oils rose by about 3 per cent over A large part of the increase was due to larger output in the Far East, in centrally-planncd countries and in Western Europe, the main part of the increase being accounted for by soft oils. Most of the increase of about 2, tons in developed countriest production was contributed in Western Europe by rapeseed oils and animal fats and to some extent by olive oil. The United States output rese by about 16, tons mainly on account of an increase in liquid edible oils. An important devalopment in 1968 was the increase in production in the developing countries after the fall in output in 1966 and There was then an increase in ndian groundnut production together with an increase in palm-oil in Malaysia which raised regional production by 48, tons in spite of reduced coconut supplies in the Philippines and Ceylon. Production of groundnuts fell in a number of exporting countries but together with the large stocks held in Nigeria the recovery in ndia raised the total supplies available. The copra and coconut oils shortage of 1967 continued in 1968 on account of a decline in the Philippines. Nigerian pa.lm-oil supplies were again lower but were made up for by increases in Malaysia and Congo. 18. The volume of exports of vegetable oilseeds and oils by developing countries expanded by 5 per cent in 1968 after having been approximately unchanged in the year before mports of groundnuts and oils rose by 8 per cent to a level of 1.1 million tons, mainly due to a recovery in Nigerian shipments. n 1968 the volume of copra, palm. kernels and their oils increased to 1.5 million tons, a minor recovery from the low 1967 levels. By contrast, palm-oil shipments expanded considerably and reached a peak of 65, tons despite the virtual disappearance -of Nigeria as an exporter. Exports of soybeans and their oil increased to 1.9 million tons. The United States exports, which account for 85 per cent of total soybean and oil trade, increased by 3 per cent. However, exports of soybeans rose by 12 per cent wheres oil reports declined. Most of the soybean shipments were directed to Western Europe and Japan. 19. The growth in trade in vegetable oilseeds and oils in 1968 mainly reflected an increase in import demand in Westsrn Lurope and Japan. The EEC imports rose by 6 per cent in 1968 over 1967 and those of this United Kingdom by 9 per cent, thereby approximating the lvsl reached in The increases, were concentrated on edible oilseeds and oils and. among them, imports mainly of groundnuts, rapeseed and sunflowerseed and their oils wore well above 1967 level. A small increasg occurred in imports of Switzerland but Scandinavian imports declined slightly.

5 Page 5 mports into Japan rose more than in 1967 i.e. by 6 per cent. n the United States, which mainly imports palu products and industrial oils, imports did not change significantly in The level of prices of fats and Dils, as measured by the FAQ Price ndex, declined in 1968 for the third successive year averaging 89 points ( =1), or one point less than in 1967, and thus fell to its lowest point since The decline largely reflected ample supplies of animal fats, in particular butter, in a number of European countries and of temperate-zone oilseeds, such as soybeans, rapeseed and sunflowersead, in several major exporting countries. Groundnut oil prices remained relatively firm on account of smaller harvests in exporting countries. Lauric oil prices moved upwards in the first half of 1968 but have weakened sincc. By contrast, prices of oilseeds, as measured by the FAO Special ndex, rose from 94 points in 1967 to 1 points in 1968 ( =1). This opposite development, of prices of oilseeds as Compared with certain oils reflected, inter alia, the continued strong iqport demand for thle oilcake component of oilseeds. Total earnings of developing countries from oils and oilsed exports rose by 11 per cent in 1968, contrasting with a 16 per cent decline in While in 1969 palm-oil and palm kernel production is likely to have risen substantially, the sharp upward trend in the production of soybeans in the United States was not maintained, the 1969 crop being about 2 per cent smaller than in With the exception of groundnut Al and sunflowarseed oil, supplies of most vegetable oils continue to be aaple relative to foreseeable demand as reflected in general weakening of prices in January-July 1969 compared to the same period in Some recovery took place, however, in the second half of last year. Bananas 22. World exports of bananas are estimated to have increased from an average of 4.62 million metric tons in the period to 5.54 million tons in 1967 and to 5.71 million in Ecuador, the main exporter, supplied 1 per cent less and Colombia about 1 per cent less in 1968 than in 196,7. The rccent growth in import demand has mainly been centred in Japan andnorrth America. n 1968 Japan became the largest import market after the United States, her imports advancing. by about 33 per cont over mports of the United States increased by 3 per cent and those of Canada by 7 per cent.. n 1968 japan. for the firsttime imported a significant volume frorn Central america and increased imports from. Ecuador. The United States imqports from cuador fell in 1968 but increased from Central American countries. Western European imports, which had failed to increase in 1967, fell by 2 per cent in 1968, mainly because of reduced purchases by the EEC and the United Kingdom. Among the individual member countriesof the EEC, the largest fall in 1968 occurred in Belgium, where importsfell by 14 per cent allowed by the Federal Republic of Germany by 6 per cent, France by 3 per cent and the Netherlands by 2 per cent. talian imports increased by 1 per cent whereas the United Kingdom imported 2 per cent less.

6 Page The volume of trade in bananas is expected to increase by about 4 per cent in 1969, with c! further strong increase in imports by Japan and a slight rise in the United States. Central American countries and the Republic of China made further gains in exports during the first half of the year, largely at the expense of Ecuador and Colombia. 24. According to FAO, export prices declined in 1968 and pressure on prices continued in Total export earnings are however estimate' to have been about 3 per cent higher in 196 than in thie preceding year. Most Central American countries were able to offset the fall in prices by larger export volumes. This was, however, not the case in the Caribbean region and in South America, where in particula- earnings of Ecuador and Colombia declined. Spices 25. mports of all spices into the OECD countries combined increased by 1 per cent in 1967 and by about 8 per cent in 1968 in terms of quantity, while in value terns they were lower in both years than in 1966, the year in which export earnings from pepper had preached an all-time record level. Almost all OECD countries increased their imports of spices, but at generally lower prices. Developing countries increased their shipments to the OECD area,. in 1967 by almost 15 per cent, primarily on account of larger supplies froma ndonesia, Malaysia and Brazil, while the increase of about 4 per cent in 1968 in terms of quantity was mainly the result of bigger supplies from Malaysia, Madagascar and Morocco, in spite of a considerable reduction in shipments from ndonesia, ndia and Mexico. 26. Among the spices traded internationally pepper occupies a most important position as it accounts for roughly 33 per cent of the value of world trade in spices, the bulk being supplied by ndia, ndonesia and Malaysia. World pepper production in 1968 increased to 139, metric tons, about 9 per cent more than in 1967,. Export trade in pepper increased in 1966 and 1967 but seems to have declined by about 3 per cent in 1968, primarily due to the fall in imports by the United States by 22 per cent, mainly front ndonesia. Western European imports were also running at a lower level than those in 1967, except in France. There are indications that the value 'of trade in pepper in 1968 fell below the level of the two preceding years. 27. Prices of pepper in 1969 moved markedly above the level of probably reflecting a shortage of supplies which may however turn out to be only temporary. TRADE POLCY DEVELOPMENTS AND NTERNATONAL CONSULTATONS RELATNG TO TROPCAL PRODUCTS Trade Policy developments 28. The first association agreement between the Associated African. States and Malagasy Republic and LEC expired on 31 May 1969 and a second Yaoundé Convention which contains most of the provisions of the first agreement, was signed on

7 SGTP/l5 Page Advance implementation of tariff concessions negotiated in the Kennedy Round has been made on a number of tropical products by several developed countries, as summarized below: (for further details see document L/2862/Rev.1 and addenda). Concession providing Concession providing for elimination for a duty reduction of duty Coffee (green) Canada, Japan, Norway Austria, EEC, Finland, Sweden, Switzerland, United Kingdom Cocoa beans Canada, Finland, Japan, Austria, EEC Swsden, Switzerland, UnitedKingdom Certain cocoa products Denmxrk, Norway, United Austria, Canada, Finland, Kingdom Sweden, Switzerland Tea Austria, Finland, Japan, EEC Norway, Sweden, Switzerland Certain vegetable oils Canada, Denmark Sweden, Switzerland Groundnuts Japan Czechoslovakia Bananas Denmark, Norway, Austria, Czechoslovakia, Sweden Switzerlend, Pepper Finland, Japan, Norway, Austria, Czechoslovakia, Sweden, United Kingdom Denmark, EEC, Switzerland 37. A report ias recently been made to the UNCTAD by the Secretary General of the OECD in connexion with -,he current discussions on a generalized preferential scheme in favour of developing countries. This report contains information on provisional proposals for -.' rerential tariff treatment submitted by a number of OECD countri countrintation The discussed in the Special indicates that Group certain items which on mpricalproducts and which fall under Chapters 1-24 of the BTN are covered by the proposals. The number of items falling in this category and. the tariff treatrment which is proposed varies con-. sidorably between individual donors. The EEC envisages tariff reductions varying according to products; Austria and Switzerland variable certain cases; rates most-favoured-nation rates and Japan varying from around 2-5 per cent of post- up to exemption in Canada reductions varying from 25-3 per cent of post-kennedy Round Kennedy Round most-favoured-nation rates. The Nordic countries, the United Kingdom and the United States will also grant duty-free entry, except for a few products where lesser reductions will apply.

8 SGTPA5 Page 7 29 July and entered into force on 1 September. Under thg second Convention, valid until 31 January 1975, duty-free entry will generally continue to be maintained into the EEC for tropical products. 29. n connexion. with the conclusion of the new Convention the Community has undertaken to lower its co.-mion external tariff on a number of tropical products, i.g. on coffee from 9.6 to 7 per cent, cocoa from 5.4 to 4 per cent and palm-oil from 9 to 6 per cent. 3. Under the Arusha Agreement which was signed in July 1968, expired in May 1969 and was renewed in September of that year, exports of tropical products from the East African Comunity are generally granted duty-free entry into the EEC. Exceptions are, intet alia, coffee and cloves for which duty-free quotas are specified. The quantities to be allowed into the. Community duty free in any given year are 56, tons of coffee and 12 tons of cloves. 31. The association agreements between the EEC and Morocco and Tunisi. became effective on 1 September 1969 for a period of five years. Pepper and several other spices will under the agreements be admitted into the EEC without restriction and free of duty. 32. The EEC decided in June 1969 to extend the earlier tariff suspension for tea until 3 June The rates are as follows: tea, in consumer packs not exceeding 3 kgs., 5 per cent; other tea, fully suspended. n conjunction with the suspension for tea, the agreement between the EEC and the United Kingdom of September 1963 on the simultaneous tariff suspension for tea was rebewerdfor the same two-year period..33. t might be noted that the arrangements by which the Government of taly has granted special preferential treatment to bananas imported. from Somalia since 196 will come to an end on 31 December 197, the date on which the validity of the waiver gr-anted by the CONTRACTNG PARTES to authorize this special treatment will expire. 34. n connexion with the work of the GATT Group on residual Restrictions Japan has notified her intention to remove the global quota restriction on imports of black tea by the end of The import turnover tax on coffee in ths Federal Republic of Germany was reduced in November 1968 to 3.5 per cent within the framework of the Government's general monetary policy measures. From 1 January 1969 the internal consumption tax on roasted coffee was.-reduced from DM 4.8 to DM 4.5 per kg. and that on soluble coffee from DM to DM 13; the tax on raw coffee remained unchanged at DM 3.6 per kg. n taly modifications were introduced for the year 1968 to the rates of the General Turnover Tax. The new rates for coffee and coffe, products were as follows: coffee; coffee extracts (9.1, 21.2) per cent; coffee substitutes (21.1) 6.4 per cent.

9 Page t may be noted that the scheme is governed by a number of gsn ral considerations: the preferences are temporary in nature, their grant does not constitute a binding commitment and is conditional upon a waiver from existing international obligations, in particular in the GATT. n addition prospective donors mention certain conditions, reservations,r hypotheses which should in their view be fulfilled before their offers could ba finalized. The informaztion contained in annex Table V illustrating the offers on certain tropical products by some of the prospective donor countries should -therefore be regarded as provisional in nature. nternational consultations 39. The nternational Coffee Agreement was renewed for another five years from September Following : year of generally weakening, coffee prices, the nternational Coffee Council in August 1969 set the initial 1969/7 export quotas under, the Agreement at 46 million bags (2.76 million tons) 1.5 million bags less than the initial quotas for 1968/69. n addition, provision was made for a reserve quota of 2 million bags to be released in three-quarterly tranches if the composite daily price exceeded specified levels for the prescribed fifteen-day period. 4. Discussions and the search for agreement on the essential elements of an international agreement on cocoa were continued in The Cocoa Producers Alliance, grouping Brazil, Cameroon, Ghana, vory Coast, Nigeria and Togo met in Accra in April 1969 to examine certain practical issues in the elaboration of an international agreement. n june a Technical Preparatory Meeting was convened under UNCTAD auspices to review the status of negotiations. A proposal was submitted by a major producing country for the reconsideration of some of the basic aspects of the scheme (price range and quote system. t was decided to continue consultations with a view to facilitating resumption of negotiations. 41. n order to sten the downward trend in tea prices producer countries at a meeting in Mauritius in July -August 1969 agreed to submit to their governments an informal scheme by which export quotas would be apportioned among them so as to remove from the export market in 197 some 9 Million pounds of black tea. The immecdiate aim was to maintain market prices as near as possible to the level of This arrangement was generally welcomed at the first session of the FAO Consultative Commttee on Toa in December 1969, at which a Working Group was formed to continue studies and discussions onlonger-tem measures for stabilizing the tea economy. There will be a further meeting of the Committee in mid -197 to review the working of the infornal arrangement. 42. A special session of the Study Group on Oilseeds, Oils and Fats is to be held in London in January-February 197, under the joint auspices of FAO and, UNCTAD. The purpose of the session is to undertake further consultations in

10 Page 1 accordance with UNCTAD Resolution 16()C adopted at New Delhi and to the extent possible make Practical proposals for short-term action and long-term measures for intergovernmental arrangements in respect of vegetable oils. The Group is also to consider whether any additional continuing machinery is required to deal with the problems of vegetable oils and oilseeds. 43. The Asian Coconut Community was formally inagugurated on 2 September 1969 with ndia, Ceylon, ndonesia, Malaysia, Thailand and the Philippines as members. 44. At its meeting in November 1969 the Agriculture Committee of GATT discussed problems relating to trade in. certain vegetable Jilseeds and oils on the basis of specific proposals made by Ceylon and Nigeria. The proposals urged the rer.oval of tariff and non-tariff barriers on groundnuts, palm-kernel oil, groundnut cake and meal, and copra and cocount oil. Machinery for tackling the problems was also suggested (see COM.AG/18 and Corr.l and COM.AG/19). 45. The Stuay Group on Bananas met in Panama in April t concluded that the best available evidence indicated' that export supplies seemed likely to increase at a faster rate than demand in importing countries, and that the gap could become considerable. t was agreed to continue regular consultations between producing and consuming countries.

11 Page11 Table CHANGES N VALUE OF EXPORTS FROM MAN DEVELOPNG EXPORTNG COUNTRES (US$ million) (provisional) Percentage change 1966/ /68 Coffee, Total developing countries 2,292 2,153 2, Brazil Colombia Other Latin karerica African countries Cocoa2 Total developi'i countries Tea Brazil Ghana Nigeria vory Coast Cameroon Total developing countries Ceylon ndia African countries _ + 9.Beans only. 2ncluding cocoa products.

12 Page 12 Table 1 (cont'd) (provisional) Percentage change ( 1966/ /68 Fats and oils Developed countries 1,638 1,639 1, Developing countries 1, ,45 J Bytypeof oilor fat Soft oils1 2 1,414 1,44 1, Lauric aci& oi:ls Hard oils Technical oils Butter Pepper Total devloping countries ndia ndonesia Malaysia (Sarawak) Brazil Malagasy Republic Bananas World total Latin America Central America South America Caribbeanregion Africa Groundnut, soybean, cottonseed, seswaie seed, rapeseed, sunflowerseed, olive and corn oils. 2 Copra, palm kernels end babassu, oils. 3Tallow, palm-oil, -whale oil, fish oil and seal oil. 4Linseed, castorbean, tung and oiticica oils. 5Fat content. 6ndex number of the value of exports, average = 1. Source: FAO Commodity Raview and Outlook

13 mports from: Table MPORTS OF COFFEE BEANS AND COFFEE PRODUCTS, STC 71 - Coffee Coffee, green or roasted Coffee, extracts, essences, concentrates (in ' metric EEC Scandinavian countries1 United States Japan United Kingdom OtherTotalEC OECD l Totaldeveloping countries ,327 1,287 1, ,926 2,572 2,273 Brazil Costa Rica Colombia El Salvador Guatemala 8 i l!o.6j 2!.1;.1 7j < Mexico 12o4.61 '.'6 63~ Africa 122 vorycoast Coast vory Uganda Ethiopia Angola Kenya l Congo (D.R.) Asia and Par East ndonesia ndia Denmark, Norway, Sweden. Sources: PAO Commodity Review and Outlook. OECD Statistics of Foreign Trade, C Series (Trade by Commodities).- CO Document KB-86/69 (E). Page 33 tons) ,

14 Page 14 Table (cont MPORTS OF COCOA AND COCOA PRODUCT STC 72 - Cocoa Cocoa beans Cocoa powder unsweetened Cocoa butter and cocoa paste (in metric tons ) Sources: OECD Statistics of Foreign Trade Series C. FAO Commodity Review and Outlook. Cocoa Statistics.

15 Page '.5 (cont'd) MPORTS OPTEA, 1966,1968 Table STC Tea (in ' metric tons) United Kingdom EEC J Other Western Europe United States Canada Japan Total Total imports of which from: Ceylon ndia ndonesia China (Taiwan) i Africa o Uganda Tanzania Mozambique Malawi : 12.7 Congo (Dem. Rep. of) Latin America Argentina Turkey Sources: OECD Statistics or Foreign Trade (Series C). Figures for calendar Years. PAO Commodity Review and Outlook.

16 SGTP/1 5 Page 16 Table ( cont'd) MPORTS OF MAJR- OLSEEDSAND VEGETABLE OLS, (in ' metric tons) Total oilseeds. oil nuts and oilkernls (STC 221) of which: Total groundnuts, total of which from: Copra, total of which from: fixed vegetable of which: Groundnut oil, total of which from: Nigeria Senegal Niger The Philippines ndonesia 1 oils, soft (STC 421) Nigeria Senegal Argentina Gambia Total other fixedvegetable oils2 (STC 422) : of which: Palm oil, total of which from: Coconut-copra-oil, of which from: Congo, Dem. Rep. of Malaysia ndonesia Nigeria total Palm-kernal oil, total The Philippines Ceylon of which from: Congo, Dem. Rep. of Total , , , OECD 1, , , , , , , l EEC includes also soyabean oil, olive oil, sunflowerseed oil, cottonseed oil, rape, colza and mustard oils. 2ncludes also linseed oil, castor oil, tung oll, safflower oil, babassu oil, etc United Kingdom i i i i 72 68, 296 3, United States Japan Sweden Sources: OECD, Trade by Commodities, mports ; NMEXE, Tableaux Analytiques, ; National trade returns.

17 SGTP/l5 Page 217 Table (contd) MPORTS OF BANANAS, (in metric tons) Total OECD EEC United Kingdom United States Japan Switzerland Total quantity of mports of 4,546 4,632 4,789 1,586 1,582 1, ,711 1,725 1, bananas (STC 51.3) of which from: Ecuador 1,167 1,194 1, * lforw'4raz * Panama Colombia Costa Rica China,Republic of Pr. Antilles Z Jamaica vory. Coast Somalia , Guatemala Cameroon ' (in US') Total value of imports bananas (STC 51.3) of 647, ,1 666,35 258, , ,55 61,862 58,591 51,77 181,444 i68' 185,3 64,489 _74, ,689 7z66 Ecuador 147, ,86 149,92 67,858 69,571 47, ,1L2 43,562 34,723 1,697 11,6o 37,936 3,31 4,43 * Honduras 96,485 17,67 116,743 17,36 4,877 43, ,96. 44,961 44, ,936 5,923 5,971 Panama. 51,146 53,68 59,927 1,194 1,331 6, ,593 44,716 45, Colombia 41,94 43,893 33,375 31,272 28,532 18, Costa Rica 35,586 37,58 53,783 1,63 1 1, ,996 3,89 44, China,Republic of 53,4 62,542 55, ,4 62,542 56,966 - Fr. Antilles 62,275 56,639 53,195 61,87 56,273 52, Jamaica.33,326 32,983 24, ,815 31,859 24, vory Coast 21,455 26,594 24,631 21,455 26,575 24, Somalia 17,5 13,558 12,943 17,57 13,558 12, Guatemala 12,18 12,956 18,575 6,723 5,455 8, ,535 5,21 7, ,955 1,684 Cameroon 12,377 9,886 8,576 9,816 9,886 8, ,664 3,74 6, Source: OECD), Trade by Commodities, mports

18 Page 18 Table (cont'd.) MPORTS OF SPCES (inmetric tons) Total OECD EEC Uni~ted. States United Kingdom apan."swede,- in metrictons X968 i966 j 967 imports Total of spices (STC 75) 118,626 13,698 14,725 35,23 37,724 42,482 51, , 57, ,9 ~ Q ~. ~ 8~6 ntra-oecd trade 2,. 19, ;1 588 *%92 6,57 8,564 lo.,i199 1,2'., mports from Eastern Trading Area 14,881 15,522 19,7 6,735 6,917 8,917 2,486 2,521 2,94 1,115.1,1 1,118 1,698 1,566 2, mports --from developing countries ,292 99,172 ;22,392 24,885 27,4 39,88 46,85 46,88 7,471 8,66 8,727 4,646 4,848 5,698 1,256 ofwhich from: ndonesia 23,242 35,468 31,467 6,342 7,26 5,944 15,16 25,71 22, : Madagascar 4,85 4,47 5,565 1,95 1,9 2,695 1,814 1,724 2, *Malaysia 7,731 8,71 1,149 2,564 3,54 4, ,385 1, ,269 1,257 1, ndia 12,361 7,971 7,567 2,244 2,26 2,16 6,684 2,288 2, Mexico 5,117 5,99 4, ,23 5,5 4, Brazil 4,2 6,938 6,533 1,293 2,761 2,21 2,158 3,426 3, (in Us$, Total imports ofspices (STC ,3 11,976 34,762 33,7 33,683 49, ,746 6,844 4,479 4,263 5,15 4,271 3,774 ntra-oecd trade 19,334 19,248 19,591 6,43 6,498 6,589 5,738 5,412 6,131 1,738 1,484.1, , ,363 mports from Eastern Trading Area 8,41 9,752 3,344 3,493 4,427 1,321 1,332 1, , mports from developing countries 88,262 82,54 81,57 25,354 23,669 22,613 42,515 59,15 4,62 6,162 5,911 5,151 3,371 3,32 3,216 2,8 2,28 of which from: ndonesia 3,44 24,527 8,382 7,84 4,794 16,67 2,693 17, Madagascar 11,77 9,178 15,351 3,65 3,13.9 4,214 8,141 5,376 1, Malaysia.8,47 7,426 7,137 2,919 2,793 2, ,586 1, ' 1, , ndia 11,392 6,947 5,753 2,498 2,114. 1,852 5,424 1,67 1, * Mexico 2,74. 2,883 2, ,58 2,719 2, Brazi 3,537 4,768 3,917 1,322 2,219 1,564 1,673 1,989 1, Source:OECd, Trade by Commodities mports ) ,

19 Dec (255) a F-3 J 'J- t' n- ~J Coffee - Ex-.-..oclz, New York Coffee- Ex-dock indicator prices as defined in the nternational Coffee Agreement) Colombia mild arabicas Other mild arabicas Unworked:. arabicas Robustas All coffee Cocoa - Ghana, Spot New York Tea - London auction prices. all tea Bananas - Ecuador, c.i.f. Hamburg Pepper United States, black Malabar, spot New York Groundnuts - Nigerian,Shelled, c.i.f European ports Groundnut oil Nigerian/Gambian, 3-5% bulk, c.i.f. European ports Copra - Philippines, bulk, f.i.f. European ports Coconut oil - Ceylon 1%, bulk, c.i.f European parts Palun kernels - West Atrica, c.i.f. European ports Palm oil - Mlalayan, 5%, c.i.f. European ports Table PRCES OFSELECTED TROPCAL PRODUCTS., Currency New cents/lb. cents/lb. cents/lb. cents/lb. cents/lb. cents/lb. pence/lb /ton cents/lb. $/ton $/ton $/ton $/ton $/ton $/ton York 48.6 (136) (l38) : /As from 18 November 1967, pence/lb. is equivalent to cents/lb. 2/Estimated. Source: UNCTAD. Monthly Commodity Price Bulletin june 'Tul '. -,Ug i -! 62 Sep Oct Nov L ? 146 1fl. l o

20 Page 2 Table LLUSTRATVE OFFERS OF TROPCAL PRODUCTS MADE BY DEVELOPNG COUNTRES N THE CONTEXT OF THE GENERAL PREFERENTAL SCHEME The illustrative offers listed below relate to the six product groups selected by the Special Group for priority study. Offers made on these -products in their more advanced stages of processing are not included in the lists. AUSTRA V Austrian' Auctriaw tariff rate: Proposed tariff STC Description of products (post Kennedy-Ro-md preferen-- items level, autonomous rate respectively) tial rate of duty 513, Bananas: - Fresh Coffee, whether or not roasted or freed of caffeine; coffee husks and skins; coffee substitutes containing coffee in any proportion: A - Not roasted -B Roasted 2% 3% Free.2% 9.2 ex 7411 Tea: A - n separate packings not containing more than 3 kgs. 1% 8% 9.4 ex 751 Pepper of the genus "Piper"; pimento of the genus "Capsicum" or the genus "Pimenta": A - Pepper of the genus "Piper"; 1 - Unground 2% 15% 2 - Ground or other - wise crushed 35% 26%

21 Page 21 Tabe (cont'd) Austrian Austrian tariff rate:! Proposed , N (9.4) (9.8) STC Description of products (post Kennedy.-Round preferenlevel, autoncmous tial rate item, rate respectively) of duty B Pimentof thegenus of "Capsicum": A Unground B Ground or crushed Nutmeg, race cardamoms: A B otherwise and Urground: 1 * Cardamons 2 - Nutmeg and mace B - (Ground or otherwise crushed 1 - Cardamoms 2 - Nutmeg and mace i.i i 15% 2% C 2 Ground or other ad or othercrushed - -- Jamaica andpimento and other pimentothe pimnto of the genus "Pimenta": "Pimenta": 1 Unground1- Unground 2-Groundor other-wise crushed - Ground orother Vanilla: A- Unground B Ground orotherwise otherwise crushed Cinnamon and cinnaon - tree flowers: A Unground B - - Ground or crushed otherwise 7523 Cloves (whole cloves and stems fruit, 2,8.- 2,8. 2% 15% 3% 1% 15% 13% 25% 12% 15% 2% 2,1. 2, % 23% 12% 23% 7% 11%

22 Page 22 Table V (cont'd) Austrian Austrian tariff rate: Proposed Austrian STC Descripticn of products (post Kennedy-Round preferen-- tariff level, autonomous tial rate items rate respectively) of duty (9.1) C- Ginger: 1 - Unground 2% 15% 1 2- Ground or other. wise crushed 35% Cocoa beans, whole or broken, raw or rnasted: A -Raw, in the bean 7% Freg B. Other 1% 5% 18.2 O8192 Cocoa shells, husks, skins and waste Cocoa paste (in bulk or in block), whether or not defatted 25% 15% Cocoa butter (fat or oil) 16% 8% Cocoa powder, unsweetened 27% 14%

23 Page 23 Table V (contd) CANADA Canadian Proposed 197 and Post-. tariff Product description preferential Kennedy item rate rate (a) 2-1 Cocoa paste or "liquor" and chocolate paste or "liquor", not ; sweetened, i:; blocks r r cakes Free l /lb. British Preferential /b Cocoa paste or "liquor" and chocolate paste or "liquor" sweetened, in blocks or cakes, not less then two, counds in weight //lb. 2 /lb. British Preferential 2 /lb, 3-1 Papper, unground Free 5 p.c British Preferential Cloves, unground British Preferential Cinnamon, ungrourd British.Preferential Ginger, unground British Preferential Spices, unground, n.o. p. British Preferential Ginger and spices, British Preferential Nutmegs and mace, whole or unground British Preferential Nutmegs and mace, ground British Preferential Coconut British Preferential ground n.o.n. Free Free Free: 5 p.c. p.c. 5 p.c. Free 5 p.c. Free 5 p.c. Free 5 p.c. Free 5 p.c. Free 71/2 p.c. 5 p.c. 12 p.c. Free, 5 p.c. 1 p.c. Free

24 Page 24 Table V (cont'd) Canadian Proposed 197 and Posttariff Product description Preferential Kennedy item rate rate (a) Palm British Preferential Free 1 p.c. Free Palm kernel British Preferential Free 1 p.c. Free Peanut British Preferential Free 1 p.c. Free Vegetable--oils, other than 2 crude or crude degummed: Coconut 12-½ p.c. 17 ½ p.c. British Preferential 12½ p.c Palm ½ 12 p.c. 17½ p.c. British Preferential 12½ p.c Palm kernel 12½ p.c. 17½2- p.c. British Preferential 122 p.c Peanut 1½2 p.c. 1½7 p.c. British Preefecntial 12. p.c.

25 Tariff Description of goods.a.c.c Proposed Table V (cont' d) EUROPEAN ECONOMC COMUNTY Page 25 mport charges (m.f.n.) Proposed Description of good Variable FixedCustoms treatment tial rate heading element element duty cr f.e Chocolate and other food preparations containing a. Cocoa powder, not otherwise sweetened than by the simple ; addition of saccharose, containing by weight of saccharcse:. Loss than 65% Yes 1% exemption: 1f.e % cror moreut less than. 8% Yes 1< % -.! " 75 %. 8% or more iys 1% 7% A.O.C. (Associated Ovcrsaes Ccounries) cover Associated African and Malagasy States, Overseas Departments and Overseas Territories.

26 Page 26 Table V (cont'd) JAPAN Rate of duty BTN BTN (1967) Description' of goods Proposed preferential of duty STC Pepper seeds (seeds of "Piper Nigrum") put up for sale by retail Pepper ("Piper Nigrum", except seeds,, put up fc for sale by retail Other pepper of the ger "Piper". pimento of the genus "Capsicum" or the genus "Pimenta ", put up. for sale by retail genus (1) (1) ; Cloves (whole fruit, cloves and stems), put up for sale by retail Nutmeg, put up for sale by retail Mice and cardamoms, out up for sale by retail Seeds of anise, badian., fennel, coriander, cumin, caraway and juniper, put up for sale by retail Thyme, saffron, bay leaves, and other spices, put up for sale by retail

27 SKY "a...- Table V (cont'd) Cocoa paste, not defatted 14 Cocoa paste, defatted 2 Rate of duty 197Post Cocoa butter 6.6 Cocoa powder unsweetened 3 Kennedy Round.' A_ i i Page 27 Proposed preferential rate of duty

28 Page 28 NORDC Table V COUNTRES (conttd) The Nordic countries are prepared to grant duty-free entry to the following products. US$' Brussels 1 Ad valorem tariff level or } (or ad valorem equivalent) National STC Product description Customs Nomencl. 197 Post-Kennedy Remarks. Nomenci. 19 Round level Remarks Tea Pepper of the genus Piper, pimento of the genus Capsicum or the genus Pimenta Vanila Cinnamon and tree flowers Cloves (whole fruit, cloves and stems) Nutmeg, moms Spices mace and Cinnamon and cinnamon- cardo- D FN S D F N S D F N S D F N S D S N S D F N S O-5% -1 2 (4.1)

29 SGTP/45 Page 29 Table V (cont d) Brussels Act valoren. tariff level or STC (or ad valorem equivalent) National.Normoncl. Product description customs 197 Post-KennedyRemarks Nomencl.. Round level Cocoa beans, etc. -5% -5% S O Cocoa shells, husks, etc. D F N S Cocoa paste, etc. vd NO s 1L Cocoa buteor (fat or oil) D F % 2% S1 2 1 (2.) (1.6) 18.5 C72.2. Cocoa powder, unsweetened D ( F1% i1% N 56 1 (1.8) (14,1) L(51.1

30 Page 3 Table V 3-SWTZERLAND (cont'd) Switzerland is prepared to grant variable rates up to exemption in certain cases on the following products. No. of Nomencla- Swiss ture Description of the product Tariff STC 94. Pepper of the genus "Piper"; pimento of the genus "Capsium." or the genus "Pimenta": Not processed - Processed (i) Vanilla Cinnamon and cinamon-tree flowers: (2) 75.2(2) - Not processed - Processed Cloves (whole fruit, cloves and stems (3) 75.2 (3) - Not processed - Processed 98. Nutmeg, mace and cardamoms: 1 - Not processed - Processed 99. Seeds of nis, badian, fennel, coriander, cumin, caraway and juniper: (5) - Seeds of cumin and (5) - Other caraway 91, Thyme, saffron and bay leaves; other spices: (9) - Thyme and bay, leaves (9) - Saffron - Other (9) - - Not processed (9) - - Processed 157. Fixed vegetable oils, or purified: fluid or solids crude, refined For industrial purposes

31 Page 31 Table V (cont'd) No. of Nomencla- Swiss ture Description of the product tariff STC 157. (cont 'd) 4 (421.2/ ( Linseed oil soyabear. oil /4 44 (421.3/7; (422.2, 5, ( Other (2) Cocoa shells, husks, skins and waste (1) Cocoa past (in bulk or i block) whether or not defatted (2) Cocoa fat (cocoa butter) and cocoa oil Cocoa powder, unsweetened

32 Page 32 Table V (cont'd) UNTED KNGDOM -The, United Kingdom is prepared to products. grant duty-free entry to the following UK tariff heading Ad valorem (first four numbers T rtariffduct description level correspond to Brussels STC Product description (or ad valorem Nomenclature equivalent) ex 9.1(C) ex 75.2(9) Spices: dried, ground, 1% manufactured or prepared C/W free 18.6(B) ex 73. Cocoa powder with added 5s. per cwt. sweetening matter (2%)./W free 2.6(D) ex 53.9 Ginger otherwise prepared 1% or preserved C/W free

33 Page 33 Table V (contd) M. STATES The United States is prepared to grant duty-free entry on the following products. Product description Post-Kennedy Round Duty Average ad valoren equivalent Cocoa, not sweetened, and cocoa.37 / lb 4% cake suitable for reduction to cocoa powder Cocoa sweetened 5% 5% Average ad valorem equivalents have been calculated trade data. on the basis of 1967