Evening star., 1962-05-23
0AS Nations
Hit Tariffs Of
Common Mart
By GEORGE SHERMAN
star staff Writer

The inter-American COM
munity is launching an all-out
assault on trade discrimination
against Latin-American ex-
ports to the West European
Common Market.
A personal representative of
DR.. Jose Mora, Secretary of
the Organization of American
States, leaves on a special mis-
sion this evening to Brussels,
capital" of the Common Mar
ket.
According to officials here,
DR.. Walter Sedwitz, director of
the OAS Department Of Eco
nomic Affairs, Is to deliver a
strongly worded" note to WAL
ter Hallstein, president of the
Commission of the European
Economic Community.
Ambassadors Cite Problems
At the same time Latin
American ambassadors to all
members of the Common Mar
ket are delivering similar notes
outlining their special prob
lens. The Organization of
American States also is opening
an office in Paris to continue
the trade discussions.
Members Of the European
Common Market are France,
Italy, West Germany, Neither
lands, Belgium and Luxem-
bourg. British membership is
currently under negotiation.
The members have agreed to
end tariffs progressively among
themselves, while erecting COM
mon tariffs against outside
products.
Coffee Top Issue
The OAS protest dwells
principally on the effect on
coffee exports, although meat,
wool and cocoa also are men,
toned. The note was drawn
up by special committee COM
posed of Brazil, Colombia,
Costa Rica, Ell Salvador and
Mexico, but has the backing
OF all 20 GAS membership
Guiding the United States.
Current Latin-American ex-
ports to members of the Com
mon Market run at about SIS
billion a year. Coffee accounts
for $500 million, or one-fifth
of the total coffee exports of
the Western hemisphere.
Experts here estimate that
over $3.50 million a year is al
ready lost in coffee exports due
to consumption taxes running
at 100 per cent in France, Italy
and Germany. In these coun-
tries coffee is a luxury which
costs as much as Is cents a
cup. Experts say If the dis
criminatory taxes were lifted,
coffee exports would double to
$500 million a year by 1910.
Fear Blow TO 2 Nations
Argentina and Uruguay on
the southern tip Of South
America currently earn so per
cent of their foreign trade re-
ceipts through sale Of meat,
wool and cereals in West Eu-
rope. If the common high agri-
cultural tariff now under nego-
tiation is erected, it would vir-
tually wipe out this income.
Officials point out that these
trade problems are intimately
bound up with the success or
failure of the inter-American
Alliance for Progress. This pro-
gram calls for gigantic mobili-
cation of all available re-
sources for quick economic and
social reform. If West Europe
which accounts for 40 per
cent of world trad de-were
walled off by tariff barriers. a
major source of development
income would be lost.
The OAS has picked this
point to make overtures about
the trade restrictions because
the Common Market has come
to a crucial junction in its de-
velopment. Negotiations for
British entry, for a common
agricultural tariff. and for ex-
tending tariff concessions to
former overseas territories of
members are all reaching their
climax. o
Latin Am erican coffee
growers-which include IA OF
the 20 OAS members-are par
ticularly worried about newly
independent African competi-
tors receiving preference in
Europe. Officials here believe
the developed countries Of Eu-
rope must find some way to
give foreign aid to their former
possessions without hurting
under-developed Latin America.