Word: tariff
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France would benefit from any decrease in rates on agricultural products, while Germany would suffer. But de Gaulle is not concerned with agriculture alone. This spring the Kennedy round of tariff negotiations begins, and if they are successful, the United States will assume a more important position in the European economy. Such increased economic ties would strengthen Atlantic partnership. De Gaulle is not eager for that, nor does he believe that the economic results would benefit France. Germany, on the other hand, is enthusiastic about a closer economic relationship with the United States. Chancellor Ludwig Erhard is convinced that increased...
...obvious solution is a compromise. According to The Economist, de Gaulle would promise Erhard his support of the general purposes of the Kennedy tariff negotiations if Germany would concede France's agricultural demands. By this ploy he would achieve his immediate aim and at the same time avoid committing himself to the specifics of the Kennedy rounds. Claiming he had only supported the goals and not the details of the tariff negotiations, he would be in a position to sabotage them and thus promote an independent Europe, stretching from the Atlantic to the Urals, with himself as its elder statesmen...
There is one great difficulty with de Gaulle's scheme. It assumes Germany will be willing to make concessions on agricultural prices and at the same time settle for a broad statement on the Kennedy tariff negotiations. If, as seems likely, Germany refuses to accede, de Gaulle's plans would be seriously undermined...
...last summer threatened to pull out of the EEC unless agreement on rice, meat and dairy products was reached by Dec. 31. But in Bonn, the West German Government insisted that the agricultural agreement be worked out in conjunction with the so-called "Kennedy round" - proposed talks on worldwide tariff reductions. The result was a clash of wills...
...extreme consequences" if De Gaulle's deadline is not met, and Paris warned that it would hold Germany responsible if the Market broke up. What the Germans feared was that once they give in on farm prices, France would refuse to come across on the "Kennedy round," whose tariff cuts would favor German industry more than the French. But France countered, in effect, that the U.S.'s own position for the Kennedy round would not be worked out until the spring, so that advance commitments were impossible...