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Chile withdrew three concessions granted at Geneva, on the following items: butyric and sulphuric acid; fuses, wicks and igniters, for use in mines; and trucks, vans and buses. All but the butyric and sulphuric acid were originally negotiated with the United States. The butyric and sulphuric acid was initially negotiated with Benelux.
As a result of this action, the import duty on fuses, wicks and igniters, formerly bound at 0.15 gold peso per gross kilo, and the import duty on trucks, vans and buses with body, formerly bound at 0.10 gold peso per net kilo, will no longer be bound and may be increased. Chilean 1mports of these products from the United States in 1948 amounted to $492,000, of which the trucks, vans and buses with bodies accounted for $411 ,000. The withdrawal of the concession on trucks, vans and buses does not affect chassis only or cha8818 with cabe only, as both are dutlable as chassis under tariff item Ex-1480 at 0.075 gold peso per gros8 kilo which remains bound.
As compensation for the trade 1068 involved in the withdrawal of concessions initially granted to the United States, Chile made reductions of 30 percent in the duty rate on cash and sales registers, and automatic sales vending machines, to 2.80 gold pesos per legal kilo; and 25 percent in the duty on certain pharmaceutical products, to 4.50 gold pe 80s per gro88 kilo, and on unrectified turpentine, to 0.15 gold peso per gro 88 kilo. In addition, Chile established a special classification for trucks with special dump bodies and trucks with reinforced steel cab and body for the transportation of minerals, for which the auty will be bound at 0.10 gold peso per net kilo, the same favorable rate that applied to the trucks, vans and buses with body under the concession now withdrawn.
Exports to Chile of producte on which these compensatory concessions were granted amounted in 1948 to about $255, 600, not including the trade involved in the important new classification established for dump trucks and ore hauling trucks, for which no figures are available.
In the Article XXVIII negotiations with Benelux, Chile withdrew the concession on butyric and sulphuric acid, United States exports of which to Chile averaged about $4,000 in the 3 years 1938, 1947 and 1948. In return Chile gave Benelux a reduction of 33 1/3 percent in the duty on zinc bars, bringing the rate to 0.10 gold peso per gro88 kilo. The average value of Chilean imports of zinc bars from the United States in 1948 and 1949 was about $15,000.
Imports from the United States of products arrected by the modirications were valued at $29, 684,000 in 1949. Or this total, cotton fabrics and manufactures accounted for $11,737,000, while fabrics and manufactures of rayon, nylon, and similar synthetic fibers contributed $15,063, 000 to the total. The balance of $2,884,000 comprised imports of women's and children's footwear, crackers and biscuits, whisky, printed or lithographed sheets of cellulose or its derivatives, and miscellaneous manufactured plastic products.
The compensatory concessions granted the United States by Cuba covered Cuban imports from the United States in 1949 valued at about $30,745,000. The duty reductions obtained as compensation will benefit a wide range of United States manufactures, including lubricating olle, radio and television apparatus, refrigerating and air-conditioning equipment, electric washing machines, and passenger automobiles. Other United States exports to obtain duty reductions were: raisins, canned baby foods, cutlery, electric light bulbs, special steel in bars, coal tar colors, sulphur, ammonia and other chemical salts, natural and synthetic essential olle, explosives, cigarette paper, phonographs, and musical wind instruments,
Negotiations on the upward adjustment of duties in the Cuban cotton and rayon schedules were started in Washington in the summer of 1950 and subsequently transferred to Torquay. There the United States and Cuba reached agree. ment on the cotton textile modifications and the corresponding compensations, but failed to agree on the rayon rate adjustments. Cuba, never theless, decided to take action on both cotton and rayon textiles under Article XXVIII 80 as to facilitate the procedures involved in putting the adjustments into effect, as well as on a list of miscellaneous products. Agreement was finally reached on compensations for the rayon and m18 cellaneous modifications. The commodities arrected by all modifications and all Compensatory concessions and the adjusted rates of duty appearing in the Cuban Torquay schedule are given in the tabulation which follows this summary.
The upward revision of Cuba's textile duties 18 intended to grant additional protection to the growing textile industry, apparently unable to produce numerous types of fabrics in competition with imported piece goods. The Cuban Government was unwilling to bind textile duties at their
present moderate level for another three-year period. preferring to take action under Article XXVIII and to substitute compensatory duty reductions in le 68 sensitive lines for the Geneva concessions on cotton and rayon textiles.
Direct comparisons between the former and adjusted rates of duty on textile fabrics and manufactures cannot readily be made because of the complexity of the Cuban tarirr struo ture, the modirications introduced into the tarirr classifications, and the changes made in the bas16 for the assessment of duties. However, weighted average ad valorem equivalente calculated on the basis of Cuban 1949 statistics indicate that the duties on cotton piece goods were increased moderately and that the rates on rayon fabrics were raised substantially.
During the course of the negotiations, an adjustment was also made in the Cuban duties on cotton batting and cotton wiping waste, which had been the subject of previous dls. cussion between the two Governments. On these products Cuba made substantial reductions in the currently erfective duties which, however, represented considerable increases from their pre-1948 level.
No new agreement between the United States and Cuba was concluded at Torquay. Partly responsible for this failure to expand their reciprocal commitments under the General Agreement were the long and complicated renegotiations of previous commitments and compensatory adjustments under Article XXVIII, and consultations with respect to the reduction of tarirr preferences.
A clarification of the problems involved in the operation of the Cuban concession to the United States on rice was also undertaken at Torquay. No mutually satisfactory solution having been reached by the close of the Conference, it was decided to continue discussions at a later date. The Cuban Delegation notified this negotiation as ane under Article XXVIII. Since it was not completed, it may be continued pursuant to action taken by the Contracting Parties under Article XXV permitting the completion of a few unfinished Article XXVIII negotiations no twithstanding signature of the Declaration extending the da te in that Article.
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