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Extra info for Tariff Preferences in Mediterranean Diplomacy
Example text
The two basic reasons for accepting customs unions initially 20 TARIFF PREFERENCES IN MEDITERRANEAN DIPLOMACY were historical tradition and as a solution of a technical problem between small countries. On the basis of the American proposals, a first plan9 for a charter, the London Draft, was discussed and presented in October and November I946. With regard to customs unions, the American proposals were accepted with one alteration. Based on a proposal by the developing countries, a paragraph was added to the proposed article which allowed the creation of new preferential agreements in exceptional circumstances, and on acceptance by a two-thirds majority of the members of the proposed International Trade Organisation.
The principles of the overall approach were defmed as: (a) harmonisation of the external policies of member states towards the Mediterranean countries; (b) reciprocal tariff and quota measures which would allow the progressive establishment of either a free trade area or a customs union; (c) the establishment of a common policy on relations with third countries which are oil producers, refiners or exporters; and (d) a periodic review of the reciprocal concessions granted in the agricultural sector.
In addition, there was mention for the first time of the consolidation of margins of preference, which was included in 18 TARIFF PREFERENCES IN MEDITERRANEAN DIPLOMACY the General Agreement, as well as the prohibition of new preferential agreements. This compromise, 7 at the time received very reticently by the British press, later came even closer to the British position. The reason for this was simple and related to the politico-strategic situation in 1946. The Congress of the United States began to realise that the void caused in certain areas by the possible further dismantling of the British Empire could draw the attention of the Soviet Union whose influence was already being felt in Greece and Turkey.