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Common Market Industries Attack Published Rates

20th April 1962, Page 30
20th April 1962
Page 30
Page 30, 20th April 1962 — Common Market Industries Attack Published Rates
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Which of the following most accurately describes the problem?

—but Trade Bodies Favour Forked Tariffs

THE Union of Industries of the European Community industrial federations of "the Six "—have now commented officially on the Schaus memorandum on a common transport policy for E.E.C. They express satisfaction at the principles of freedom embodied in the policy and stress that there should be freedom of competition and that transport should not be Used as an instrument of general economic policy.

U.N.I.C.E. attach great importance to freedom of choice for transport users, including freedom to hire, and also ask for the widening of international road transport quotas, to the point where complete liberation occurs at the same time as total liberation of trade. On the other hand. U.N.I.C.E. have "distinct doubts" about equalization taxes, which they consider dangerous, over-complicated and likely to create a precedent for other economic activities. Own-account and transit transport should, they think, be freed without delay. The suggested publication of forked tariffs (i.e., quoting maximum and minimum rates) would only be acceptable under certain strict conditions. It should be a brief, temporary method only, prevented from becoming another restrictive measure by the gradual abolition of quotas, discriminatory taxes on international transport and equalization taxes. The " prongs '' of the fork should be as wide apart aspossible. Application of the method would he conditional upon: the right of the transport contractor to fix, for his transport concern alone, different maximum and minimum prices from those adopted in his country if he can justify this for technical or commercial reasons: the right of contractors to align their prices with those of their competitors, even if this means going outside the limits of the normal "fork" " for their type of transport; and the right of contractors to enter into specific agreements at prices outside the limits of the fork, but not lower than the marginal cost. (The Italian representatives refused to accept these definitions.) Meanwhile, the Permanent Conference of the Chambers of Commerce of the E.E.C., while expressing "very clear-cut reservations" about equalization taxes. welcome the idea of forked rates.


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