Winnipeg Free Press

Winnipeg Free Press (Newspaper) - July 19, 1968, Winnipeg, Manitoba Winnipeg free press Friday july ,19, 1968 Canada expected to reap Long term gains from eco development of the euro Pean common Market May Hurt Canadian Trade twill the six countries for a time but eventual lower tariffs May prove profitable for Canadian business tames Nelson of the Ottawa staff of the Canadian press re ports after a month s study of the eco countries. Nelson Brussels up Cana Dian foreign Trade x officials Are looking for new ways to devise profitable contacts " be tween Canadian and West european businessmen As the european common Market reaches its full flowering this summer. Development of the pact in v o 1 v i n g Belgium prance Germany Italy Luxembourg and the Netherlands has meant raising the tariffs against Canadian goods in some markets and lowering them in others. 1972 the Tariff Outing process resulting from the Kennedy round of negotiations under the Gen eral agreement on tariffs arid Trade will mean that the Standard import duty against Industrial products in the six countries will be lower than any of them were before the common Market began. So far has been the easy Access Canadian goods have had for a Long time in , Belgium Luxembourg and the nether lands. France drops rate before 1957, when the com Mon Market s treaty of Rome was the French Tariff was the highest in Europe averaging 16.8 per cent. It sub sequently was reduced to 14.4. The italian Tariff which was 15.3, was Cut to 13.8. The German Tariff How Ever went up to 11 per cent from 8.3, and the Tariff of the Benelux other three of the to 11.2 from 8.8. Under the common Market program All of these tariffs were brought to a common external Tariff of 12.8 per cent when All internal tariffs among the six were eliminated july i. But at the. Same time the Kennedy round began to be implemented by the com Mon Market. The six negotiated As a unit with the other world trading Powers at Geneva when the massive across the Board Tariff proposed by the late president John f. Kennedy were being bar gained. As a result the 12.8 per cent common will be reduced to 10.7 per cent in addition to this the six have proposed making a Sec Ond Cut at the end of this year to help the United states bal Ance of payment situations if the .. Will guarantee it will not erect some other Tariff hurdle. This bargain has not yet been sealed but if it is achieved the common Exter Nal Tariff will drop to 9.6 per cent next Jan. 1. Trudeau Turner disagree f _ o prime min ister Trudeau has indicated he does not care for Justice minis ter Turner s idea about permit Ting parliament to vote on the criminal code Bill by sections. The Liberal Leader told a re Porter wednesday he still re Gards the omnibus Bill As a sin Gle Bill. But he was not closing the door Ion the Turner Sugges Tion. V. I Haven t had a report from or. Turner on Tver. Trudeau said. If he has grave reasons for changing it i suppose we d consider or. Or. Trudeau s. Successor in Justice told a re Porter earlier the " Many sided Bill amending the code May be broken up. This would permit members of parliament to vote against one Section without opposing the whole Bill. I want to make sure that an my who is against abortion but for a tougher firearms Law does to lose his or. Turner said by Way of exam ple. But or. Trudeau who. Intro Duce d the Bill into the last parliament said maps will have All the Freedom they want to 7ex press their opinions on specific sections in parliament when the Bill is re introduced. It died when last parliament was dissolved for the june 25 elec Tion. _ j but that As a whole the idea of second Reading on principle is to show we re bring ing the criminal code up to or. Trudeau added. I think this will remain the the second Reading vote is the crucial one on legislation be cause it amounts to parliamentary approval or rejection of the principle the criminal is a massive i d u m e n t which amends the code variety of subjects some of which Are unrelated. According to present plans it would then continue to taper off to 8.6 per cent at the beginning of 1971, and to 7.5 cent in than any of the previous tariffs. Canadian exports to Ger Many Belgium and the Netherlands have suffered from the raising of the tariffs in re cent years the tariffs Are important because of the trans shipment of goods at the ports of Antwerp Rotterdam Ham Burg and the like for the rest of Europe. Asa consequence of the tar Iff shifting that has been going on and is still to be brought about the competitive forces Canadian business must Deal with in Europe have been changing. Italian goods now enter France and Germany easily and italian Home appliances have made big inroads. By the same Token French food stuffs Are being sold in Ger Many and Italy. Since july 1 there has been no Tariff on any goods moving among the six and the same tariffs apply in All these coun tries against goods coming in from outside this is the nub of the com Mon Market insofar As tariffs Are concerned. It will be Many years if riot generations however before there is anything like a common mar Ket in Europe in marketing methods tastes or National needs. The differences among ital Ian French and German National economies National idiosyncrasies and National Aspi rations will remain despite the h Ope of the common mar Ket countries to work towards political Union. To some extent this colors the Ideal Way to do business in each of the a in for instance Many Canadian business enterprises have found it Best to enter into joint ventures with German firms this is the Case with aluminium ltd., the International giant which owns aluminium co. Of can Ada and worldwide subsidiaries. It is about to open a hew rolling Mill near Dusseldorf As a 50-50 Deal a a state owned Enterprise. German firms also Are interested in going into joint Stock propositions with Cana Dian firms and there ing interest in individual Ger Man investment in Canadian land holdings or Oiher endear ors. It was explained that the germans Are becoming More conscious of the value of hav ing a foothold in another land if War should Ever come again to Germany in France Canadian Export ers Are being told to work through French agents in order to Market their products to the Best advantage. The marketing system in France with its larger diverse Many times More Complex than in Ger Many. And in Italy there appears to be. Growing acceptance of the idea of licensing deals be tween Canadian manufacturers and italian partners. Deal ing with italian officialdom in such matters As customs in posts and taxes is frustrating for such Indus trial giants As Fiat and Al segments of Industry Are based on the family firm employing 10 persons or less., a Canadian brassiere manufacturer for instance has had a Market in Italy for part of its line of goods. But a ital Ian to it recently and made a licensing Deal by which the italians would take Over production of the most popular lines and import those less popular. As a re sult the Canadian firm is doing More business with less Effort than before. While Canadian exports to Italy have More than doubled in the last four years and exports to the Netherlands have grown by 73 per Cana Dian exports to the rest of the common Market have faltered. In 1964, Hie six countries took 6.8 per cent of Canada s total exports. Last year this figure was Down to six per cent meanwhile Canada s dependence on the. Market for its sales has risen to 63 per cent of total exports from 52 four years ago. Canada s exports to the world have risen 37 per cent on average since 1964. But to the six they have risen Only 21 per cent. They Are up 65 per cent to the., and Down two per cent to the United kingdom. Enjoy the Richmond sensation Strickman filter world s first Strickman filter cigarette be kind to your taste. 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