Nov 8, 1984

EFTA MINISTERS URGE GENUINE ROLLBACK OF PROTECTIONIST MEASURES.

GENEVA, NOVEMBER 6 (IFDA/CHAKRAVARTHI RAGHAVAN) -- Ministers of the European Free Trade Association (EFTA) have called for determined multilateral efforts to resist protectionism and achieve "a genuine rollback" of protectionist measures.-

EFTA groups together Austria, Finland, Iceland, Norway, Portugal, Sweden and Switzerland, and has special arrangements with Spain and Yugoslavia.-

The EFTA Council of Ministers met in Geneva November 5 and 6 and was chaired by Kurt Furgler, vice-president of the Swiss Federal Council.-

In their communique the Ministers noted that while recovery in the U.S. has been strong, "it remained relatively weak in Europe".-

"Restrictive economic policies and structural problems have contributed to holding back the recovery in Europe and the number of persons unemployed, already very high, has continued to rise and causes serious concern", the Ministers said.-

The reduction of inflation rates has, however, given many governments a greater flexibility in the pursuit of their economic policies.-

But slower world economic growth and continued high interest rates would pose serious problems, especially for the debt-ridden Third World countries.-

"The way in which the problems of these countries are dealt with will have an important impact on global economic developments", they added.-

The Ministers expressed deep concern about "persistent protectionist tendencies" which have led to severe strains and uncertainty in international trade relations.-

"These developments pose a threat to economic growth and must be resisted through determined multilateral efforts", the Ministers said.-

"Ministers stressed the importance of achieving a genuine roll-back of protectionist measures", the communique added.-

As a confidence-building measure EFTA countries have already taken steps to accelerate the tariff cuts of the Tokyo Round and would urge their trading partners to do the same.-

The communique added:

"Further steps to restore confidence in the open trading system are however needed".-

"Of particular importance in this context is the implementation of the work programme adopted at the 1982 GATT Ministerial meeting".-

"Further progress in carrying out the programme could help to lay the foundation for a new round of multilateral trade negotiations, a round which would have to be carefully prepared".-

The Ministers welcomed the recent progress in the negotiations for enlargement of the European Economic Community, and reiterated their understanding and sympathy for Portugal’s application for EEC membership.-

Noting the decisive phase in the negotiations for Spain entering the EEC, the EFTA Ministers stressed that during the transitional period "non-discriminatory treatment for EFTA countries on the Spanish market must be safeguarded".-

The next meeting of the EFTA Ministers will be held in Vienna on May 9 and 10, 1985, and will be followed by a commemorative meeting to mark the 25th anniversary of the founding of EFTA.-