TRADE WAR WILL TAKE ITS TOLL

Workers Press no. 1046, 12 April 1973 · scan page 5

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American big business is getting the jitters about the future effect of the Common Market on trade, according to an article in the latest CBI Griffin Burnett claims that the recent enlargement of the community is almost certain to affect US agriculture adversely.

US exports to the UK are expected to go down as British farmers step up production in response to the higher prices agreed under the Common Agricultural Policy.

Common Market farmers will also now have a preferred position in relation to the UK.

Burnett adds that US sales of tobacco, fruit and vegetables are likely to be threatened by these preferential arrangements.

Not only will American farmers be hit in these ways, but Commonwealth countries denied special access to UK markets will now step up competition in third markets. big business.

Preferences to Mediterranean countries have already put Florida citrus growers at a disadvantage.

And special arrangements for tropical producers in Africa and elsewhere in the British Commonwealth put south American firms at a disadvantage, thereby reducing their capacity to buy from the US.

Reverse preterences, whereby developing countries grant preferences to EEC manufactured goods, was a major element in the deterioration of the US trade deficit.