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DCER : Volume #18 - 949.DEA/6964-40 :

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Volume #18 - 949.

CHAPITRE IX

EUROPE DE L'OUEST ET MOYEN-ORIENT

3E PARTIE

MOYEN ORIENT

SECTION A

ÉGYPTE

SUBDIVISION II

COMMERCE

949.

DEA/6964-40

Le sous-ministre du Commerce
au sous-secrétaire d'État aux Affaires extérieures

Ottawa, le 28 mars 1952


Dear Mr. Heeney,

We are informed by cable of March 25 from the Acting Trade Commissioner at Cairo that the Government of Egypt had doubled all customs duties applicable to Canadian goods.

Egypt having a single-column tariff, Egyptian law has for some time contained a punitive provision by which customs duties may be increased in this fashion against any country with which Egypt has no trade agreement. This law has now been implemented for the first time in relation to Canada. Although we lack detailed information, we believe that similar action has also been taken in relation to, other countries in the same position.

While Canadian exports to Egypt are not large, amounting to $2.5 million last year, a number of our exporters will be affected immediately. If manufactured goods, such as Canadian automobiles, are eliminated from Egypt by reason of the tariff being doubled against us, it Will be more difficult to get back into the market later, in competition with other countries which are able to maintain their business. I am attaching a memorandum on this subject containing additional information.?

We have consulted informally with the Department of Finance on this question. On grounds of commercial relations and trade alone, we see no reason why we should not enter into a most favoured nation treaty with Egypt. From the point of view of your Department, we would give rise to any objection to proceeding in this way at the present time.

This matter is urgent because of the pending departure of the Acting Trade Commissioner from Cairo and we shall look forward to your early reply.

Yours sincerely,
WM. FREDERICK BULL



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