Present

Mr. N.A. Robertson, Secretary to the Cabinet (Chairman)
Dr. W.C. Clark, Deputy Minister of Finance,
Mr. J.G. Taggart, Deputy Minister of Agriculture,
Mr. M.W. Mackenzie, Deputy Minister of Trade and Commerce,
Mr. J.E. Coyne, Deputy Governor of the Bank of Canada,
Mr. David Sim, Deputy Minister of National Revenue,
Mr. H.B. McKinnon, Chairman of the Tariff Board.
Mr. R.G. Robertson, Privy Council Office (Secretary)

Also Present

Mr. J.V. Clyne, Chairman, Canadian Maritime Commission, Mr. Alex Skelton, Assistant Deputy Minister of Trade and Commerce, Mr. J.J. Deutsch, Department of Finance, Mr. T.N. Beaupré, Department of Trade and Commerce, Mr. C.M. Isbister, Department of Trade and Commerce, Mr. A.F.W. Plumptre, Department of External Affairs, Mr. W.J. Matthews, Department of Transport, Mr. W.J. Fisher, Canadian Maritime Commission.

III. U.K. CANADA CONTINUING COMMITTEE; MEETING OF JUNE 19

7.The Deputy Minister of Trade and Commerce said that during his recent visit to London it had appeared that the United Kingdom officials were anxious to have the meeting of the Continuing Committee that had been tentatively planned. The time seemed a suitable one at which to attempt to get some arrangement in relation to the British West Indies and for general reasons it seemed important to accept the invitation.

The principal items for the agenda would be the review of the balance of payments; a consideration of U.K. prospects for selling in Canada; the Canadian trading position in relation to the British West Indies; and the United Kingdom import programme for 1950 51.

In connection with the West Indies, an attempt was being made to prepare definite proposals to put before the United Kingdom. One possibility might be to have open general licenses provided for basic items, such as codfish, potatoes, flour and lumber. A different approach would be needed in relation to manufactured goods. Related to this discussion would be the question the United Kingdom had raised concerning liberalization of trade between O.E.E.C. countries and the colonies generally. It would be desirable if U.K. steps in relation to such liberalization could be held off until the Committee met.

As a part of the discussion of U.K. prospects for selling in Canada, there should be discussion of dumping duties. The Minister of Trade and Commerce had indicated while in London that it seemed probable that Canada would have to remove the present waiver. The United Kingdom would be expecting a definite statement on our policy. One possibility that might be considered, although there seemed to be legal difficulties, was that of a conditional waiver of dumping duty. There might be a provision to the effect that dump should not apply to products sold in Canada at a price below the domestic market price in the country of origin, if the export price to Canada was not less than the general export price. Another possibility might be to remove the waiver of dump on everything except automobiles. Perhaps it could be indicated that the waiver would be left in respect of cars until the exchange restrictions on automobile imports from the United States were removed.

8. The Deputy Minister of National Revenue thought that the suggested formula for a conditional waiver of dumping duty would not be practicable. It seemed clear that some action would have to be taken, and the best procedure might be to remove the waiver on everything except automobiles, as proposed.

9. The Chairman suggested that it might be desirable to explore the possibility of having the Dollar Sterling Trade Board follow up cases in which dumping duty would now be applicable, in order to remove the circumstances that required a waiver. It would be much easier to eliminate the present waiver if it were actually inoperative.

10. The Deputy Minister of Trade and Commerce mentioned that other matters for discussion at the Continuing Committee might be the question of sales of codfish to the Mediterranean area for sterling, and the probability of further relaxation of import controls in Canada. In connection with the latter, it seemed desirable to warn the United Kingdom that such relaxation was forthcoming.

11. The Committee, after considerable discussion,

(a) noted the report of the Deputy Minister of Trade and Commerce concerning the agenda for the meeting of the U.K. Canada Continuing Committee; and

(b) agreed that a memorandum on dumping duties be prepared by the Department of Trade and Commerce for circulation to the members of the Committee.