RESTRICTED 7 May 1957

CONSULTATION UNDER ARTICLE XII: 4 (b) WITH

SWEDEN

Basic Document prepared by the secretariat

I» .INTRODUCTORY STATEMENT1

Sweden has, since the beginning of post-war efforts in this field, taken'an active part in the work for the liberalization of international tredee It has participated in several GATT tariff conferences end the reductions granted have further accentuated Sweden's position es e low tariff country0 It has fulfilled the requirements of liberalization set forth by the OEEC and has for several yerrs liberalized more than 90 per cent of its imports from the OEEC-countries. The few non-liberalized commodities are allowed to enter the Swedish m? rket according to very liberal licensing policies., Uhen judging the importance of these measures it should be observed that about two-thirds of Sweden's total imports traditionally come from these countriesc

The Swedish policy in the OEEC is of interest also from the point of view of GATT, as the Swedish free list has been made applicable also to many GATT countries vhich are not members of the OEEC, such as Australia, Burmaj Ceylon. Finlandf India, Indonesia; New Zealand, Pakistan, Rhodesia- Nyasalend and the Union of South Africa, A special free list in relation to the dollar area has been introduced in order to favour trade as much as possible with such GATT countries as the United States and Canada.

7urthermores a generous import policy is applied towards the countries which are not formally covered by the free lists0 The import quotas in the Swedish bilateral trade agreements with such countries are either very amply sufficient or not restrictive becpuse the licensing policy in practice is being so liberally applied that most imports are in fact carried out without limitations0

Swedish imports from the dollar area were like all other imports free during the first years after the war (until March 1947). A heavy deteriora­ tion of the balance-of-ppyments position and a considerable reduction of the currency reserves et that time necessitated the reintroduction of import restrictionso The Swedish import policy} however, has perpetually aimed at liberalization to the full extent permitted by foreign exchange situation.

Text supplied by the Swedish Government,

MTT/42/57 MGT/42/57 Page 2

As to the dollar field this wss first echieved through extended dollsr import schemes, During 1954-1956 a gradual liberalization of imports from the dollar are8 was undertaken by publishing more end more extensive dollar free lists. This "formal liberalization" now affects sbout 70 per cent of Sweden's import from the dollar area in 19560 Moreover the general foreign exchange situation during the past year has permitted the authorities to issue licences for most dollsr area goods of importance without quantitative limits,, Thus in addition to imports included in the above-mentioned per­ centage, cars (| 18 million), copra (# 12 million) end bananas ($ 4 million), inter alia, were imported practically without restrictions during 1956.

The dollar free list at present still falls short of the OEEC free list, but the Swedish authorities hsve not so far found their way to remove remaining restrictions towards the dollar area,, When Judging the possibi­ lities of extending the present libsralization, the import policy prrsued by other -European countries should also be taken into account» Sweden has - and this was 8lso the case before World War II - a structural dollar deficit. As long ss convertibility does not exist the extent of Swedish dollar imports must mainly be adjusted to the si^e of its dollar income. The greater pert of Swedish exports to the dollar area consists of a few goods, such as pulp, iron ore and steel. All these goods are very sensitive to the general eco­ nomic situation end exports have varied considerably,, High customs barriers and other restrictions also hamper exports in many sectors„ The prospects are thus uncertain and the Swedish authorities do net feel too optimistic as to the possibilities of increasing exports to the dollar area*

The preceding paragraphs are intended to give a broad outline of pre­ sent liberal policies pursued by Sweden, and of the very modest scope of the remaining restrictions. The facts as well as some information on licensing techniques etc. will be spelt out in detail in the following text.

II. SYSTiM AND METHODS OF THE RESTRICTIONS

(a) Legal Basis of the Restrictions

The legal basis for the import restrictions in force in Sweden is (i) the Royal Proclamation No, 82, 194-7, which introduced a general system of im­ port licences, for the purpose of conserving foreign exchange; (ii) a de­ cision by Parliament in 1947 concerning agricultural policy, and (iii) a decision by Parliament in 1948 concerning fishery policy.

Pursuant to the provisions of the Royal Proclamation No, 82, 1947 imports of commodities other than those described in a general free list moy not as a principle take place without an import licence issued by the State Agricultural Marketing Board (certain foodstuffs, fertilizers) or by the National Commission of Industry and Commerce (other goods); the • utho- rities may, however, according to decisions by the King in Council establish special free lists. MOT/42/57 Page 3

Detailed licensing provisions in force in regard to the main agricultural products (meat, dairy products, eggs, grains, sugar, fats and oil) are contained in the Royal Ordinances Nos. 401 and No. 403, and in the Royal Proclamations No. 414 and No. 417, 1956, and in regard to fish and fish products in the Royal Ordinance No. 372, 1953. These provisions are based on the Parliament decisions of 1947 and 1948 mentioned above.

(b) Administrative Basis of the Restrictions

The Agricultural Marketing Board is an administrative governmental body, the Chairman and members of which are appointed by the King in Council. It has representatives of both producers and consumers. Its primary function is to put into operation agricultural marketing policies as determined by the Government. It does not import or export any product on its own behalf. All provisions concerning import regulation in the agricultural sphere are published promptly and distributed free of charge ( Stat ens jordbruksnamnds cirkulà'r ). Before 1 September 1956 some non­ governmental bodies had exclusive right to import agricultural products or to issue import licences in special fields, but these rights were discontinued after the introduction of the agricultural import regime which will be mentioned later in this document.

Appeals against the decisions of the Board may be made to the King in Council»

The National Commission of Industry and Commerce is also an admini­ strative governmental body. The King in Council appoints the Chairman and the members of the Commission, who at present comprise four representatives of Swedish industry, trade and labour unions. To the Commission is attached a staff of about fifty persons. It publishes promptly its licensing regulations in a special series of notices (Meddelanden fran Staten handels-och industrlkommission) distributed free of charge. The Commission's constitution requires that it cooperate with commercial and industrial organizations.

Appeals against the decisions of the Commission may be made to the King in Council.

(c) Methods used in restricting imports

The system of import control may be conveniently described under the following headings:

A. The General Free List B. Free List for Dollar Area C. Free List for FPU Area and other Specified Countries

Da Transit-Dollar List MGT/42/57 Page 4

E. Global Quotas F. Bilateral Arrangements G. Prohibition of Imports H. Other methods (e.g» the case by esse method)

A. Certain commodities are included in a General Free List valid for imports from any source, without restriction snd without licensing; these are: stereotype blocks, books, sheet music, braille materials, newspapers, periodicals, maps 8nd ice.

B# There is sn extensive free list for imports from the dollar area. These goods may be imported without restriction and are exempted from the licensing requirements. 2 C. There is also an extensive free list for imports from the EPU area, Finland and Yugoslavia. These goods may also be imported without restriction, and are exempted from the licensing requirements, D. Certain commodities of dollar country origin contained in a "transit-dollar list" are in principle admitted freely provided that (i) if the purchases are made in dollar countries, payments are made in "transit dollars", which are obtainable from commercial banks at a small premium and (ii) if the goods are purchased in a non-doll8r country, payments are made in accordance with the regu­ lations governing payments between Sweden and such countries.

Items covered by this list are: aircraft, copper, lead, tin, zinc, coffee, tobacco products, certain vegetable oils and fatty scias and flesh fruits except apples, pears and bananas. (The three lists mentioned above - under B, C, and D, - which are in Swedish only, have been lodged with the secretariat.)

E. Global quotas are established for the importation of salt herring from the 0E2C countries and of goldsmith's wares and preeious stones from the EPU area. In the importation of goods under global quota, however, it has been possible to apply such freedom in granting licences during the past year that no restriction of imports has taken place. During the period 10 January to 31 May 1957 salt herring could be imported without licence from the OEEC area.

The dollar area comprises Bolivia, Canada, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Liberia, Mexico, Nicaragua, Panama, Philippines, United States of America and United States Dependencies and Venezuela.

i 'The EPU area comprises the member countries of EPU, their dependent overseas territories and the countries in the Sterling Area and the Belgian, French, Italian, Portuguese and Dutch currency areas, in­ cluding Indonesia. MGT/42/57 Page 5

F, Bilateral agreements or arrangements have been concluded by Sweden with a number of countries (see Section (f))«

G. The only prohibitions of imports are those made for public health, veterinary and similar reasons,.

H. (i) The importation of commodities from the dollar area not free-listed or automatically licensed under the transit-dollar scheme are permitted, for some commodities corresponding to Swedish require­ ments for ethers according to directives periodically drawn up with due regard to dollar currency availabilities and import needs.

(ii) The importation of the very few commodities from the EPU area, not free-listed or globally licensed, are subject to liberal or free licensing policyo

(ili) The importation of commodities from the non-dollar area and the non-EHJ area (except Finland and. ogoslavia) are still formally re­ stricted but licences are generally granted on a liberal and non­ discriminatory basis.

In issuing licences the organizations concerned - the Agricultural Narketing Board and the National Commission of Industry and Commerce - work on the basis of limits governed by certain directives set within the framework of belence-cf-psyments and other criteria, Certain quotas are established under bilateral agreements or arrangements,, Imports under trade agreements ere in most cases allowed to exceed the quotes established •therein»

Licences are given promptly - as quickly as administrative procedures permit - usually within one week after the application is made»

The period of validity covers the remaining part of the current quarter in which the application is made plias six months thereafter, in the case of manufactured goods0 For agricultural products the period of validity is shorter- usually one to two months - though considerations relating to the period of transport required are taken into account also»

No licence fees are chargede

Imports of items under free lists are made on the submission of ordinary customs documents and do not require applications for foreign exchange allocations ©

When import restrictions and licensing requirements were more exten­ sive than they are at present, allocation of licences among individual importers was on the "previous representative period" system, with a oertaln percentage reeorred Tor rLew-somers. MOT/42/57 Page 6

la the rather limited field of restrictions now applicable (as nearly oil licences 8re granted automatically) each case is determined on its merits or by settlement among the importers concerned. The Swedish authorities state that allocation of licences among individual importers presents no specisl problem in present circumstances.

A special statement has been made by the Swedish authorities on the subject of import and export regulations concerning agricultural products, which is relevant to a study of both "methods" end "categories of goods affected". It is as follows:

New rules hsve been adopted by the Government and the Riksdag for the application of the decision taken by them in 1947 regarding the price support scheme for agriculture in Sweden, These rules have been brought into force as from 1 September 1956 for an initial period of three years. In connection herewith certain important changes hsve been made in the system of import and export controls of agricultural products. Thus, in principle, quantitative re­ strictions have been removed, provided the domestic prices on the products concerned are within certain predetermined price limits (a lower limit ond an upper oné")T On the same presumption the ex- clusive rights enjoyed earlier by certain associations to import or export certain products (meat, eggs, sugar, bread, grains) have been abolished, A réintroduction of these exclusive rights, as well as of quantitative restrictions, may be considered if the prices fall below the lower or rise above the upper price limit. Thus, in future, the protection for domestic production will in principle not be effected through quantitative controls but through levies placed on imported goods. Customs duties have been abolished end replaced by fixed import levies, the amount of which has been determined for the initial three year period (only for a few products (oil cakes and feeding-stuffs) import levies are variable). For the most important products so-called "middle" prices have also been determined. These prices have been balanced in such a way that the total income of farmers will make it possible for them to attain an income parity with other comparable groups of the population, which is the prin­ cipal objective of the Swedish agricultural policy. The "middle" prices have served as a guide for the determination of the import levies and the price limits, but after the actual introduction of the system they have no special function to fulfil» Thus, they do not constitute any form of guaranteed prices. On the contrary, domestic prises will be allowed, under the influence of price move­ ments abroad, to fluctuate between the fixed price limits, which as a rule are about 10-15 per cent above or below the "middle" price. As a principle, however, the lower price limit must always be pro­ tected, in the first place by raising the import levy and In the second place by reintroducing quantitative restrictions. If, en the. other hand, the price should rise above the upper price limit, the import levy will be reduced or removed or quantitative control of exports introduced- MGT/42/57 Page 7

The besic regulations for the agricultural policy are set out in a Government Bill of 1947 (Kungl. Maj

(d) Categories of goods affected

Because of the liberalization policy applied by Sweden in regard to imports there remain only a relptively small number of commodities which are still subject to quantitative restrictions.

The commodities on the General Free List have already been specified in nection (c) of this document. Details of commodities in the -iHJ area and specified Countries Free List the Dollar Area Free List and the Transit-Dollar List are available in documents lodged with the secre­ tariat by the Swedish authorities.

Although the EPU area, and the Dollar Area, Free Lists are not applicable to countries outside these areas and the importation of com­ modities from these non-EHJ and non-dollar areas are still formally restricted licences are generally granted on a liberal and non­ discriminatory basis.

Accordingly the commodities of chief interest in the context of this document are those contained in Annex I (8) - (c) which, as will be seen, includes chiefly some thirty agricultural, horticultural or fishery items, oil, motor spirit etc., certain finished textiles and clothing, auto­ mobiles, buses, trucks, parts for assembly and ships. Attention is drawn, however, to the fact that most items contained are either quite liberalized when imported from the EFU-area (0) or automatically licensed from the Dollar Area (D). Reference should at this point be made again to the statement by the Swedish authorities on page 6 concerning the new system applying to agricultural products. (e) Proportion of Imports covered by each method used The following table shows th-t on the basis of 1955 trade, 75.7 per cent of Swedish total imports was free from licence under the regulations in force on 1 Ju, y 1956, and that this percentage has been raised to just over 78 under the regulations in force on 1 January 1957, MGT/42/5? Page 8 Breakdown of Imports according tc Licensing Category

millions of US dollars and percentage of totcl imports (-£1 * 5.18 Sw.Kroner)

Regulations in force in* June 1954 June 195o 1 July 1956 1 Jan 1957

Import trade of year: 1953 1954 1955 1955

I Imports on Private Account 1. Licencenfree imports 960 (60.7) 1,325 (74.6) 1,506 (75.7) 1,554 (78.1) 2. Imports licensed with­ out fixed quotas 123 ( 7.8) 120 ( 6.8) 180 ( 9.0) 164 ( 8.2) 3. Global quotes 193 (12.2) 4 ( 0.2) 6 ( 0.3) 6 ( 0.3) 4. Allocation of quota 243 (15.4) 220 (12.4) 227 (11.4) 216 (11.8) shares *• 39 ( 2.2) 31 ( 1.6) 23 ( 1.2) 5. Cther methods 62 ( 3.9) 68 ( 3.C> 39 ( 2.0) 26 ( 1.4) II State Trading

Total imports 1,581(100) 1,776(100) 1,989(100) l,989(l0i.)

Under this heading arc included quotas established under trade agreements

The following table, supplied by the Swedish authorities, gives similar details for imports in 1956, calculated on the basis of import restrictions in force on 1 January 1957, and shows -Disc a brerk-dewn of imports according to certain areas of origin.

Preliminary;'" details of Sweden's imports in 1955 calcul '.ted on the be sis of import restrictions in force on 1 January 1957 f 0.00,000 $ 1 = 5.18 kr.

OEJC metropolitan countries Dollar. Other Total (-,») outer sterling p^ea, Finland, ^u:oa Countries Indcnosia end Yugoslavia

1. Imports on Private account 1. Licence-Free and 1,436 240 73 L,749 (79.3) automatic licensing 2. Imports licensed 7 92 73 172 ( 7.8) without fixed qu: tas 3. Global quota s 6 - - 6 ( 0.3) MGT/42/57 Page 9

OEEC metropolitan countries Dollar Other Total {%) outer sterling ares, Finland, Area Countries Indonesia and Yugoslavia

4. Allocation of quotas (established 144 106 250 (11,3) under trade agreements)

5. Other methods

II. State trading 14 13 29 ( 1.3)

Total imports 1,607 345 254 2,206 (100.0)

(f) Treatment of Imports from different Countries or Currency Areas

Under Section (c): "Methods used in restricting imports" information has already been given on some aspects of this subject, and a certain amount of repetition here is unavoidable. Different systems of import control apply to:

(i) the EHJ area, Finland and Yugoslavia

(ii) the dollar area

(iii) the rest of the world

(i) The OEEC free list specifies items which may be imported from the EHJ area, Finland end Yugoslavia without restriction and without any licensing requirements.

Imports from 0E2C countries are liberalized to the extent of 92.6 per cent calculated on the basis of imports on private account from OEEC countries in 1948, In addition imports from these countries of agricultural products aro free from restriction sr lor.g 8s the domestic prices of these products remain within certain levels(see page 6 ).

Global quotas are established for the importation of salt herring from OEEC countries, and of goldsmith's wares and precious stones from the EHJ area (including Indonesia). However, during the past year licences have been issued without limitation, and in the case of salt herring from OEEC countries, licensing requirements have, so far, beon suspended during a trial period until 31 May 1957. The importation of the very few commodities from the EFU area, not free-listed or globally licensed, are subject to liberal or free-licensing policy»

A free list valid for imports from the dollar area was made effective on 1 October 1954- and has since been frequently c extended. Calculated on the basis of trade on private account with the United States and Canada in 1953$ and on import restrictions in force on 1 January 1957, 68 per cent of imports have been freed and exempted from licensing requirements. This list includes many engineering products, basic materials, semi­ manufactures and consumer goodsc All products liberalized vis-à-vis the dollar area are on the OEEC free liste

As stated in Section (b) of this document some commodities of dollar country origin are contained in a "transit-dollar list" and are, subject to certain conditions, in principle admitted freely. Imports from dollar countries not free-listed or automatically licensed under the transit-dollar scheme are permitted for some commodities corresponding to Swedish requirements for others according to directives periodically drawn up with due regard to dollar currency availabilities and import needs, Imports from non-dollar and non-EPU area (except Finland and Yugoslavia) are still formally restricted, but licences are generally granted on a liberal and non-discriminatory basis (as already mentioned coffee from Brazil and citrus fruit from Israel end Spain can be imported freely without licence)c

For certain imports still subject to restrictions, quotas or com­ modity lists (pour mémoire) are established under bilateral trade agreements. Quota agreements are in force with all OEËC countries except Ireland, Iceland^ Turkey and Greece and with all Eastern European countries except Albania, Eastern Germany and Rumania. Imports under the trade agreements are in most cases allowed to exceed the quotas established therein,» With Eastern Germany and Rumania trade is conducted under global compensation arrangements. Trade list agreements have been concluded with Burma and India» Trade with Japan is governed by the general regulations set out in a trade agreement, in which no Swedish import quotas are established,, The trading arrangements with Spain provide for the free issue of licences for imports of goods on the OEEC free list. Use of State Trading or Governmental Monopoly and the restrictive operation of such regimes Three groups of commodities are at present subject to State trading: (i) certain alcoholic beverages,

(ii) raw tobacco, tobacco products, machines for the manufacture of tobacco productsj cigarette piper and cigarette carton, MGT/42/57 Pege U

(iii) militery aircraft end combat vessels^ end erms end amunition for military use.,

4±) State trading in certain winesj spirits and liquors is carried on by the Wine end Spirits Monopoly Company,

This State Trading in alcoholic beverages is based on social policy, 8nd has no special restrictive operation relevant to the subject matter of this nnalysis0

(ii) The Swedish Tobacco Monopoly is the sole importer of the products mentioned above;reteilers appointed by the Monopoly, however, may import tobacco products for sale. The Swedish authorities have advised that this system is operated mainly for fiscal reasons.

(Iii) No elaboration of this subject seems necessary in this document.

(h ) Measures taken in p_receding ye«rs to relax restrictions

In January end July 1956. the dollar free list was enlarged by the addition of certain base metals, linseed oil, certain automobile parts end various consumer goods^ On 1 September 1956 (in the case of sugar on 1 May 1956) e number of agricultural products previously under state trading were reverted to private trade and quantitative restrictions lifted for as long as prices remain within certain fixed limits.

Chronologic ally zixe changes 3ince 1 January 1954, were as fellows:

1 October 1954

The QEEC free list was extended, raising the liberalization from 91.2 to 92,6 per cent on the 1948 basisv A dollar free list covering some 45 per cenc cf totrl imports in 1953 wis introdcued for goods imported from the dollar area,, Licences were no longer required for purchases either directly in the dollar eree against payment in dollars or in QEEC countries end their "ssocietcc:. areas> Finland and Yugoslavia against payment in conformity with the regulations governing payments between Sweden end these r-cspective -ountriesa Likewise a transit- dollar list was introduced containing dollar goods not included in the dollar free list. Licences for such goods would be issued provided certain conditions were met,,

8 January 1955

The free list for duller imports was slightly enlarged by the addition of certain good3 that were forKior.ly un the ntransit-doller list". The liberalization percentage rose to 58 per cent, MGT/42/57 Pago 12

1 January 1956

The doller free list was further extended by including lubricating oils, iron and steel scraps and such steel sheets and plates as were not hitherto liberalized. These items were previously listed on the "transit-dollar list". This measure raised the liberalization per­ centage to 64 per cent.

1 May 1956

Sugar was reverted to private trade and imports were freed in relation to countries to which the 01EC free list applies. If prices fluctuate outside certain fixed limits state trading can be reintroduced.

1 July 1956

The dollar free list was enlarged by the inclusion of certain base metals, linseed oil and various consumer goods. Most of these products were on the "transit-dollar list".

1 September 1956

For a number of agricultural products (bread grains, meat and pig meat and eggs) import nonopolies and quantitative restrictions were suspended for as long as the domestic prices remain within certain fixed price limits. To maintain domestic market prices within the upper and lower price limits fixed - or in some cases flexible - import levies were substituted for the import duties and quantitative restrictions. The new scheme is to remain in force for an initial period of three years. Imports of all goods covered by the agricultural price regulation system and fats regulation system were free listed from the EHJ area, Finland and Yugoslavia.

III. EFFECTS ON TRADE

The Swedish authorities have submitted the following information on this subject-

In this section it is proposed to deal very briefly with certain aspects of the restrictions in relation, firstly, to agricultural, horticultural end similar products, and secondly, to manufactured goods.

As was pointed out in Section (c) quantitative restrictions which were previously applied to the importation of certain agricultural products have in almost all -cases now been removed, and a system of import levies introduced. MGT/42/57. P&ge 23

For the importation of apples and pears quantitative restrictions are still applied during a certain period of the year, while imports during the rest of the year are liberalized. It is admitted that these quantitative restrictions do have a protective effoct for local pro­ duction, but the Swedish authorities have informed their producers that this system cannot be continued indefinitely, and that ultimately, if protection.against foreign competition on the home market should be necessary and desirable, it will be given by means of thetariff.

The Swedish authorities have also called attention to the fact that most other European countries apply equivalent restrictions in relation to the importation of .these products, and that, if Sweden wore to liberalise their importation completely, surpluses from other countries would inevitably find their way on to the Swedish market so croating on undesirable and an'inequitable position for its own producers and the industry generally.

The Swedish authorities have also stated that, during the war, investment in the apple and pear producing industries was increased, and that after-the war they undoubtedly enjoyed protection under the system of balance-of-paymentsquantitative restrictions. They consider that considerable hardship and loss of investment would result if these industries were to be exposed too quickly or too sharply to competition from imports at a certain period of the year.

Concerning the restrictions applicable to manufactured goods, the Swedish authorities have stated that during the early post-war years when quantitative restrictions for balance-of-payments reasons were extensive in their country, a number of industries derived temporary protective benefits from these measures. The policy of the Swedish Government has, however, been to remove as early as possible existing quantitative restrictions which has led to the result t&at now imports of manufactured goods are to a very substantial extent liberalized. Most of the necessary internal re-adjustments {of investment, transfer of labour force etc.) have thus already taken place and the difficulties and hardships have already been experienced and overcome. In the textile industry, to take only one example, local production fell considerably, and 10,000 workers in it moved to other employment.

There are therefore few commodities manufactured in Sweden which appear to be enjoying incidental protective effects from quantitative restrictions still in force.

Consideration has been given by the Swedish authorities to the methods suggested by the contracting parties for minimizing incidental protective effects of balance-of-payments restrictions (see The Use of Quantitative Restrictions for Protective and other Commercial Purposes: GATT Publication 1950/3, page 12, English text). In particular the Swedish authorities have: (i) discouraged investment in industries which could not be expected to compete, or to survive, without quantitative restrictions ; MGT/42/57 Page 14

(ii) frequently informed producers that they should not rely on the incidental protection they may be receiving from belance-of^.-prpmentsrestrictions ;

(iil) administered the restrictions on as flexible a basis as foreign exchange considerations permit;

(iv) • not imposed prohibitions against imports and as a rule allowed some imports of commodities of more than just token quantities;

(v) applied such discrimination as exists only where it is compelled by foreign exchange difficulties;

(vi) not employed narrow classifications or restrictive definitions of commodities eligible to enter usder my given quote„

The SwerJsh authorities state that the extensive free-listing which the?" now employ means that incidental protective effects can occur only in connexion with a very limited number of commodities.

Concerning steps taken to avoid damage to the trade of other member countries it has been stated, as a result of the particularly extensive free-listing, of the comprehensive quotas established ±n the majority of agreements, and of the liberal licensing policy adopted, the question- is not applicable at present to Swedish balance-of-payments restrictions*

The Swedish authorities have advised that they are fully prepared to discuss any aspect of the subject with countries interested in-any . particular -.voduct or products remaining on the "restricted" list. Page 15

ANNEX I

Swedish imports still subject to licensing or other special procedures when imported from the dollar- and JffU-area (on 1 April 19571

0 = GEX - free-listed or (0) .automatic licensing (D) T» Automatic licensing against dollars

Imports still sub;* T\ to licenses

(a) Imported under state-trading arrangements;

0 alcoholic beverages (D) 0 raw tobacco 0 arms and ammunition

(b) Imported under state-trading arrangements prior to September 1956;

* 0 certain live animals * C fresh meat, bacon and ham * 0 eggs * C wheat end rye * 0 flour *(D)0 sugar

(c) Imported by private traders;

* 0 potatoes * 0 copra * 0 canned meat *(D)0 salted horse-meat *(I) 0 edible mrts of sheep, hcrse, cattle and swine certain fresh fish * 0 dried milk and cream apples and pears (seasonally liberalized from all countries) * 0 butter dyes and cheese dyes, containing oil 0 bananas * 0 certain sauces (0) honey * 0 other grains (excluding rice) (D)0 soy beans*, oil cakes*, feeding stuffs

* Subject to fixed import levies • Subject to flexible import levies ICT/42/57 Page 16

* 0 peanuts and certain other oil seeds (other than linseed), starch * 0 beans, peas * 0 olive and cotton seed oil * 0 dairy produce (including margarine or other substitutes) * 0 certain seeds * 0 fish oils * 0 dried albumen (D) 0 coal and coke 0 oil (crude and part refined, motor spirit, diesel and other fuel oils) paints containing gold 0 hemp, tow 0 certain finished textiles 0 finished clothing (including stockings) gold, platinum and manufactures gems automobiles, buses, trucks and parts for assembly ships

(d) Dollar imports under the Transit Dollar System (automatic licensing)

0 fresh citrus fruits and grapes 0 coffee and coffee substitutes 0 certain vegetable oils and fatty acids 0 tobacco products (state trading arrangements) 0 crude copier, lead, tin and zinc 0 aircraft

Subject to fixed import levies