Foreign Relations of the United States, 1961–1963, Volume IX, Foreign Economic Policy

292. Circular Telegram From the Department of State to Certain Diplomatic Missions⁰

Washington, December 3, 1963, 6:58 p.m.

1006. Pass USIA. Following will be released by Herter Office Noon E.S.T. December 4:

The United States notified the Executive Secretary of the General Agreement on Tariffs and Trade today that it will suspend tariff concessions on brandy, trucks, dextrine, and starches. Higher tariffs on these articles will go into effect on January 7, 1964. This action is being taken to restore the balance of tariff concessions upset by restrictions imposed on poultry imports by the European Economic Community.

The new rates will apply to imports of these articles from any source. The original tariff concessions on them, however, had been negotiated with member states of the European Economic Community. These nations account for 94 per cent of United States imports of the affected articles.

A GATT panel recently determined that the value of United States trade affected by the restrictions on poultry amounted to $26 million.¹ The value of imports from the European Economic Community that will be affected by the higher United States tariff corresponds to this figure.

Following the announcement of the suspensions, Christian A. Herter, Special Representative for Trade Negotiations, stressed that “The tariff concessions are suspended, not withdrawn, and they can be reinstated at any time that there is an agreement with the European Economic Community to restore reasonable access for United States poultry.”

Rusk

0. Source: Department of State, Central Files, INCO-POULTRY US. Limited Official Use; Immediate. Drafted by Michael W. Moynihan (STR) on December 2 and approved by William M. Roth (STR). Sent to Brussels for the Mission to the EC and the Embassy, Geneva for the delegation to GATT, Athens, Bern, Bonn, Buenos Aires, Canberra, Copenhagen, Dublin, The Hague, Lima, Lisbon, London, Luxembourg, Madrid, Ottawa, Paris for the Embassy and USRO, Rio de Janeiro, Rome, Stockholm, Tel Aviv, Tokyo, and Vienna.
1. On October 28, at the request of the United States and the EEC, the GATT Council of Representatives established an expert panel to determine the dollar value of the injury to the United States of the German tariff increase on poultry imports. The figure of $26 million, announced November 21, 1963, after both sides had presented both written and oral arguments, was well below the U.S. calculation of $40 million, but somewhat greater than the EEC estimate of $16 million. As a result of the GATT finding, the United States suspended concessions to the EEC equal to $26 million. (Current Economic Developments, Issue No. 689, November 26, 1963, p. 7; Washington National Records Center, E/CBA/REP Files: FRC 72 A 6248, Current Economic Developments; also, GATT Press Release “Report on the Panel on Poultry,” GATT/819, November 21, 1963)