No C 115/32 Official  Journal  of the European  Communities 28. 9. 74 
Point  38: 
Delete  point  38. 
Argument 
Since  it is realized  that  production  targets  must  be established,  the situation  in other  parts  of the 
world  has to be taken  into  consideration. 
Point  38 is therefore  superfluous. 
R esult  of the vote  : 
for: 30 
against:  50 
abstentions:  4. 
Opinion  on the  agricultural  aspects  of the  multilateral  negotiations  in GATT 
The text  on which  the  Opinion  is based  has  not  been  published  in the  Official  Journal 
of the European  Communities. 
A. LEGAL  BASIS  FOR  THE  OPINION 
At its 110th  plenary  session  held  on 28 and  29 March  1973  the  Committee,  acting  on 
a proposal  from  the  Bureau,  decided  to deliver  an Opinion  on the  abovementioned 
subject  on its own  initiative. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its Opinion  on the  above  matter  at its 
118th  plenary  session,  held  in Brussels  on 27 and  28 February  1974. 
The full  text  of the  Opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE: 
Having  regard  to the  Decision  of its Bureau  on 27 
March  1973  to  entrust  the  Section  for  External 
Relations  with  the  preparation  of an Opinion  on the 
memorandum  from  the  Commission  to the  Council 
on the  development  of an overall  approach  to trade 
in view  of the  coming  multilateral  negotiations  in 
GATT; 
Having  regard  to the  view  of the  Committee  that  it 
should  make  known  its initial  reactions  to the  overall approach,  while  reserving  the  right  to carry  out  at a 
later  date  a detailed  examination  of the  various 
aspects  of these  negotiations; 
Having  regard  to its Opinion  on the  abovementioned 
memorandum,  delivered  on 24 May  1973; 
Having  regard  to the  supplementary  Opinion  of the 
Section  for  Agriculture  on the  agricultural  aspect  of 
the negotiations  delivered  on 4 October  1973; 
28. 9. 74 Official  Journal  of the European  Communities No C 115/33 
Having  regard  to the Report  submitted  by Mr Romer, 
Rapporteur,  and  the Opinion  adopted  by the Section 
at its meeting  on 15 January  1974; 
Having  regard  to the proceedings  of its 118th  plenary 
session  held  on 27 and  28 February  1974; 
Whereas  it was  affirmed,  in the overall  view  adopted 
by the Council  of Ministers  at its meeting  of 25 and 
26 June  1973,  that  neither  the  principles  nor  the 
mechanisms  of the  CAP  should  be  called  into 
question  or be a subject  for negotiation; 
Whereas  the  integration  of the  Community,  in 
contributing  to the economic  and  social  development 
of the  peoples  of Europe,  has  undoubtedly  been  a 
stimulating  factor  in world  trade; 
Whereas  the  Nine  will  participate  in international 
negotiations  in an  outward  looking  spirit  while 
preserving  the  fundamental  elements  of their  unity 
and their  basic  aims; 
Whereas  it is necessary  to seek  special  solutions  for 
agricultural  products; 
Whereas  since  the  establishment  of the  common 
market,  the  EEC  has  followed  a policy  of giving 
aid to the developing  countries,  either  by association 
agreements  or  by  granting  preferential  trade 
agreements  (food  and  agricultural  products)  and 
generalized  preferences;  and  whereas  this  policy  was 
intended,  although  it has  not  always  been  suc-
cessful,  to allow  exports  from  the  developing 
countries  to gain  an increasing  share  of Community 
markets;  whereas  however  it must  be  admitted 
that it has  not  resulted  in a sufficient  improvement 
of these  countries  position, 
Has adopted,  with  2 abstentions 
THE  FOLLOWING  OPINION: lateral  trade  negotiations  in GATT,  and  being  ready 
to take  initiatives  designed  to contribute  to their 
success. 
It subscribes  to the  general  principles  reaffirmed  at 
Tokyo  and  in particular  to the will  expressed  by all 
the participants  to eliminate,  or at least  reduce  as 
much  as possible,  the  tariff  and  other  barriers 
impeding  harmonious  development  of world  trade. 
The Committee  believes  that  the harmonious  develop-
ment  of world  trade  — an objective  to be pursued 
through  the GATT  negotiations  — must  go together 
with  strong  Community  efforts  to redress  existing 
regional,  social  and  sectoral  imbalances. 
In particular,  this  development  of world  trade  must 
not impede  the  establishment  of the  conditions 
necessary  to ensure  harmonious  development  of the 
agricultural  sector,  which,  while  being  characterized 
by a large  degree  of disparity  between  the  regions 
of the Community  (living  conditions,  work,  income), 
is nevertheless  a sector  essential  to the  economic 
and social  life  of the  Community,  both  because  it 
has to ensure  the  supply  of food  for consumers  at 
reasonable  prices  and  in sufficient  quantity  and  for 
the important  part  it plays  in safe-guarding  the envi-
ronment  and  the quality  of life.  As regards  trade  in 
agricultural  products,  the  Committee  is pleased  to 
hear that  the  special  character  of agriculture  was 
recognized  in Article  3 (e) of the Tokyo  Declaration, 
this indirectly  implying  that  special  solutions  must 
be sought  for  the  agricultural  products  concerned. 
2. The  Committee  applauds  the  Council's  declar-
ation  that  the development  of trade  is not an end  in 
itself  but  one  of the  means  of realizing  the broader 
economic  and  social  objectives  — as reaffirmed  by 
the Paris  Summit  Conference  —  with  are  to 
characterize  the  future  development  of the  Com-
munity,  especially  towards  economic  and  monetary 
union. 
General  comments 
1. The  Committee  considers  that  the  decisive  part 
played  by the EEC  in world  trade,  both  as regards 
industrial  products  and  food  and  agricultural 
products,  and  the role  incumbent  upon  the enlarged 
Community  with  regard  to the developing  countries, 
justify  the EEC  participating  actively  in the  multi-3. The  positive  start  made  to the  negotiations  has 
been  somewhat  overshadowed  by recent  events  — 
the war  in the  Middle  East  and  the  oil crisis.  The 
Committee  considers  that  the  EEC  should  continue 
to declare  itself  willing  to embark  on the negotiations 
proper  in Geneva,  with  the other  partners  in GATT, 
in the expectation  that  these  countries  will  all obtain 
their  negotiating  briefs. 
No C 115/34 Official  Journal  of the European  Communities 28. 9. 74 
Negotiating  methods  in the  agricultural  sector 
4. The  Committee  knows  that  in the initial  working 
meetings  in Geneva  there  have  been  certain  procedural 
difficulties  regarding  the  structure  of the  individual 
committees'  and  sub-committees'  work.  The  Com-
mittee  thinks  it proper  for agricultural  questions  to 
be dealt  with  by one  main  committee,  as had  been 
the case;  but this  should  not preclude  this  committee 
working  as closely  as possible  with  the  seven  sub-
committees  set up in accordance  with  Article  3 of 
the Tokyo  Declaration.  It would,  for  instance,  be 
unrealistic  for one  of these  committees  to deal  with 
questions  regarding  support  for  the  developing 
countries  without  covering  the  problems  of agri-
cultural  products  at the  same  time.  There  are  still 
differing  views  as to what  solutions  need  to be 
planned  in order  to improve  the conditions  of inter-
national  trade  but,  on the  other  hand,  there  is a 
fairly  large  measure  of agreement  on the  analysis 
of these  problems,  which  can  be summarized  as 
follows: 
— in defining  agricultural  policies  all governments 
are guided  by considerations  which  are  at once 
economic,  social  and  political.  The  variety  of 
the situations  at present  has  led  to different 
support  measures  being  adopted,  which  are 
difficult  to compare  or even  reconcile  with  each 
other; 
— most  agricultural  policies  provide  for  various 
forms  of support  and  protection  intended  to 
ensure  a fair  level  of income  for  farming  com-
munities  while  at the same  time  seeking  to offer 
reasonable  prices  to consumers.  These  policies 
have  as a general  rule  prevented  farm  incomes 
from  falling  relatively  speaking,  but  they  have 
rarely,  and  this  goes  also  for  the  Common 
Agricultural  Policy,  enabled  the average  incomes 
obtained  in agriculture  to catch  up with  average 
incomes  in the other  economic  sectors,  nor  have 
they provided  a fair  solution  to the problems  of 
disparities  of income  within  the  agricultural 
sector  itself; 
— in certain  countries  special  efforts  have  been 
made  to aid  the  restructuring  of agriculture. 
However,  the  transfer  of population  which  this 
restructuring  calls  for has  already  reached  quite 
high levels,  and  in some  countries  the  rate  of 
these  transfers  is determined  by the  possibilities 
of absorbing  labour  in other  sectors  of the 
economy  and  by the  need  to ensure  that  the 
active  agricultural  population  enjoys  structures which  provide  it with  a satisfactory  standard  of 
living.  Thus  agricultural  policies  are  being  tied 
more  and  more  to considerations  which  transcend 
the agricultural  sector; 
— although  world  trade  in agricultural  products 
has shown  considerable  expansion  over  the past 
10 years  (a 52%  increase  excluding  intra-EEC 
trade),  like  other  primary  sectors,  it suffers  from 
the lack  of effective  international  coordination. 
Consequently  the Committee  refers  to the Ministers' 
Declaration  adopted  at Tokyo  on 14 September  1973 
and agrees  that,  as regards  agriculture,  the  nego-
tiations  must  embrace  an approach  'which,  while  in 
line with  the  general  objectives  of the  negotiations, 
should  take  account  of the  special  characteristics 
and problems  of this  sector'.  This  approach  seems 
to coincide  with  the argument  upheld  by the Com-
munity,  which  could  not  contemplate  the search  for 
a world-level  solution  which  would  jeopardize  the 
specific  characteristics  of the  different  agricultural 
policies. 
The Committee,  for its part,  confirms  its view  that 
neither  the principles  nor  the  main  elements  of the 
mechanisms  of the  CAP  should  be a subject  for 
negotiation,  on the understanding  that  the EEC,  for 
its part,  will  continue  its  efforts  towards  a 
restructuring  of agriculture. 
The Committee  considers,  however,  that  if the 
GATT  negotiations  were  to ensure  a relative  stability 
of world  markets  to be achieved  within  the  frame-
work  of world  product-by-product  arrangements, 
certain  mechanisms  for the common  organization  of 
the market  could  be applied,  taking  into  account  the 
new conditions  which  would  be created.  For instance, 
the variability  of levies  in the Community  would  be 
reduced  by real  stability  of world  agricultural  prices. 
5. The  Committee  also  notes  that  the world  markets 
in many  primary  agricultural  products  (cereals, 
sugar,  soya,  meat,  etc.)  have  been  characterized  by a 
considerable  rise  in prices,  caused  also,  at the present 
time,  by  an imbalance  between  production  and 
consumption  (shortage). 
6. This  leads  the Committee  to make  the following 
comments: 
— it would  be dangerous,  both  for  producers  and 
consumers,  to think  of supplying  world  markets 
in food  and  agricultural  products  by making  use 
solely  of the output  potential  of countries  which 
28. 9. 74 Official  Journal  of the European  Communities No C 115/35 
produce  at the  lowest  cost  prices.  Supply  from 
these  countries  could  not  satisfy  an  ever-
increasing  overall  demand  (1). 
— Moreover  we  would  have  to reckon  with  the 
hazards  of over-concentrated  production  which 
could  lead  to a — possibly  permanent  — insecure 
supply  situation  entailing  unstable  world  prices. 
At the same  time  it is necessary  that  a better  and 
more  rational  utilization  at international  level 
of the different  output  potentials  be achieved  and 
it is therefore  necessary  to contemplate  at inter-
national  level  setting-up  the  most  appropriate 
instruments  for allowing  the expansion  of world 
trade  under  stable  conditions. 
7. From  what  has  gone  before  the  Committee 
concludes  that  while  comparative  advantage  should 
be one  of the  factors  in negotiation  in the  agri-
cultural  sector,  it is not  realistic  to take  account 
solely  of this  factor,  as some  countries  have  proposed. 
In addition,  the interests  of the developing  countries 
lie both  in a relative  stability  of world  prices  at a 
remunerative  level  and  in improved  access  to world 
markets  for their  agricultural  products,  and these  need 
to be taken  into  account  in the  negotiations.  This 
concern  was  moreover  emphasized  at the third  United 
Nations  Conference  on  Trade  and  Development 
(UNCTAD)  in a resolution  relating  to the problems 
of and  the policies  for primary  products.  In addition, 
the Summit  Conference  of the Heads  of State  or of 
Government,  held  in Paris  in autumn  1972,  reaffirmed 
the EEC's  interests  in taking  account  of problems 
affecting  primary  products  so as to bring  about  an 
increase  in the exports  of the  developing  countries. 
8. Finally,  the  Committee  considers  that  the  im-
plementation  of  world  arrangements  and  the 
application  of the  instruments  necessary  to make 
them  work  call  for  a reorganization  ensuring  the 
stability  of the international  monetary  system. 
World  product-by-product  arrangements 
9. The  Committee  considers  it desirable  that 
discipline  be established  on the  world  market  in 
certain  agricultural  products  by means  of appropriate 
international  arrangements,  such  as those  proposed 
in Chapter  VI,  paragraph  4 of the  memorandum 
entitled  'Development  of an overall  approach  to trade 
in view  of the  coming  multilateral  negotiations  in 
GATT'.  The  objective  is the expansion  of trade  in 
relatively  stable  world  markets  in accordance  with 
(x) Canada  and  the  USA  together  produce  approximately 
18 % of the  world's  wheat  and  28 % of the  world's 
cereals,  see also  statistics  contained  in the report  of the 
Section  for  Agriculture. the principles  and  the main  element  of the mechanisms 
of existing  agricultural  policies.  The  Committee 
stresses  the  need  to arrive  at an internationally 
agreed  definition  of production  guidelines  and 
objectives  so as to ensure  a supply,  at fair  prices, 
which  is adapted  to ever-increasing  world  require-
ments. 
10. The  Committee  considers  that  the  list  of 
products  for  which  the  Community  proposes  inter-
national  arangements  can  be supplemented  by other 
products,  for  example  vegetable  fats  and  certain 
tropical  products  which  are of direct  interest  to the 
developing  countries. 
In this  connection,  the Committee  regrets  the course 
taken  by the negotiations  concerning  an international 
sugar  agreement,  in which  the  EEC  was  not  in a 
position  to put forward  a common  attitude.  Here  the 
Community  could  have  played  a constructive  role  — 
but the  chance  was  not  seized.  The  Committee 
considers  that  too  often  there  is an enormous  gap 
between  the  EEC's  intentions  in the  interplay 
between  the  world's  nations  and  what  actually 
happens. 
The Committee  calls  upon  the  EEC  institutions  to 
take the steps  necessary  for them  to at least  partici-
pate in the administrative  arrangements  in connection 
with  the  sugar  agreement,  thus  showing  that  in 
future  there  is a desire  to have  a common  position 
in the negotiations. 
However,  the Committee  stresses  that  it is aware  of 
the difficulties  of carrying  through  international 
arrangements  of this  nature  upon  a realistic  foun-
dation.  To do this  there  should  be as many  countries 
as possible  participating  in such  agreements  and  they 
should  prove  that  they  are really  willing  to cooperate 
and comply  with  the rules  laid  down. 
Other  agricultural  products 
11. The  Committee  considers  that  for the products 
which  do  not  lend  themselves  to international 
arrangements  it is desirable  to draw  up in GATT 
a genuine  code  of good  conduct  comprising  market-
ing norms,  export  time  schedules,  etc.,  — and  not 
simply  a concerted  discipline,  which  the  Committee 
considers  is too vague  a measure  to ensure  that  trade 
is carried  out  correctly.  Here  too,  as mentioned 
above,  the difficulties  of maintaining  such  a system 
are quite  obvious  to the  Committee.  In the  past  it 
has, unfortunately,  been  repeatedly  shown  that  such 
a code  of practice  cannot  be adhered  to in difficult 
situations.  Provision  should  also  be made  for  a 
safeguard  clause  vis-a-vis  exports  from  the  state-
trading  countries  of products  such  as wTine,  tobacco, 
fruit  and  vegetables,  which  are already  subjected  to 
stiff competition  in the  Community  and  which  are, 
No C 115/36 Official  Journal  of the European  Communities 28. 9. 74 
in the majority  of cases,  very  sensitive  products.  The 
importance  of these  products  to the agricultural  and 
general  economy  of certain  regions  of the  Com-
munity  (the  Mediterranean  regions)  in vital,  especially 
from  the point  of view  of employment  opportunities. 
In the  majority  of cases  these  regions  are  also  the 
most  deprived  areas  of the Community. 
12. From  what  has  gone  before,  the  Committee 
concludes  that  the  negotiations  on these  products 
cannot  have  as their  sole  objective  a quantitative 
voluntary  export  restraint. 
13. As  regards  the  products  of the  food  and  agri-
cultural  industries  the  Committee  stresses  that  any 
commitments  made  in the GATT  negotiations  should 
only be accepted  by the Community  after  decisions 
have  been  adopted  concerning  the primary  products 
necessary  to these  industries. 
Reciprocity 
14. On  the  question  of the  principle  of reci-
procity  which  must  be a feature  of the  GATT 
negotiations,  the Committee  has  examined  the scope 
of the  mandate  given  by the  Council  to the  Com-
mission,  in which  mention  is made  of a mutual 
commitment  entailing  overall  reciprocity. 
The Committee  is aware  that  the negotiations  must 
be conducted  on the  basis  of mutual  commitment 
entailing  overall  reciprocity.  While  being  part  of an 
overall  framework,  the  reciprocity  principle  must 
not interfere  with  the  internal  balance  of the  agri-
cultural  sector.  In particular,  it believes  that  a 
reciprocity  should  be sought  by means  of equivalence 
of commitments  within  the  framework  of inter-
national  product-by-product  arrangements.  However, 
this general  rule  on product-by-product  negotiations 
must  not  preclude  enough  flexibility  being  shown  in 
the course  of the meetings  to allow  several  products 
to be linked  and  negotiated  on together,  where  this 
turns  out to be expedient  in practice. 
This  reciprocity  can  only  be ensured  if one  takes 
into account  the  effects  of these  commitments  on 
the situation  in each  agricultural  market.  As regards 
products  which  are not covered  by national  arrange-
ments,  reciprocity  will  have  to be sought  on the 
basis  of a mutual  commitment  aimed  at respect  of 
certain  marketing  conditions  on world  markets. 
The Committee  also  considers  that  the definition  of 
the principle  of reciprocity  with  the  developing 
countries  must  be based  on and  take  account  of the conclusions  of the  third  UNCTAD  Conference,  a 
viewpoint  which  seems  to be reaffirmed  in Article  5 
of the Tokyo  Declaration  (J). 
15. Finally,  the Committee  wishes  to draw  attention 
to the Commission's  efforts  to date  to involve  in the 
preparation  of the coming  international  negotiations 
the socio-trade  interests  concerned. 
It welcomes  this  collaboration  and  hopes  that  the 
Commission  will  continue  along  this  path,  in 
particular  by providing  for a rapid  and  continuous 
dissemination  of the  results  of the  negotiations  and 
by consulting  trade  circles  if and  when  the Council 
modifies  the negotiating  brief  which  it will  give  to 
the Commission. 
16. In conclusion,  the  Committee  points  out  that 
it did  not  tackle  the  question  of the  additional 
measures  to be taken  for  products  of particular 
interest  to the  developing  countries.  In view  of the 
improvements  which  the  EEC  wishes  to introduce 
to the  generalized  preferences  for  1974,  the  Com-
mittee  intends  to return  to this  matter  in its forth-
coming  Opinion  on all  aspects  of the  GATT 
negotiations. 
Done  at Brussels,  28 February  1974. 
The Chairman 
of the Economic  and  Social  Committee 
Alfons  LAPPAS 
(') 'The  developed  countries  do not  expect  reciprocity  for 
commitments  made  by them  in the  negotiations  to 
reduce  or remove  tariff  and  other  barriers  to the trade 
of developing  countries,  i.e.,  the  developed  countries 
do not except  the developing  countries,  in the course  of 
the trade  negotiations,  to make  contributions  which 
are inconsistent  with  their  individual  development, 
financial  and  trade  needs.  The  Ministers  recognize  the 
need  for special  measures  to be taken  in the negotiations 
to assist  the  developing  countries  in their  efforts  to 
increase  their  export  earnings  and  promote  their 
economic  development  and,  where  appropriate,  for 
priority  attention  to be given  to products  or areas  of 
interest  to developing  countries.  They  also  recognize 
the importance  of maintaining  and  improving  the 
Generalized  System  of Preferences.  They  further  recog-
nize the  importance  of the  application  of differential 
measures  to developing  countries  in ways  which  will 
provide  special  and  more  favourable  treatment  for them 
in areas  of the  negotiations  where  this  is feasible  and 
appropriate'. 
28. 9. 74 Official  Journal  of the  European  Communities No C 115/37 
ANNEX 
to the  Opinion  of the  Economic  and  Social  Committee 
The following  amendement  was  rejected  in the course  of the proceedings: 
Section  7 
Delete  the first  sentence. 
Result  of the vote: 
for: 29 
against: 
abstentions: 36 
13. 
Opinion  on the  place  and  role  of the  Economic  and  Social  Committee  in the institutional 
machinery  of the  Community  in the  context  of a possible  evolution  thereof 
The Opinion  of the  Committee  is not  based  on any  text. 
At its 118th  plenary  session  held  on 28 and  29 January  1974  the  Committee,  acting 
on a proposal  from  the  Bureau,  decided  to deliver  an opinion  on  the  abovementioned 
subject  on its own  initiative. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its Opinion  on the  above  matter  at its 
119th  plenary  session,  held  in Brussels  on 27 and  28 March  1974. 
The full  text  of the  Opinion  is as follows: A. LEGAL  BASIS  FOR  THE  OPINION 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE: Social  Committee  to advise  on its own  initiative  on 
all questions  affecting  the Community'; 
Having  regard  to the  Decision  to this  effect  adopted 
by the Council  of Ministers  on 12 February  1974; 
Having  regard  to the  Decision  of the  Heads  of State 
or Government  at their  meeting  in Paris  on 21 Octo-
ber 1972,  inviting  the  Community  Institutions  to 
'recognize  in future  the  right  of the  Economic  and Having  regard  to Article  20 of its revised  Rules  of 
Procedure,  which  was  approved  by the  Council  on 
4 March  1974;