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Documents on Canadian External Relations
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Volume #23 - 436. | |
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CHAPTER II WESTERN EUROPE | |
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PART
5 BENELUX: IMPORT RESTRICTIONS | |
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436. |
DEA/12447-40 |
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Ambassador in United States to Secretary of State for External Affairs | |
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TELEGRAM 359 CONFIDENTIAL. IMPORTANT. |
Washington,
February 16th, 1957 |
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Repeat NATO Paris (Information). COMMON IMPORT QUOTAS IN BENELUX CUSTOMS UNION The Benelux countries have informed the USA of certain common quotas which they are introducing as of January this year. According to Weiss and Corse, the initial State Department reactions expressed to the representatives of Benelux were strongly adverse. The Benelux note stated that these new arrangements would in general give fuller access to the markets of the three countries. The recipient of the note in the State Department queried what was meant by the apparently limiting words in general. He also inquired how the Benelux authorities had arrived at the specific items included in the common quotas. He went on to ask the Belgian representative to what extent his country had in fact been observing such quotas before the introduction of this system. The State Department official pointed out that there appeared to be no balance of payments justification for such restrictions and most of them (for example, automobiles) were not covered by the hard-core waiver. Finally, he questioned whether the common quota system for the Benelux countries was consistent with Article XXIV of the GATT. 2. Weiss and Corse expect that the USA will be making more considered and vigorous representations in the three capitals, possibly next week. They may also raise the matter in the GATT consultations involving these countries. 3. The State Department concern over this development relates
not only to the obligations of these particular countries under
the GATT and to the effect which this action might have on USA
access to their markets, but also to the consequences which
acceptance of this device might have for the Messina Customs
Union which would undoubtedly profit from the experience of
Benelux.
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