TARIFFS and TRADE 3 July 1981 Limited Distribution

RESTRICTED GENERAL AGREEMENT ON COM.TD/W/337 TARIFFS AND TRADE 3 July 1981 Limited Distribution

Committee on Trade and Development Forty-fourth Session 22 July 1981

TROPICAL PRODUCTS; INFORMATION ON THE COMMERCIAL POLICY SITUATION AND TRADE FLOWS Oilseeds, vegetable oils and oilcakes Note by the Secretariat Table of Contents1

Page Introduction 2 Section I: Production, market situation and prices 2 Section II: Exports and imports 7 Section III: Per capita consumption of fats and oils 18 Section IV: Commercial policy situation 21 Annex 12: Imports and exports by quantity and value of certain vegetable oilseeds and oils in 1977, 1978 and 1979 Annex 2: Gross imports of fats and oils into individual countries

Annex 3: Pre- and post-Tokyo Round tariff rates and imports according to tariff treatment (all oilseeds, vegetable oils and oilcakes)

the 1In Attachment to this note, information is provided on I. Certain measures affecting production, consumption and exports, II. Health and sanitary regulations and standards, and III. Certain developments in other international organizations.

2Annexes 1-3 are being issued as an addendum to this document. COM.TD/W/337 Page 2

Oilseeds, Vegetable Oils and Oilcakes Introduction 1. At the Committee's meeting of 11-12 November 1980, the Chairman noted that there was a broad consensus that work with regard to tropical products should proceed on a step-by-step basis. As a first step in this connexion, the secretariat was requested to provide detailed data on the commercial policy situation and trade flows for products listed in the Annex to document COM.TD/W/319. The hope was expressed that in the light of the information provided, the Committee would be in a position to exchange views on the post- Tokyo Round situation for these products in each country and thus focus on particular issues and problems which continued to affect access to markets for exports of developing countries. It was understood that such information would be furnished without prejudice to the question of the definition of tropical products or to the position of any delegation with regard to the treatment of issues in this area. As an additional step, the Committee would be expected to examine the possibilities for making further progress towards trade liberalization taking into account any factors which might have affected action in the Tokyo Round. 2. This paper provides data on oilseeds and vegetable oils (crude and processed), in particular those of tropical origin, including copra and coconut oil, palm kernels and palm kernel oil, and palm oil, as well as some other oilseeds and oils primarily produced in tropical areas such as groundnuts and groundnut oil, castor beans and castor oil and some miscellaneous oilseeds and oils of lesser importance in international trade. In addition, a number of references are made to certain other oils and seeds (e.g. soya beans and cotton seeds) of importance in terms of production and trade so as to provide an overall perspective of the situation while focussing mainly on oils predominantly of tropical origin. This paper also includes data on oilcakes and meals. 3. Section 1 provides information on production, the market situation and outlook and prices for the products covered. Section II provides data on exports and imports. Section III refers to per capita consumption of fats and oils in a number of markets. Section IV looks at the commercial policy measures applicable to selected oilseeds, vegetable oils and oilcakes with reference to tariff reductions made in the Tokyo Round, the post-Tokyo Round tariff situation, and some non-tariff measures. An attachment discusses certain questions regarding health and sanitary regulations and standards and refers to some recent developments in other international organizations of relevance to international trade in this area. Annexes to this document are being circulated separately as Add.l. The secretariat stands ready to provide such supplementary information as is available that the Committee may find of use in its work. SECTION I: Production, market situation and prices Production 4. Table 1 shows "production" and "gross exports" of different edible soap fats and oils in 1979, 1980 (estimate) and 1981 (forecast). "Production" figures for vegetable oils shown in this table refer to the oil equivalent of the oil seed crop which is available for crushing, irrespective of whether it is crushed in the producing country or exported in the form of oilseeds for crushing in the importing country. It may be noted that world production of all edible/soap fats and oils increased steadily between 1977 and 1980 from 48.1 million tonnes in 1977 to 56.2 million tonnes in 1979 and to an estimated 60.9 million tonnes in 1980. COM. TD/W/337 Page 3 TABLE 1

TOTALEDIBLESOAP ESTIMATED WORLDPRODUCTION AND GROSSEXPORTSFOR 1979 AND 1980: FORECASTS OF FATS AND OILS PRODUCTIONAND EXPORT AVAILABLE FOR 1981 - BY MAIN PRODUCTS TOTALESTIMATIFS NONDLAUX DELA PRODUCTIONET DES EXPORTATIONS ERUTES FOUR 1979ET1980 PREVISIONS DE LA PRODUTION ET DES DISPOXIBILITES EXPORTABLES FOUR 1981, PAR PRINCIPAUXPRODUTTS TOTALESGRASAS ACETTES ESTIMACIONDE LAPRODUCCION XUNDIL TOTAL Y DE LASEXPORTACIONES BRUTAS EN 1979 y 1980,PREVI- CONECTIBLES SAPON. PRINCIPALES Unit: 000metric tons Stocks at beginning Domestic Production of marketingLA Year LAS - SIONESDEPRODUCCIONestimateYDEDISPONIBILLADADESDEEXPORTACION 1981PRODUCTOS estimate PARA estimatePOR forecast forecast 19791980 1981 1979 1980 1981 1979 1980 1981

Butter(fat content) 421 430 425 5 615 5 590 5 590 995 1 045 1 055 Lard 17 23. 23 4 830 5 040 4 960 535 485 510 EDIBLE FATS 438 453 448 10 445 10 630 10 550 1 530 1530 1 565

Cottonneed oil 165 119 218 2 930 3 215 3130 395 450 430 Groundnut oil 110 114 113 3 575 3 415 3 255 805 710 465 Olivaoil 688 747 682 1 630 1 530 1 800 280 710 345 Rapeseed oil 163 472 633 3 645 3 9103503 840 11350 Soybeanoil 1 239 1 381 2 549 12 365 15 020 13 130 5 960 7 070 5 790 Sunflowermead oil 190 228 627 4 50 5 525 4575 1 1275 665 850 SOFT OILS 2 555 3 061 4 822 28 795 61532 29 770 10 06511555 9245

Coconut oil 12 9 6 7452 2845 2 985 1 280 1 4351570 Palmkernel oil 22 27 53 810 850 890 400 450 470 LAURIC OILS 34 36 59 3 555 3 695 3 875 1 680 1 885 2 040

Marine oils 18 29 30 1 290 1200 1 195 725 765 735 Pais oil 338 380 419 4 550 5 065 5 385 2 670 2870 3210 Tallow 157 177 177 5 655 5 670 5 670 2 045 1 710 1 685 OTHER EDIBLE/SOAP 513 586 626 11 495 11 935 12 250 5 440 5 345 5 630

misceilaneous edible soap fats& oils - - - 1 955 2 040 2 060 2851 1 285 1 285

600 FATSANDOILS 3 540 4 136 5 955 56 245 60915 56 505 20 000 21 19 765

1/Exports include data for: margaine, shortening and hydrogenated oils. TOTALEDIBLE/SOAP(Source: FAO) COM.TD/W/337 Page 4

5. Coconuts, palm oil and palm kernels are produced in most tropical countries in Africa, Asia, the Caribbean, Central America and the Pacific for domestic consumption and/or for export. Main producers of coconuts include the Philippines, Indonesia, India, Malaysia, Sri Lanka, Papua New Guinea and Mexico, of palm oil Malaysia, Indonesia, Nigeria, China, Ivory Coast, Papua New Guinea and Cameroon, of palm kernels Malaysia, Nigeria, Indonesia, Zaire, Benin, Cameroon, Ivory Coast and Sierra Leone. 6. Groundnuts are grown by a large number of countries. Developing countries produced over 80 per cent of world output in recent years. Main producers and exporters include India, China, Senegal, the United States, Sudan, Argentina, Brazil and Gambia. Since 1965 the output of groundnuts in West African countries such as Senegal, Nigeria and Niger has declined mainly because of climatic and other problems. While groundnuts have traditionally been an important food crop in a number of developing countries, over one-fifth of production has entered international trade in recent years. 7. The main producers and exporters of castor oil include Brazil, India, China and Thailand. Sheanuts are mostly produced in African countries, for example Mali, Nigeria, Upper Volta, Ghana and Benin. The Current Market Situation and Short Term Outlook 8. At the meeting of the FAD Intergovenmental Group on Oilseeds, Oils and Fats held in March 1981, the Group drew the following conclusions regarding the current market situation and short-term outlook for fats and oils as well as oilmeal proteins: "(i) After having grown for three consecutive years to new records, world output from current crops of edible/soap fats and oils as well as oilmeal proteins will fall in 1981 because of unfavourable weather and area diversions to other more remunerative crops in 1980. The fall is forecast at 4 percent and 11 per cent respectively for the two groups of commodities; but despite this, world output would still be close to the long- term trend; (ii) With the fall in output mainly concentrated in exporting countries, export availabilities in 1981 (based on the assumption of unchanged stocks and unchanged prices from the average level of 1980) are estimated to be considerably smaller than the record 1980 exports (7 per cent for edible/soap fats and oils and 10 percent for oilmeal proteins) and about the same as the 1979 exports; (iii) While the expansion in demand is likely to be limited, the prospective volume of demand is expected to result in a stock drawdown in 1981 which would mainly take place in Northern America - the main exporting region - where stocks are concentrated and where production has declined this year; COM.TD/W/337 Page 5

(iv) Even though the tight supply/demand situation, especially for oilmeals, would suggest higher average prices in 1981 compared with 1980, a number of factors have combined to depress and destabilize prices since the end of 1980. Thus, after an upsurge in the second half of 1980 which reflected the deteriorating production prospects, prices (in terms of U.S. dollars) of most oils and oilmeals fell in late 1980 and early 1981. But the price fall has been at least partly offset by currency depreciations in some major importing countries; (v) Economic, monetary and other general factors, could continue to destabilize prices and demand in the short-term ahead. Prospects for 1981/82 production will also have a gradually increasing impact on prices; (vi) The prospective stock reduction this season means that next season will begin with stocks which, though sufficient to meet normal pipeline requirements, may not be adequate to cushion any sizeable production shortfall next season. Thus, the adequacy of supplies next season is unusually dependent on the size of new crops, particularly those to be harvested in the second half of this year in North America, the largest producer and exporter of oilseeds and related products. Current indications for oilseeds crops in this area suggest a possible decline in soybean and rapeseed plantings and a stronger need than usual for adequate and timely rainfall for satisfactory crop development owing to poor soil moisture reserves in parts of the United States; (vii) If, in coming months, production prospects for major oilseed crops in North America indicate that output will not show a marked recovery over 1980 levels, there could be an upward pressure on prices and a measure of uncertainty about the adequacy of supplies in the 1981/82 season. Prices 9. Recent advances in the technology of vegetable oil processing, notably the introduction or development of hydrogenation, interesterification and fractionation, have greatly widened the range of possible end-uses of major vegetable oils and thereby increased their technical interchangeability. This has intensified competition between different vegetable oils. Table 2 shows developments in international market prices with respect to selected fats and oils over the period 1970-1980. 10. While prices of different vegetable oils are not strictly comparable for various reasons (e.g. different degrees of processing), prices of palm oil, soyabean oil, cotton seed oil, sunflower oil, palm kernel oil and coconut oil were within a relatively narrow range of $583-675 per tonne in 1980. Olive oil prices averaged out at $1,823 per tonne in 1980 and groundnut oil at $857 per tonne in the same year. Castor oil prices averaged $1,070 per tonne in 1980, reflecting the demand for technical oils. COM. TD/W/337 Page 6

TABLE 2

INTERNATIONAL MARKET PRICES FOR SELECTEDFATS AND OILSI/ PAIX DEMARCHE INTERNATIONAL FOUR CIRTAINES MATIERSS GRAISSEI/ PRECIOS DEL MERCADO INTERNATIONALFARA DETERMINADAS GRASAS Y AGEITES I/ FAt DE OIL COCONUT PALM KERNEL CASTUE PALM GRAISSE COPEAR GROUNDSUT SOTABEAN COTTONSEED SUNFLOWER OLIVE OU NUlLS PALMISTK RIGIN PALMA ARACMIDE SOJA COTOS TURNESOL GRASA 0 ACEITE COCO ALMENURA P RIGINO PALMA MANI SOJA ALCODON GIRASOLOLIVEOLIVA US$per metric ton ANUAL AVERAGES ...... 319 366 703 1970 294 312 372 563 290 3473/ 331 690 19711972 190 220 967 440 375 715 1973 669 425 243 399329 327 1974 506 1139 2/ 543 3/ 492 904 19751976 390 396 2/ 532 499 2/ 485 1291 419 4352/ 800 563 982 1893 0402/408433 709 1740 1977 582 530 3/ 849 438 731 1978 705 576 9052/ 586 12251284 1093 2/593623660 1979 496 991 600 607 686 1420 1980 998675 6203/ 656l 891 663 647 1070 857 598 657797 768 14861823 FOOTNOTES/NOTES/NOTAS I/ Specificatiese origieeof price series aregivee below. 3/ Change 2/ Lacomplete average. I/ Les specificatiese etle teeq dessour seatdeaddes dessous. 3/ Chaegement de la seriede prix peuf les welt lesspecificatiese. I/ Las de les aspacificaleosej Lee originee preqies ses dades debajo. 2 Premedie incompletse. INTERNATIONAL MARKET PRICES:Specifications isCommodity Price Specification Coconut oil Philippines, c.i.f. Rotterdam/Hamburg PalmKernel Up to 1972, WestAfrican, bulk, c.i.f. Europe oil From 1973 to 1977, Dutch, f.o.b., ex-mill 3/ From 1978 c.i.f. Las Malaysian,sees CaabieesseriesanLeeeuesivee:v RotterdamLeespecificatiese. Pllmoil Up to May1977, Malayan,5% bulk. c.i.f. Europe June1977, Sumtra/Malaysia,5% bulk, c.i.f. W.W. Europe Castor oil Brasilian No.1 c.I.f. Europe (Rotterdam., from August 1974) Groundnut oil Up to 1973, Nigerian 3-5% or Nigerian/Cambian or any c.i.f. Europe origin From 1974, any origin 2-3% c.i.f. Rotterdam Soyabean oil Up to 1971, any origin ex-tank Rotterdan From 1972, crude, Dutch, f.o.b. ex-mill Cottonseed oil 1970, U.S., crude, tank car, f.o.b. south-easternmills (adjusted to make series comparablewith that used for later period) 1971 to April 1978, U.S., PBSY, c.i.f. Rotterdam FromMay 1978, any origin, c.i.f. Rotterda Sunflowerseed Any origin, ex tank, Rotterdam oil Olive oil Spanish/Tunisian, f.o.b./now barrels (up to 1974 f.o.b./any container) (Source: FAO) COM.TD/W/337 Page 7

SECTION II: Exports and Imports Exports 11. Table 1 above also shows world "gross exports" of edible/soap fats and oils. "Gross exports" include actual exports of vegetable oils as well as the oil equivalent of oilseed exports. World "gross exports" of edible/soap fats and oils increased from 16.4 million tonnes in 1977 to 20.0 million tonnes in 1979 and to an estimated 21.6 million tonnes in 1980. An FAO forecast suggests some decrease in world exports to 19.8 million tonnes in 1981. The share of developing countries in world "gross exports" of edible/soap fats and oils was 42 per cent in 1975-77 (average) and 37 per cent in 1978. 12. Table 3 indicates the percentage shares of a number of fats and oils in world gross exports of all edible/soap fats and oils in 1977-1980.

TABLE 3 The shares of different fats and oils in world gross exports of all edible/soap fats and oils in terms of weight ( %) 1980 1977 1978 1979 (estimate)

Coconut oil 8.8 8.7 6.4 6.6 Palm kernel oil 2.0 1.6 2.0 2.1 Palm oil 12.4 11.9 13.4 13.3 Groundnut oil 5.0 4.0 4.0 3,3 Sub-Total of the above 28.2 26.2 25.8 25.3 Soybean oil 28.1 31.4 29.8 32.7 Sunflower seed oil 4.6 6.8 6.4 7.7 Rapeseed oil 6.8 5.2 6.8 6.3 Cottonseed oil 2.4 2.5 2.0 2.1 Olive oil , 1.7 1.4 1.4 1.4 Butter (fat content) and lard 8.6 7.9 7.7 7.1 Tallow 12.5 11.9 10.2 7.9 Marine oils 3.7 3.6 3.6 3.5 All edible/soap fats and oils 100 100 100 100 COM.TD/W/337 Page 8

13. Oilseeds, vegetable oils and oilcakes have been one of the most important commodity groups in the export earnings of developing countries. By way of illustration, their significance in this respect in 1977 for a number of developing countries is shown in the following table: per cent per cent Gambia 86 Brazil 10 Vanuatu 44 Mozambique 8 Senegal 34 Papua New Guinea 8 Paraguay 32 Tunisia 7 Sudan 22 Malawi 6 Philippines 20 Ethiopia 3 Mali 18 Indonesia 2 Malaysia 12 Nicaragua 2 Argentina 10 Thailand 1.3 (Source: UNCTAD Handbook of International Trade and Development Statistics - Supplement 1980) 14. Table 4 shows production and gross exports by quantity of the main producing countries with respect to coconut oil, palm kernel oil, palm oil, groundnut oil, castor oil and sheanut oil. More detailed data showing exports and imports by quantity and value in 1977, 1978 and 1979 are contained in Annex 1 with respect to the above other than sheanut oil, but including also copra, palm kernels, groundnuts and castor beans. 15. Miscellaneous oilseeds and oils of tropical origin and certain countries producing and exporting them are listed below. (These oilseeds and oils are not separately identified in the trade statistics of most countries and therefore comparable trade data are not available.)

Babassu kernels and oil - Brazil, Paraguay Illipe nut - Malaysia (Sarawak), Indonesia Kapok seed - Indonesia, Thailand, Vietnam, Kampuchea Niger seed and oil - Ethiopia, India Cashew nut shell oil - Brazil, India, Mozambique COM.TD/W/337 TABLE 4 Page9 Production and gross exports of coconut oil,palm kernel oil, grountnut oil, castor oil and sheanut oil (worldtotaland(worldmaintotal andproducingcountries) main producing countries) Unit: 000 metric tons stocks atbeginning 1979 1980 estimate 1981 1979 198019811981 1979 1980 1981

Philippines 0851 1 196 1 318 888 993 1 108 Po.v" so Guinea 102 95 92 101 93 90 Malaysia 134* 138* 147* 66 75 87 Sri Lanka 12 9 6 106 65 72 35 2 21 Indonesia 640* 666* 678* 26* 110* 100* Total main 2 067 2 160 2 307 1216 1 273 1 406 India 237* 240* 237* 95* 98* 90* Total other 332 338 327 - - - countries 12 9 6 2 399 2 498 2 634 1 116 1 273 1 406 Other countries 348* 349* 351* 164* 164. 164- world total 2 747 2 847 2 985 1 280 1 437 1 570 Total listed countires as % of world total 87 Total main exportersas % of world total 87

PALMKERNRL OIL/HOIL PALMISTE/ACETTSDE DE ALMENDRA DE PALMA

22 26 53 223 258 282 198 223 256 Nigeria 134* 129* 132* 85* 99* 87* Zaire 33* 33* 33* 18* 19* 19* Sierra Laone _ 1 - 16 14 16 14 13 14 Indonesia 54* 56* 61* 10* 20* 20* IvoryCoast 12* 14* 14* 10* 15* 15* 13* Benin33* 33* 33*l 10*9* 9* Cameroon 21*21* 21*5* 4* 4* Totlal 22 27 53 526 558350592 402 558 592 350 402 422 Other countries 273* 273* 273. 30. 30- 30. World totl 799 831 865 380 432 452 Total listed countries as % of world total 66 92

"Domestic Production of oil (or cake) is defined as the oil (or cake) equivalent of that part of the total crop which is available for crushing, regardless of whether it is crushed in the producing country or exported in the unprocessed form for crushing in the importing country. "Gross Exports" is defined as the total of oil (or cake) exports assuch and the oil (or cake)equivalent of seed exports. The1981 forecasts of export availabilities are based on the assumption of no changein stocks during the forecast year and ofno chang in prices from the averagelevel of 1980. COM. TD/W/337 Page 10 TABLE 4 (continued)

stocks at beginning DomesticProduction Gross Exports 1979 1980 estimate 1981 1979 estimate forecast estimate forecast 1981 1979 1980 1981 1979 1980 1981

Malaysia 306 371 395 2 188 2 565 2 860 9551 2 194 2 523 Indonesia 32* 9* 24* 610* 665* 700* 438* 350* 350* Ivory Coast 132* 167* 170* 50* 88* 90* Papua New Guinea 90* 95* 95* 35 43 49 Camroon 80* 80* 80. 6* 6* 6. Total main exporters 3 100 3 572 3 90 2 484 2 681 3 018 Nigeria 650* 675* 675* - China 184* 190*' 190* Total other - - - main 834 865 865 Totalproducerslisted countries 338 380 419 3 934 4 437 4 770 2 484 2 681 3 018 Other countries 615* 627* 617* 186* 191* 191* World total 4 549 5 064 5 387 2 670 2 872 3 209 Totallisted countries as of world total 86 Total main exprters as % of world total 93

United States 110 114 113 215 215 124 193 170 71* Argentina 193* 84* 84* 164* 129* 34* Senegal 291* 214* 136* 117* 91* 13* Brasil 118* 128* 92* 91* 117* 50* Sudan 199* 204* 192* 62* 51* 51. South Africa 48* 83* 72* 51* 27* 30* China 395* 466* 530* 34* 37* 100* Gambia 37 36* 23* 32* 32* 7* India 1 390* 1 293* 1 344* 20* 6* 40* Totalmainexporters 110 114 113 2886 2723 2597 764 660 396 Other countries 687* 690* 697* 43* 43- 43- world total 3 573 3 413 3 294 807 703 439 Total listed countries as% of world total 81 95 fiures marked vith an Asterisk (*) are FAO estimates based an official and/or unofficial sources; figures marked with an "-"are obtained on the assumption of no change fromthe previous year. For tree crops and animal fats an oils, whichare produced more or less evenly through the year, calendar years are used, i.e. 1979, 1980 and 1981. For annual oilseed crops, marketing years are used to the extent possible. COM.TD/W/337Page11 Page 11

TABLE 4 (continued) (Unit: 000 metric tons) Production Gross Exports Country 1975- 1978 1979 1980 1975- 1978 1979

Castor oil World 304 404 399 430 195 201 257 77 Africa 16 16 17 17 8 6 PROJ.77 5 South America 127 188 165 190 122 149 150 Brazil 113 175 158 182 113 143 140 Asia 134 176 188 194 59 38 94 China 31 42 51 51 2 6 13 India 76 93 101 107 27 5 56 Thailand 15 18 19 19 20 17 11 USSR 22 18 22 22 Sheanut oil World 43 31 33 Africa 129 128 122 126 43 31 33 Benin 6 7 8 6 11 3 Ghana 20 20 20 21 2 1 1 Ivory Coast 2 3 2 2 1 2 2 Mali 37 39 39 40 9 8 8 Nigeria 36 32 34 35 12 6 5 Togo 2 2 3 3 2 2 3 Upper Volta 26 26 16 16 16 12 11

(Source: FAO) COM.TD/W/337 Page 12

Exports in more processed form 16. The available data indicates that developing countries are exporting their oilseed production increasingly in more processed forms. The data in Table 5 shows that developing country exports in the form of oils increased from 57-77 per cent of their aggregate exports of oilseeds and oils in 1977 to 81-84 per cent in 1979 with respect to copra and coconut oil, palm kernels and palm kernel oil, and castor beans and castor oil. However, groundnut oil exports as a share of aggregate exports of groundnuts and groundnut oil from developing countries were relatively stable at 56-57 per cent in 1977-79, largely because a significant part of groundnut production is consumed as edible nuts.

TABLE 5 Exports of selected oilseeds/nuts and oils from developing countries

1977 1979 Seed /nutOil TotalSeed/nut Oil Total

Copra and coconut oil $ million 292. 498 .9 791.6 236 236.1 987.3 1,223 . 4 37 63 100 19 81 100

Palm kernel and oil $ million 76. 2 99 .6 175 .8 57.4 269 9 327.3 3 43 57 100 18 82 100

Palm oil $ millIion 1,057.4 1,372.0 1,372.0

Castor beans and oil $ milllion 35. 0 115. 2 150.2 31 31.1 162.4 193.5 23 77 100 16 84 100

Groundnuts and oil $ million 246. 5 376.9 673.14 203.9 273.9 477.8 100 44 56 43 57 COM.TD/W/337 Page 13

17. Developing countries are also increasing their exports of refined oils and fractionated olein (palm oil) falling within CCCX heading 1507, boiled, oxidized, dehydrated, blown or otherwise modified oils within heading 1508, fatty acids and acid oils from refining within heading 1510, and hydrogenated or solidified oils including palm oil stearine within heading 1512. World- wide comparable trade data for processed oils falling within 1507 are not available. However, fragmentary trade flow data for such oils in a recent year indicate that exporters of processed oils falling within CCCN heading 1507 included Malaysia, Ivory Coast, Singapore, Senegal, Papua New Guinea, India, Argentina and Brazil. 18. Table 6 shows imports of processed vegetable oils falling within CCCN headings 1508, 1510 and 1512 respectively into eleven developed country markets in 1978 and 1979 and main suppliers to those markets in 1979. Malaysia was the second largest supplier of processed oils falling within headings 1508 and 1512 and the third largest supplier of processed oils falling within heading 1510 to developed country markets. Among other countries, India, Brazil and the Ivory Coast were significant suppliers of processed oils falling within heading 1512. COM. TD/W/337 TABLE 6 Page 14 Imports of processed vegetable oils into 11 developed country markets and suppliers to these markets Li.4. S 1. 1bod .)'LI LILS.l.&MAL (OR VECISOL elLLO.UZ1U1111YCMAIU.GLChN C LItKMI.iL MUIFILo I M P C R T S F R O .M IMPURTING TCT DV CutsLRIES 78 VALUE 79 78 CTY79 78 VALUE 78 QTY79 CANADA 1.60 1.31 1942 1304 0.00 0. 03 0 40 JAPAN 0.22 0.31 137 211 0.00 0.00 0 E.E.C. 0.79 1.37 764 956 0.25 0. 15 387 174 0.77 0.93 557 640 0.00 0.00 3 2 0.36 0.40 291 215 0.01. 0.02 8 13 0.75 0.94 691 182 0.02 0.00 12 2 1.57 2.06 1575 1825 0.05 0.12 42 107 SATIIZhLAL.G 0.73 1.07 585 878 0.00 0.00 1 0 AUSTRALIA 3.89 5749 3.24 5027 NEW ZELAND 0.54 0.02 DEVLOP MKTS 7.03 12.88 6547 0.36 3.62 456

MAIN DEVLPO MKTS MAIN CEVLPO MKTS SUPPLIERS VALUE 79 QTY 79 SUPPLIERS VALUE 79QTY E.E.C. 5.68 MALAYS. 3.24 U.S.A 4.91 POLAND 0.30 SWEDEN 0.20 BRAZIL 0.14 A"T TIN 0.10 SPAIN 0.05 CCCN SITI. FAITY A(IDS;ACIO OILS FROM REFINING

I M P C R T S F R OM.. I M P CRTSFOM. IMPURING CRLD TOTOV CLUNIRIES 78 VALUE 79 78 QTY 79 78 VALUE 79 78 QTY 79 UNITED STATES 3.33 6.39 5591 56 06 0.57 2.17 550 2015 CANADA 2.51 2.90 4669 4818 0.00 0.00 0 0 JAPAN 9.65 15.97 12932 17697 1.57 4.00 2623 4983 4331 E.E.C. FATTYAGIDSIACIDOILSFROMREFINIG 50.49 72.13 105834 132792 18.95 31.86 46525 66135 1510 7.17 8.86 9293 9406 377 AUSTRIA 0.18 0.01 39 FIALAND 1.13 1.99 1096 2067 0.01 0.01 9 MOERAY 1.10 1.42 1410 1925 0.00 0.00 4 4 SWEDEN 9.76 14.25 16349 19941 0.46 0. 56 907 SWITZERLAND 5.61 6.24 7730 7022 0.11 0.08 L54 144 AUSTRALIA 2.04 0.23 NEWZERLAND 0.61 0.00 DEVLPO WKTS 90.81 132. 73 165I07 21.89 38.98 51345

MAI N DEVLPO MKTS MAIN DEYLPO MKTS SUPPLIERS VALUE 79 QTY79 79 SUPPLIEAS VALUE 79 QTY79 71 E.E.C. 28.97 U.S.A. 27.59 MALA YS 12-71 NORMAY 10.03 9.70 VUGOSLV 5.98 5.28 BRAZIL 3.55 3.47 ARGNTIN 2.98 PUREAR 2.04 SPAIN 2.44 PULAND 1.75 CZECHOS 1.70 PHILIP 1.41 AUSTRIA 1.26 RGMANIA 1-24 SINGPOR 1.06 0.95 JAPAN 0.84 PURTUG 0.82 ULGAR 0.61 CANADA 0.59 1NDONES 0.44 HUNJGARY 0.37 MORCGCO 0.35 CMINA 0.32 THAILNO 0.28 S.LANKA 0.15 PARGUAT 0.12

1912 4312 ANIPAL GA VEGETABLE OILS ANDFATS .HYDRCGENMATED CR SCLIDIF IFD Ii M P O RT S F R O M ..... IMPURT lNG WORLD TOT DV CUUTRIES 78 VALUE 79 78 QTY 79 78 VALUE 79 78 QTY 79 UNITED STATES 2.31 3.15 2147 2900 1.43 2.72 1790 2706 CANADA 5.91 3.01 6390 2729 0.03 0.18 40 220 JAPAN 2.81 5.08 4426 6662 0.24 1.14 295 991 E.E.C. 14.21 23.76 18481 27161 11.21 18.83 15733 22314 AUSTIRIA 10.93 13-55 13912 14104 0.00 0. 00 1 0 FINLAND 3.16 4.92 3626 4865 0.00 0.00 0 0.96 1.13 581 618 0.00 0.00 0 5.41 7.10 4530 4868 0.00 0.00 0 SWITZERLAND 2.08 1.92 2547 2127 0.04 0.04 54 60 6.37 4442 0.03 88 2.75 0.01 DEVLPD MKTS 47.82 72.81 56644 13.17 22.94 17917

MAIN DEVLPO MATS DEVCPO MKTS SUPPLIERS VALUE 79 QTY79 79 SUPPLIEAS VALUE 7 9 QTY E.E.C. 47.58 NALAYS. 9.36 U.S.A. 7.65 7.61 basa.Miw"AY 6.742.18 BRAZIL 2.51 IVGRY C 1.53 2.18 SINFPUR SLRIAAM 0.42 0.28 CANADA 0.16 JAPAN 0.15 GREECE 0.13 PCLANN 0.04 SPAIN 0.040.44 AUSTRIA ARGNIIN 0.01 FIJI 0.91 PCRCCCO 0.01 MUWAPAAV 0 .0 IN vAL4JLS It. MILLIUN U .1 &OLLIA-S. VALUS IN WILLIUMU.S. TLMS; DV develpping countries COM.TD/W/337 Page 15

Imports 19. World "gross imports" of all fats and oils increased from 19.1 million tonnes in 1975-77 (average) to 24.4 million tonnes in 1979. "Gross imports of vegetable oils include actual oil imports as well as the oil equivalent of oilseed imports. Imports according to three groups of countries and the share of these groups in world imports are indicated below for 1975-77, 1978 and 1979, together with indices of import increases (1975-77 = 100). Gross Imports of Vegetable Oils (Unit: '000 tonnes of oil equivalent)

Average Area 1975-77 1978 1979

World 19,139 (100%) 22,341 (100%) 24,411 (100%) 100 117 128

Developed market 12,803 (67%) 13,698 (61%) 14,630 (60%) economy countries 100 107 114

Centrally planned 1,505 (8%) 1,751 (8%) 2,378 (10%) economy countries 100 116 158

Developing 4,831 (25%) 6,892 (31%) 7,403 (30%) countries 100 143 153

Based on FAO data.

20. World retained imports of fats and oils grew at the rate of well over 5 per cent per annum during the seventies as compared with some 3 per cent in the sixties. Imports into developing countries increased at the rate of nearly 12.5 per cent a year in the seventies, more than double the growth rate shown during the sixties. Table 7 shows "gross imports" of main importing countries with respect to coconut oil, palm kernel oil, palm oil and groundnut oil. Coconut oil and palm kernel oil (lauric oils) are imported by developed countries for both inedible and edible uses, e.g. for the manufacture of cosmetics, toiletries, detergents, certain food uses including cocoa butter substitutes, confectionery and margarine. COM. TD/W/337 Page l6 TABLE Estimated gross and net trade of main importing countries - coconut oil, palm kernel oill; palm oil and groundnut oil - Unit: 000 metric tons Stoks ross Imports Gross Exports Net Trade estimate estimate forecast estimlte forecast estimate forecast 1979 1980 1981 1979 1980 1961 1979 1980 1961 1979 1380 1381

Oarmany,P.R. 13 16 ... 177 206 ... 12 10 164 198 COCOEUTOIL/HUTLEDECOCO/ACEITECOCO Prance 5 6 6 81 72 88 8 8 10 73 64 78 United Kingdom 64 3 61 Italy 51 51 Netherlands 7 5 8 90 6190 51 37 31 39 53 30 Helgi 23 2 21 Denmark 13 15 14 1 2 2 12 13 12

(E-9)1/ 33 35 422 466 8 11 414 455 Greece (DX-10)1/ 72 493 10 483 IrelandDcited States 67 99 1 80 1 4449 3834 4004-4 4 -4 4409 3794 3964 Japan 3 10 9 84 77 82 64 77 82 U.S.S.R. 55 55 Canada 26 22 25 - 26 22 25

Swaden 8 6 7 14 14 13 - - -14 14 13

94 2 92 Netherlands 10 8 13 66 97 102 39 30 30 47 67 72

Jar F. R. 4 6 ... 31 45 .. 4 4 27 41 Prance 1 2 1 20 19 19 - - 20 19 19

Denmark - - 10 12 14 1 1 1 9 11 13

(EFX-9)1/ 24 24 222 235 6 10 216 225 Greece 1 1 UnitedKingdom (EFC-10) 1/ 24 251 11 240

UnitedStates 11 10 10 76 79 60 - 76 79 80

Japan 1 1 1 14 15 15 - 14 15 15

Trade figures net of intra-Community trade. 2/Including Babassu oil COM. TD/W/3 37 Page 17 TABLE 7 (continued) Unit: metric Stocks1January Gross Imports GrossExports Net Trade estimate estimate forecast estimate forecast estimate forecast 1979 1980 1981 1979 1980 1981 1/ 1979 1980 1981 1979 1980 1981 1/ PALM OIL/HUILE DE PALME/ACEITE DE PALMA

Cermany F.R. 11 25 .. 175 176 ... 15 23 ... 160 153 KingdomUnited - Netherlands 13 22916 14 1170 217 220 227 84 80 90 86 137 130 Italy 72 1 71 Prance 3 6 3 69 65 70 1 1 2 68 64 68 43 9 34 Denmark 19 14 17 5 3 4 14 11 13 (EFC-9)1/ 51 76 716 683 20 24 696 659 greaceBelgira-Lux (EFC-10) 1/ 91 730 20 710 India 400 400 Pakistan 249 315 224 249 315 224 United Srates 28 37 55 142 97 150 142 97 150 Japan 18 12 20 139 148 150 - 139 148 150

Iraq 130 130 47 47 canada 18 18 20 - - - 18 18 20 Sweden 1 2 2 20 17 17 2 2 2 18 15 15 Peland ___ 6 10 10 - 6 10 10

GROUNDNUT OIL/HUILE D'ARACHIDE/ ACEITECACAHUETEDE Franec 22 20 16 260 279 246 19 13 10 261 266 236 Italy 74 5 69 Germany,F. R. 6 8 ... 61 71 ... 7 8 ... 63 United Kingdom 55 1 15 Netherlands 1 1 40 63 53 18 35 27 22 26 26 Belgius-Lux. .36 18 18 (EX-9)1/ 32 33 496 496 10 9 466 487

(EX-10)1/ 23 416 7 411 Switserland 3 5 3 30 24 24 - - - 30 24 24 HongKong 30 2 28 Japan - 27 26 25 27 28 25 Portigal 20 20 Venesuela 20 20 U.S.S.R. 13 13

Canada 6 5 5 - - 6 5

WORLDWORLDNETNETIMPORTSIMPORTS 758 758 I II. COM.TD/W/337 Page 18

21. The use of palm oil for industrial purposes such as soap manufacture has declined in the last two decades; the bulk of palm oil entering international trade is used for edible purposes e.g. for the manufacture of salad and cooking oils, margarine and shortenings. Both developed country markets (notably the EEC) and certain developing country markets (including e.g. India and Pakistan) have become increasingly important markets for palm oil. 22. The EEC absorbed more than one-half of groundnuts and groundnut oil entering international trade in 1979-80. Other significant markets for these products included Venezuela, Switzerland, Hong Kong, Japan, Portugal, the USSR and Nigeria. Castor oil, a technical oil used for industrial purposes (e.g. for the manufacture of pharmaceuticals, cosmetics, plastics and lubricants), has been imported mostly by developed countries. Sheanut oil, used generally as a food, in soap and in candles, is now increasingly used in a number of developed countries as a cocoa butter substitute. 23. Table 8 which provides certain aggregate data on imports of selected vegetable oilseeds, oils and oilcake indicates that developed market economy countries accounted for 84-94 per cent of world imports with respect to copra and products, palm kernel and products, and groundnuts and products, 66-77 per cent with respect to castor beans and products, and soya beans and products, and 49-50 per cent with respect to cotton seeds and products, and palm oil. Centrally planned economy countries accounted for 17-19 per cent of world imports with respect to soya beans and products, and castor beans and products, and 1-6 per cent with respect to the other product groups. 24. Developing countries were important importers of palm oil, and cotton seed and its products, accounting for 45 per cent of world imports. Developing countries also accounted for 17 per cent of world imports of soya beans and products, 11 per cent of copra and coconut products, and groundnuts and products, and 4-5 per cent with respect to palm kernels and related products, and castor beans and their products. The share of imports in the form of oils was generally higher for developing countries than for developed countries because a number of developing countries depended largely on imports for the supply of edible oils but their import requirements of animal feeding stuffs were relatively limited compared with those of developed countries. (It might be noted that in many developing countries, commercial policy including tariff levels is often determined by public revenue requirements and also the balance-of-payments situation obtaining.) SECTION III: Per capita consumption of fats and oils 25. Table 9 shows per capita consumption of all fats and oils (for food and non-food use) in a number of countries. In developed countries per capita consumption in 1979 ranged between 19 kg. and 41 kg. per annum. Per capita consumption in developing countries varies widely reflecting such factors as levels of per capita income, domestic production, consumer tastes, balance-of- payments situation. COM. TD/W/337 Page 19

Table 8 Imports of different oilseeds. oils and cakesfrom the worldandfromdifferentgrdupe of countried in 1979 A - world imports;B -imports of develop market economy countries; C - importes ofcentrallycentrallyplannedplannedeconomyeconomycountries;countries; D - imports of developing countries (not including those covered by C) (Unit : $ million) Seeds Oils Cakes Total SeedsCakes Total

Copra, coconut oil and cake Castor beans and oil A. 289.9 1,147.6 186.3 1,623.8 37.7 178.0 215.7 18% 71% 11% 100% 100% 17% 83% 100% 100% B. 237.8 935.0 184.8 1,357.6 33.5 133.3 166.8 18% 69% 14% 100% 84% 20% 80% 100% 77% C. 6.9 77.1 84.0 0.4 40.7 41.1 8 % 92% 100% 5% 1% 99% 100% 45.2 135.6 1.4 182.2 3.8 4.0 7.8 25% 74% 1% 100% 11% 49% 51% 100% 4%

Palmkernel, palm kernel oil and cake Soya beano. oil and cake A. 74.4 318.8 77.3 470.5 7,509.7 2,137.3 3,859.2 13,506.2 16% 68% 16% 100% 100% 56% 16% 28% 100% 100%

B. 68.7 296.5 75.3 440.5 5.847.7 456.5 2,602.0 8,906.2 16% 67% 17% 100% 94% 66% 5% 29% 100% 66% - C. 4.6 2.7 7.3 1,137.1 216.1 903.5 2,257.0 63% 37% 100% 1% 50% 10% 40% 100% 17% 1.1 19.6 2.0 22.7t 5 24.6 1,1464.7 353.7 2.343.0 5% 86% 9% 100% 5% 22% 63% 15% 100% 17%

Groundnuts, groundnut oil and cake Cotton seeds. oil and cake

A. 638.0 512.6 288.3 1,438.9 1,438.9 23.3 273.7 195.2 492.2 44% 36% 20% 100% 100% 5% 56% 39% 100% 100%

B. 532.8 439.0 2410.5 1,212.31,212.3 17.0 18.11 176.9 242.3 36% 20% 100% 7% 20% 73% 100% 50% C. 37.1 0.7 35.6 73.4 13.5 12.0 25.5 51% 1% 49% 100% 5% 53% 47% 100% 5% D. 68.0 72.9 12.3 153.2 6.3 211.7 6.3 224.3 48% 8% 100% 11% 3% 94% 3% 100% Palm oil A. 1,604.9 100% B. 780.14 780.14 49%

C. 100.0 100.0 6% D. 720.5 45% COM. TD/W/337 Page 20

Table 9 Per capita consumption of all fats and oils (food and non-food use)1/ (Kilogram per annum) Increase/ 1972-741972-74 1975-77 1978 1979 betweendecrease average average1972-74 and 1979 World 12.3 12.6 13.4 13.8 +12% Canada 32.7 28.3 29.3 21.5 -35% EEC (9) 34.7 34.3 37.8 37.7 +9% Greece 32.0 37.2 38.2 38.1 +19% Japan 17.9 17.0 18.5 19.2 +7% Norway 38.5 36.2 35.1 37.8 -2% Sweden 32.1 28.6 37.0 31.8 -1% Switzerland 26.7 25.3 25.8 26.1 -2% USA 33.8 34.0 33.5 36.2 +7% Portugal 23.5 23.0 24.8 25.9 +10% Spain 23.8 27.6 24.3 27.0 +13% Yugoslavia 19.0 22.2 26.1 22.9 +21% Bulgaria 23.0 22.3 25.3 24.5 +7% Czechoslovakia 24.4 25.8 27.8 27.5 +13% German D.R. 39.6 40.6 42.1 40.8 +3% Hungary 22.7 22.7 21.6 23.3 +3% Poland 22.6 23.9 24.9 22.6 +0% Romania 16.2 18.1 19.8 21.1 +30% USSR 20.9 21.5 22.8 23.2 +11% Algeria 10.7 16.1 17.7 17.2 +61% Bangladesh 2.4 2.2 2.5 2.0 -17% Egypt 11.7 15.0 15.9 15.6 +33% Ghana 10.1 8.9 8.1 7.3 -28% India 5.4 5.8 7.0 6.9 +28% Iran 10.3 12.8 13.2 +28% Iraq 9.8 9.5 12.9 13.7 +40% Kenya 3.8 4.0 5.4 4.6 +21% Mexico 11.9 10.8 16.0 12.6 +6% Morocco 10.0 11.9 11.8 14.7 +47% Nigeria 11.9 12.4 12.5 13.9 +17% Pakistan 9.9 10.6 10.9 12.0 +21% Peru 11.7 13.9 16.6 10.4 -11% Saudi Arabia 6.4 7.4 13.2 11.6 +81% Venezuela 12.1 19.2 23.4 17.9 +48%

1/Apparent consumption not taking into account stock changes.

Note: Groundnuts are used not only for oil extraction but also for direct humanconsumption. Not given separate data on different uses of groundnuts, data in the table assumes that all groundnuts were used for oil extraction. (Source: FAO) COM.TD/W/337 Page 21

SECTION IV: Commercial policy situation1 26. Table 10 shows the post-Tokyo Round tariff situation in eleven developed country markets and provides information on non-tariff measures with respect to the following oilseeds and oils (crude, refined and in small containers): copra and coconut oil, palm kernels and palm kernel oil, castor beans and castor oil, palm oil, groundnuts and groundnut oil, and miscellaneous tropical oilseeds and oils. More detailed information is contained in Annex 3, which provides data on both pre- and post-Tokyo Round tariff rates in nine of these markets at the tariff line level together with corresponding trade flow data for 1976 or 1977 with respect to oilseeds, crude and refined oils, certain processed oils, oilcakes and meals. Tariff reductions made in the Tokyo Round 27. Document COM.TD/W/310 circulated in June 1980 shows the results obtained in the Tokyo Round with respect to different groups of products in respect of which developing countries submitted requests for concessions in the tropical products negotiations. Imports of oilseeds into nine industrial country markets2 from GSP beneficiary countries and territories amounted to $1,199 million in 1977, of which $1,138 million were imports of duty-free items and $61 million were imports of items dutiable before the Tokyo Round. Some $17 million of the dutiable imports were subject to m.f.n. concessions and/or GSP contributions (inclusion of new items in the GSP, GSP rate reduction, etc.) in the Tokyo Round. As a result, the average3m.f.n. rate of the industrial country markets applied to oilseeds decreased from 0.3 per cent ad valorem to 0.2 per cent ad valorem. 28. Imports of vegetable oils into the nine industrial country markets from GSP beneficiaries amounted to $1,624 million in 1977, of which $113 million consisted of imports of duty-free items and $1,511 million imports of items dutiable before the Tokyo Round. Some $981 million or 65 per cent of the dutiable imports were subject to m.f.n. concessions and/or GSP contributions in the Tokyo Round. As a result, the average m.f.n. rate applied in industrial country markets on vegetable oils decreased by 16 per cent from 6.8 per cent ad valorem to 5.7 per cent ad valorem. With respect to vegetable oils covered by the GSP before or after the Tokyo Round, COM.TD/W/310 shows also that the average GSP rate of the industrial country markets was reduced by 8 per cent from 5.2 per cent ad valorem to 4.8 per cent ad valorem.

1This section deals basically with tariffs and certain non-tariff measures. A number of other measures affecting production, consumption and exports (e.g. export aids and taxes), details of which may be found in relevant GATT and FAO documentation, are summarized in the Attachment as extracts from a recent FAO note dealing with the commodity group under consideration in this paper. 2Imports into Austria, Canada, EEC, Japan, Finland, Norway, Sweden, Switzerland and the United States, but not including those of tariff items subject to variable levies in the country or countries concerned. 3Average based on imports from GSP beneficiaries in 1977. TABLE 10 Post-Tokyo Round Commercialpolicy situation - 1] developed country marketa

T = for technical or industrial uses, E = edible, QR = quantitative restrictions, IL = import levy and charge. ( ) -ad valorem incidence of specific duties in 1976 or 1977 Australia Austria Canada EEC Japan New Zealand Finland Norway Switzerland United Satates

1. Coara and coconut oil; palm muts and kernels and palm kernel oil

Copra ) Palm nuts and) 0%B 0%B 0%B 0%B Qa 19% QR 0% -JL Swf 0.001/kg kernels ) (o.1%) IL Coconut oil Pula kernel oil) Crude 10% T. 5%4/ Coconut oil Coconut oil QR T. 10% ) QR HKr 0.16/kg IL T. SwF 0.01/kgkgB Coconut oil 0%B Unfit for GSP-0% GSP-2.5%3/ or 10/kg.B 22.5%B E. 16% ) (Coconut oil GSP-0% Palm kernel oil immediate 1980/81 9.8% 7.9%; palm E. Sw FO.10/kgkg T.0%, bound consumption E. 10%4/ or 10/kg kernel oil - (7.9%) ILIL at 3c/lb. GSP-7%3/ Palm kernel oil 0%B 7.8%) E. 0%B ACP, LIDC-0% oil 8%B Refined 0% 17.5% T. 8% As above As above As above As above T. 8% T. SwF 0.01/kgkg As above 12/82/ GSP-12.5% GSP-6.5% 3/ GSP-0%8/ GSP-0% ACP, LlDC-0% E. 15% E. SwF 0.30/kgkg E. 15% GSP-0%8/11 (12.9%) IL GSP-13% ACP, LIDC-0%

In Email T 0%B OB 20 countainers E. 15.6%B GSP-I8%3/ In containers ACP, LIDC-0% of 5kg or less

2. Castor beanand castor oil 0% 0%B 19% 0%B SwF 0.001/kg Castor beans 0%B QR 0%B 0% GSP-0% (0.1%) IL

Cascor oil 0% * 2%1/ Crude 0% 8%B5/ 9%B 0%B 0%B 0%B 0%B IL SwF 0.01/kg 20c /1t. cr less GSP-6%3/ 1980/81-9.8% GSP-0% Refined 17.5% ACP/LLDC-0% GSP-5% Over 20c/lb. l.5c/1b.(1.8-4.8%) 0% B

3. Palm oil IL Crude 0% + 2%1/ 10% T. 4%B 7%B T. 10%) 0% T. SwF 0.01/kgBkgB 0%, bound at GSP-0% Unfit for GSP-2.5%3/ 1980/81-7.8% E. 16% ) QR GSP-0% 0.5c/lb. immediate ACP/LLDC-0% GSP-4% E. SwF 0.10/kgkg consumption E. 6%B LLDC-0% IL GSP-4%3/ (6.4%) IL ACP/LIDC-0%

Refined As above 117% T. 8% As above 0%B As above As above T. 8% 8/ T. SwF 0.01/kgB kgB As above GSP-12.5% E. 14%B GSP-OX GSP-0% GSP-12%3/ E. 15% E. kg ACP/LIDC-0% SwF0.12/kg IL In small countainers 15.6% B In containers ACP/LIDC-0% of 5kg or less In containers of 1 kg. or less Table 10 (continued)

Australia Austria Canada EEC Japan New Zealand Finland Norway Sweden 1/ Switzerland Unit ed States

4. Groundnuts and groundnut oil Groundnuts A$0.111/kg 0%B 0%B For oil 10% QR 0%B 0% IL Sw 0.001/kg Not shelled QR PNG - 0% extraction 0%B QR(in retail (0.1%) IL 4.25c/1b.(36.1%) CAN - A$0.07/ Other 20% or packe) Shelled, etc. QR kg. l4/kg. higher 7c/lb. (10.48) QR Groundnut oil; Crude 10% 0%B 7.5%B T. 5%B 20/kg (5.5%) 0%B T. 10% ) NKr 0.16/kg IL T. SwF 0.01/kgB 4c/1b. Unfit for 1981-10% ACP-0% Provisional E. 16% ) (4%) GSP-0% (5.9%) immediate GSP-0% E. 10%B rate 17/kg E. SwF 0.10/kg consumption ACP-0% (6.48%) IL Refined As above 15%B T. 8% Acid value O%B As above As above T. 8% T. SwF 0.0l/kgB As above 12%B2/ 1981-17.5% ACP-0% 0.6 or less GSP-0%8/ GSP-0% GSP-12.5% E. 15%B 28/kg(6.6%) E. 15% E. SwF 0.12/kg ACP-0% Provisional (6.3%) IL * Implement- rate ation to 23/kg commence on 1.1.83 In Seall 20% containers 15.6% B GSP-18% 3/ 0%B QR2/ In containers ACP,LLDC-0% of 5 kg. or In containers less of 1 kg. or 5. Hiscellaneous oilseeds and oils less kapok Illigenut, 0% 2%1/ 0% 0%B 0%B 0%B 0% SwF 0.001/kg 10%(not for IL Babassu nuts, bound for human IL (0.1%) siger seeds, GSP-0% Babassu Shea nuts (karit&) consumption) Cashew nut shell Oils of the above; Crude Bsbassu oil 0%B 10% T. 5%6/ 0%B T. 10% ) cashew nut 0% IL T. SwF 0.01/kgB Babassu oil and 0% Unfit for GSP-2.5% E. 16% ) QR shell oil GSP-0% nut oils 0% Other immediate ACPLLDC-0% E. SwF 0.10/kg Other 5% 10% consumption E. 10% Others GSP - 0% SPARTECA 0% ACP-0% NKr 0.16/kg PNG - 0% (3.8%0

Refined As above 17.5% T. Acid value 0%B As above As above T. 8% T. SwF 0.01/kg As above 15%2/ ACP-0% 0.6 or less GSP-0% E. 15%B 20.7kg.B(3.3%) E. 15% E. SwF 0.30/kg ACP-0% 1980/81- (babassu 22.43/kg IL oil) SwF 0.12/kg (other oils) In small 20% 5% GSP-0% COM containers 19.5% GSP-18% AUS, CAN.-0% In containers ACP ,LLDC-0% a In containers In containers of of 5 kg. or let of 1kglessor lvas than 4 lites 1/Temporary revenue duty. 7/import are subject to quantitative restrictions if in containers of capacity 2/0%Bfor margurine factories for the manufacture of margarine under certificate of authorized use. less than 4 litres. 3/Turkey is subject to duty rates equivalent to GSP rates. 8/These GSP rates are not applicable to Bulgaria, China and Romania. 4/Found for coconut oil. 9/Bound rates (up-bindings) are as followa: copra 1.87 cents per lb., palm nuts 5/For the production of aminoundecanoic acid for use in the manufacture of synthetic textile 0.35 cents per lb.. palm kernels 1.35 cents per lb. fibres or of artificial plastic materials: 10/ GSP rats on castor oil having lovibond colour values not greater than 6 yellow 6/founc for babassu oil. and 0.6 red did not apply to Brazil in 1976-78 and 1980-83 under the competitive COM.TD/W/337 Page 24

29. New Zealand, not covered by the above analysis, eliminated its duties of 12.5 per cent and 17.5 per cent on most vegetable oils imported in small containers (less than 4 litres) and introduced GSP rates of 15 per cent and 10 per cent on oilcakes and coconut oil respectively. Post-Tokyo Round tariff situation1

(i) Copra, palm kernels, castor beans, groundnuts and miscellaneous oilseeds 30. Developed countries generally grant duty-free treatment to those oilseeds listed in Table 10 imported from developing countries mostly on an m.f.n. basis and in a few cases under the GSP. Exceptions are as follows: Australia applies a temporary revenue duty of 2 per cent on imports of certain oilseeds and maintains an m.f.n. rate of A$0.111/kg. on groundnuts. Japan maintains an m.f.n. duty of 20 per cent or Y 14/kg. whichever is the higher, on groundnuts for direct consumption; groundnuts for oil extraction are granted duty-free treatment on an m.f.n. basis. Finland maintains an m.f.n. rate of 10 per cent on groundnuts and an m.f.n. rate of 19 per cent on other oilseeds discussed in this paper. Duty-free treatment under the GSP is granted for castor beans. Switzerland maintains an m.f.n. duty of SwF0.001/kg. (0.1 per cent)2 on oilseeds. The United States applies m.f.n. duties of 4.25c/lb. (36.1 per cent)2 and 7c/lb. (10.4 per cent) on unshelled and shelled groundnuts, respectively. (ii) Coconut oil, palm kernel oil, palm oil, castor oil, groundnut oil, and miscellaneous oils 31. While oilseeds are largely permitted entry duty-free, vegetable oils exracted from oilseeds are often dutiable, although duty-free or reduced duty treatment has been extended to certain oils in some markets either on an m.f.n. basis or under the GSP. Australia grants duty-free treatment on an m.f.n. basis or under the GSP for the vegetable oils listed in Table 10, except for groundnut oil and certain miscellaneous oils which are subject to an m.f.n. duty of 10 per cent. Austria imports castor oil and other oils unfit for immediate consumption free of duty, but maintains an m.f.n. duty of 12-15 per cent on refined oils and an m.f.n. duty of 15.6-19.5 per cent on oils in containers of 5 kg. or less. Under its GSP scheme Canada grants duty- free treatment to imports of crude vegetable oils from developing countries (m.f.n. rates: 7.5 to 10 per cent), except crude miscellaneous oils which are subject to an m.f.n. duty of 10 per cent. GSP rates of 5 per cent (castor oil) and 12.5 per cent (other oils) apply to imports of refined oils from developing countries (m.f.n. rates 15 to 17.5 per cent), except for miscellaneous oils which are subject to an m.f.n. duty of 17.5 per cent. 32. Table 10 provides a summary of the tariffs applied by the EEC with respect to crude oils, refined oils and oils in containers of 1 kg. or less as well as oils for technical or industrial use and edible oils. Coconut oil, palm kernel oil, castor oil and palm oil are covered by the GSP scheme of the EEC, groundnut oil and miscellaneous oils are partly covered by the scheme. GSP rates range between 2.5 to 18 per cent and m.f.n. rates between 4 and 20

1Tariff situation refers to Tokyo Round final m.f.n. rates. 2Ad valorem incidences based on imports in 1977. COM.TD/W/337 Page 25 per cent. Imports of vegetable oils from ACP countries and imports covered by the EEC's GSP scheme from least-developed countries are granted duty free entry. 33. With respect to coconut oil, palm kernel oil and castor oil, Japan's post-Tokyo Round m.f.n. duties are at a level of 8-9 per cent. Palm oil imports into Japan from developing countries and least-developed countries are subject to GSP rates of 4 per cent and zero per cent respectively (m.f.n. rate: 7 per cent). The incidences of specific duties on groundnut oil and miscellaneous oils range between 3 to 7 per cent. 34. New Zealand grants m.f.n. or GSP duty-free treatment to imports of vegetable oils under consideration except for coconut oil which is subject to an m.f.n. duty of 22.5 per cent and a GSP rate of 10 per cent. Imports of coconut oil from SPARTECA member countries1 are granted duty free treatment. 35. Finland grants duty-free treatment to castor oil imports. Oils for technical or industrial use and edible oils attract m.f.n. duties of 10 per cent and 16 per cent respectively. Norway grants duty-free treatment to imports of castor, palm and cashew nut shell oils, and maintains an m.f.n. rate of Nkr. 0.16/kg. (3.8 to 7.9 per cent)2 on other oils under consideration. Sweden grants duty-free treatment to imports of all oils under consideration from developing countries either on an m.f.n. basis or under the GSP. Switzerland grants duty-free treatment under the GSP to imports of vegetable oils for technical or industrial use from developing countries (m.f.n. rate: SwF 0.01/kg.) and maintains an m.f.n. duty of SwF0.10/kg. (6.4 to 7.9 per cent)2 on crude edi le oils and m.f.n. duties of SwF 0.12 or 0.30 per kg. (6.3 to 12.5 per cent) on refined edible oils. 36. The United States imports coconut oil, palm kernel oil, palm oil, babassu oil and nut oil free of duty on an m.f.n. basis, and grants duty-free treatment under the GSP to imports of castor oil and miscellaneous oils from developing countries. It may be noted that GSP zero rate on "castor oil valued at over 20 cents per lb. and having lovibond colour values not greater than 6 yellow and 0.6 red" did not apply to Brazil in 1976-78 and 1980 and is not applied in 1981 under the competitive need provisions of the United States GSP scheme. 37. Reference may be made to Annex 3 for the post-Tokyo Round tariff situation with respect to such processed vegetable oils as modified oils and hydrogenated or solidified oils. (iii) Oilcake and meal 38. With respect to oilcake and meal resulting from the extraction of the aforementioned vegetable oils, Australia, Austria, Canada, EEC, Japan, Norway and Sweden grant duty-free treatment on an m.f.n. basis, and Switzerland

1Member countries of the South Pacific Regional Trade and Economic Cooperation Agreement (document L/5100). 2Ad valorem incidences based on imports in 1977. COM.TD/W/337 Page 26 grants duty-free treatment under the GSP to imports from developing countries (m.f.n. rate: SwF 0.002/kg.). Imports of these oilcakes and meals from developing countries are dutiable in New Zealand (m.f.n. rate: 25 per cent; GSP rate: 15 per cent), Finland (m.f.n. rate: 10 per cent), and the United States (m.f.n. rate: 0.3 cent/lb. - 2.9 per cent1). Non-tariff measures (i) Quantitative restrictions and State-trading 39. As a contribution to the Tokyo Round, the EEC removed its remaining quantitative restrictions on fatty acids and alcohols falling within tariff numbers 1510 C and D as of 1 January 1977. 40. Finland and New Zealand maintain quantitative restrictions on a number of products covered by this note. Finland's restrictions apply to imports of groundnuts, copra, palm nuts and kernels, castor seeds, and miscellaneous oilseeds not destined for human consumption, coconut oil, palm kernel oil, palm oil, groundnut oil, miscellaneous vegetable oils, vegetable oils falling within CCCN heading 1512, and oilcake and meal. New Zealand's restrictions apply to imports of copra, palm nuts and kernels, groundnuts in retail packs, a number of vegetable oils including palm oil, groundnut oil and miscellaneous oils imported in containers of a capacity less than 4 litres, and coconut oil in any containers. 41. Japan restricts imports of groundnuts for direct consumption; there is no restriction on imports of groundnuts for oil extraction. In order to prevent material interference with US programmes and operations relating to groundnuts, the United States restricts imports of groundnuts. Reference may be made to document L/5084 for the most recent annual report of the U.S. Government on measures taken in accordance with the Agricultural Adjustment Act under the Decision of the CONTRACTING PARTIES of March 1955. Switzerland restricts imports of oilcake and meal. Imports of oilcake and meal into Norway is subject to State-trading. (ii) Import charges and taxes 42. In certain circumstances (e.g. if situations arise which prejudice Community production or if third countries grant subsidies to export), the EEC may impose compensatory amounts on imports of certain vegetable oils in addition to customs duties.

1Ad valorem incidences based on imports in 1977. 2The United States generally restricts imports of groundnuts to 775 tons (shelled basis) per year. However, the import quota was raised to 91,700 tons for the 1980/81 marketing year following a sharp fall in the domestic harvest in 1980. COM .TD/W/337 Page 27

43. Sweden applies an import levy (SKr 35 - $5.31 per 100 kg. as of May 1981) on oilseeds and oilcakes used for animal feeding purposes. Imports of vegetable oils are subject to a "compensatory fee" (Skr 279 - $42.11 per 100 kg. as of May 1981) with the exception of tobacco seed oil originating in developing countries, olive oil for technical uses, linseed oil, bay-berry oil and tenkawang oil. "Compensatory fees" are charges on imports of products which are subject to special charges when produced domestically (e.g. fat regulation fees). 44. Switzerland levies price supplements on imports of oilseeds, vegetable oils and oilcakes with a view to maintaining a certain balance between the market shares of vegetable and animal fatty substances. Switzerland has recently notified that the price supplements charged on imports of edible oils and fats have been increased as from 1 January 1981 (cf. COM.TD/SCPM/W/6). It has been stated that "this most recent adjustment, the preceding one having taken place on 26 August 1977, was found necessary because of the increase in the butter price in Switzerland on the same date; it takes account of the trend in world prices of the principal edible oils and fats." The current rates of price supplements range between Fr19.05 - Fr.92.30 ($9.9 to 48.0)1 per 100 kg. on oilseeds, Fr. 124.70 to 156.15 ($64.9 to 81.2) per 100 kg. on vegetable oils and Fr. 23 to 27 ($12.0 to 14.0) per 100 kg.on oilcakes for animal feeding purposes. Oilseeds and vegetable oils for animal feeding purposes are subject to lower rates than those indicated above. 45. With regard to tariffs on the oilseeds and oilcakes/meals covered by this paper, the objective of duty-free entry sought by developing countries has been largely or completely attained in a number of developed country markets as a result of past trade negotiations in the framework of GATT including the Tokyo Round. However, as indicated earlier a few developed countries continue to maintain tariffs and/or non-tariff measures such as quantitative restrictions and import charges in these areas. 46. While some progress has been made in the Tokyo Round towards the elimination or reduction of tariffs and non-tariff measures on the tropical vegetable oils covered by this paper, such measures continue to exist in a number of developed country markets. It may also be noted that tariffs sometimes increase progressively with the degree of processing, for example, from oilseeds to oils, and in a number of cases, from oilseeds to crude oils, from crude oils to refined oils, and from refined oils to oils in small containers. In some markets, oils for technical and industrial uses attract lower duties than duties on edible oils. Some developed countries continue to maintain nor-tariff measures such as quantitative restrictions and import charges on certain vegetable oils.

1On the basis of the average exchange rate in March 1981. COM.TD/W/337 Page 28

ATTACHMENT

I. Certain Measures Affecting Production, Consumption and Exports Production and consumption 1. Several countries take measures which reduce import requirements and increase export availabilities by offering domestic producers a price significantly above normal world levels, or by subsidizing consumption of domestically produced materials. 2. In developed countries, the most extensive price support policies in the oilseeds, oils and fats sector are those covering butter. These policies are part of wider policies covering all dairy products and, to some extent, are linked to meat policies. 3. The EEC also supports olive oil production with the help of producer support prices which are well above world prices. However, consumers do not pay the full price obtained by EEC producers as deficiency payments and consumption subsidies reduce consumer prices; these, however, remain above the equivalent world prices. 4. The EEC also supports prices of domestically produced oilseeds, and subsidizes their disposal. Protection has been granted to rapeseed and sunflowerseed since 1967/68, and has been extended to cover soybeans, linseed and castorbeans in the second half of the 1970's. While EEC production of this second group of oilseeds remains small, production of rapeseed and sunflowerseed has increased substantially, reaching the equivalent of some 400,000 tons of oil in the most recent years, and the cost of the support policy exceeded US$400 million in 1980. Prices obtained by producers of these oilseeds are substantially above world market prices and, to move the Community-produced oilseeds into processing and consumption channels, a deficiency payment approximately equal to the difference between the EEC and world prices is made to the producer, without limitation on area or output. The size of further increases in output will depend, in part, both on the absolute level of prices paid for these oilseeds and also on the prices of competing crops, e.g. grains and sugar-beet, in the EEC. 5. The United States' groundnut policy reserves the domestic market for domestic producers and also provides support to their incomes. The policy was revised in 1977 to include a two-price support system which maintains a high price for quantities needed for the direct food market and brings the price of groundnuts destined for crushing into closer alignment with actual market conditions. This revision has not eliminated subsidization of the sector, but has reduced it substantially. The cost to the Federal budgt of the groundnut policy fell from the 1976/77 record of US$103 million to US$30 million in 1978/79. The area sown to groundnuts has remained unchanged for over two decades as the area allotment has been maintained at the minimum level allowed by current legislation; but output has trended upwards. 6. Among other major importing countries, Japan, Spain, Sweden and Switzerland operate price support programmes for oilseeds (and also for olive COM .TD/W/337 Page 29 oil in Spain) at levels above world market prices. In the case of Japan, despite the high support prices for soybeans and rapeseed, output of these oilseeds remains relatively small. Since 1977, however, soybean output has increased somewhat reflecting increased goverment efforts to obtain a shift from rice to soybean growing. In Spain, the policy has been particularly successful in the case of sunflowerseed production, which has grown at the average rate of 16 per cent a year in the 1970's. In Sweden and Switzerland, rapeseed output has grown during the 1970's at the average rates of 2 and 3 per cent a year respectively. 7. In many countries, the output levels of certain by-products fats and oils are indirectly affected by price-support programmes for the relevant main products. Thus, output of cottonseed oil, tallow and lard is affected by price support operations for cotton, beef, veal and pigmeat. Exports 8. International trade in oilseed, oils and oilmeals is also affected by a number of measures taken by exporting countries on their exports. The main developed countries giving export aids are the United States and the EEC. In the United States the government, through the Commodity Credit Corporation (CCC), involves itself with the export trade insofar as it provides financial assistance to facilitate export trading. This is done with respect to commercial exports and also to those made under concessional terms and is carried out within the context of international obligations. Commodities which have traditionally enjoyed financial assistance by the government include groundnuts and groundnut oil, as well as soybeans and a number of oils, fats and oilmeals. 9. Substantial quantities of groundnuts and groundnut oil have been disposed of by the United States at subsidized prices, although the need for subsidization has been reduced since 1978 following changes in the groundnut production policy. 10. An element of export aid is contained in the concessional trade programmes (PL 480 and AID) operated by the United States. During the three fiscal years 1976/77 to 1978/79, the value of the soybeans, oils, fats and oilmeals exported under these programmes averaged about US$300 million annually, or some 4 per cent of the total value of US annual exports of the same commodities. 11. The EEC export aid programmes concern butter, lard, rapeseed, sunflowerseed and olive oil. Regarding oilseeds and vegetable oils, export aids have been paid in recent years on only relatively small quantitites of exports of rapeseed and olive oil. 12. Sweden also operates export aid programmes - financed by internal fees and import levies - which concern butter and rapeseed. Budgetary outlays to finance these programmes increased between 1976/77 and 1978/79 from 112 million to 182 million kroners, (from about US$25 million in 1976/77 to over US$40 million in 1978/79). Austria and Finland also grant aids on butter exports. COM.TD/W/337 Page 30

13. In developing countries, the imposition of export taxes on oilseeds, oils and oilmeals is an important feature. To the extent that export taxes reduce the returns from export sales - at least a part of which could be expected to be passed on to the producer - they could act as disincentives to production, and thus tend to reduce exportable supplies. Developing countries traditionally taxing exports of oilseeds, oils or oilmeals include several of the main exporters, e.g. Argentina, Brazil, Indonesia, Malaysia and the Philippines. In many cases, these taxes are lower as the degree of processing increases. Thus, they tend to encourage domestic processing so as to obtain increased value added by exporting oils and oilmeals rather than oilseeds, or processed rather than crude oil. 14. As in the case of imports, some developing exporting countries impose various types of restrictions or controls on exports, e.g., export quotas, discretionary licensing, etc. The aim is to ensure adequate and regular supplies for domestic consumption. (Source: FAO document CCP:OF 81/2 dated January 1981.)

II. Health and sanitary regulations and standards GATT Agreement on Technical Barriers to Trade 15. To the extent that standards are relevant to the products under discussion in this paper, note might be taken of the Agreement on Technical Barriers to Trade (also known as the Standards Code) which aims to ensure that when governments or other bodies adopt technical regulations or standards, for reasons of safety, health, consumer or environmental protection, or other purposes, these regulations or standards, and the testing and certification schemes related to them, should not create unnecessary obstacles to trade. It provides for notification and consultation on these measures as well as procedures for the settlement of any disputes that may arise between members. Provisions for granting special and more favourable treatment to developing countries are also contained in the Agreement as indicated below. "12.6 Parties shall take such reasonable measures as may be available to them to ensure that international standardizing bodies, upon request of developing countries, examine the possibility of, and if practicable, prepare international standards concerning products of special interest to developing countries." With regard to technical assistance to producing countries on quality standards, Article 11 of the Code provides for "technical assistance to other Parties". Notably, paragraph 2 of the Article reads as follows: "11.2 Parties shall, if requested, advise other Parties, especially the developing countries, and shall grant them technical assistance on mutually agreed terms and conditions regarding the establishment of national standardizing bodies and participation in the international standardizing bodies and shall encourage their national standardizing bodies to do likewise." COM.TD/W/337 Page 31

International Standards 16. International standards on oleagenous seeds, vegetable oils and animal feeding stuffs have been established or are under preparation by the International Organization for Standardization (ISO) and FAO/WHO Codex Alimentarius Commission.1 A draft international standard on the determination of aflatoxin B1 content in animal feeding stuffs is being considered in the context of the work of the International Organization for Standardization. Aflatoxin 17. Aflatoxin control by consuming countries of animal feeding stuffs has been a matter of concern to countries exporting certain oilseeds and oileakes/meals, in particular groundnuts and groundnut oilcake, because of its effects on the flow of trade in such products. While most developed countries impose limits on the level of aflatoxin permitted in animal feeding stuffs, the scope, precision and severity of the control appears to differ between countries or markets. A number of countries, for example, limit the proportion of groundnut cake/meal that can be incorporated into certain animal feeds regardless of whether aflatoxin has been detected. The matter has been discussed in GATT in the context of the work of the Sub-Committee on Protective Measures (documents COM.TD/SCPM/W/7 and COM.TD/SCPM/3 paras. 20- 22). It might be noted also that the research and development programme for groundnuts and groundnut products approved at the Fourth Preparatory Meeting on Vegetable Oils and Oilseeds held in March 1981 (see paras. 19-20 below) included project proposals for the prevention of aflatoxin contamination and for the removal of aflatoxin contamination (cf. TD/B/IPC/OILS/15). III. Developments in some other international organizations FAO 18. The FAO Intergovernmental Group on Oilseeds, Oils and Fats, at its meeting in April 1980, adopted "Guidelines for International Co-operation in the Oilseeds, Oils and Oilmeals Sector" and undertook a preliminary review of the Tokyo Round results with respect to vegetable oils and oilseeds and discussed the promotion of trade in vegetable oils between developing countries. At its meeting on 9-13 March 1981, the Group discussed, inter alia, protectionism and the possibility of the EEC imposing a tax on imported and domestic vegetable oils, and reviewed preferential schemes including the GSP applying to the oilseeds, oils and oilmeals sector.

1Details provided by the ISO are available in the secretariat for inspection by interested delegations. COM .TD/W/337 Page 32

Extracts from FAD Guidelines for International Cooperation in the oilseeds, oils and oilmeals sector A. Scope and purpose The main purpose of the guidelines is to help harmonize national policies in the light of agreed objectives for the world oilseeds, oils and oilmeals economy. It is understood that acceptance of the guidelines would reflect the intention on the part of member countries to take them into account when considering the formulation of policies at national and international levels. It is also understood that acceptance of the guidelines would not subordinate national policies to a global blueprint. The role of the guidelines is rather to serve as an overall framework within which each country would develop its own policies affecting oilseeds and oils according to its circumstances on a voluntary basis. Assessments would be undertaken of the progress made towards achieving the agreed objectives and policies covered in the Guidelines. D. Trade policies1 (i) Governments should, to the maximum extent possible, avoid the imposition of any new tariff and non-tariff barriers to trade in the products of the oilseeds, oils and oilmeals sector. (ii) Governments should move towards the progressive reduction and/or elimination of tariff and non-tariff barriers to trade in products of the sector. (iii) Measures to improve access to markets should give priority to the progressive reduction and/or elimination of those tariff and non-tariff barriers which restrict the development of processing industries in developing countries. (iv) Governments concerned should, whenever feasible, extend and improve the benefits of the GSP schemes by such means as increasing the number of products covered in the oilseeds, oils and oilmeals sector, improving the degree of preference given and limiting the circumstances under which preferences may be suspended. (x) In order to safeguard the interests of exporting and importing countries, all governments, whenever practicable, should undertake consultations in the appropriate manner and fora, particularly within the GATT, when either side takes action which would cause harmful interference with the normal patters of international trade or which could adversely affect the development efforts of developing exporting countries.

1The above extracts are concerned with the main commercial policy aspects only. COM.TD/W/337 Page 33

Preparatory Meetings on Vegetable Oils and Oilseeds 19. The Fourth Preparatory Meeting on Vegetable Oils and Oilseeds, within the framework of the Integrated Programme for Commodities under UNCTAD auspices was held in Geneva on 2-6 March 1981. A revised UNCTAD/FAO draft of international programmes of research and development for groundnuts and their products and coconuts and their products was before the meeting. It included: - for groundnuts and their products, 19 project proposals covering pre- harvest and post-harvest activities, as well as documentation and information, with an estimated total cost over 5 years of US$38.6 million. - and for coconuts and their products, 21 project proposals covering also both pre-harvest and post-harvest activities, as well as documentation and information, with an estimated total cost over 5 years of US$28.5 million. 20. The Meeting approved the two programmes and agreed that the FAO Intergovernmental Group on Oilseeds, Oils and Fats would be an appropriate body for sponsoring them if it proved possible to have the Group designated by the Common Fund as an eligible international commodity body. The Meeting considered that the execution and location of projects would be more appropriately decided upon when the projects had been accepted for financing - by the international commodity body, the financing agency and the competent national, regional or international agencies responsible for the commodity in question. International Trade Centre UNCTAD/GATT 21. The International Trade Centre in collaboration with UNCTAD, FAO and GATT undertook a survey, which was completed in November 1980, to determine the scope for increased trade in vegetable oilseed products among developing countries. The survey covered 15 major importing and 7 major exporting developing countries. Its main findings were the subject of an International Symposium on Trade Expansion in Vegetable Oilseed Products among Developing Countries held in New Delhi in December 1980. The Symposium gave special attention to market-related technical problems, i.e. commercial information and market intelligence, factors affecting product selection, trade and processing infrastructure, distribution and marketing patterns and promotional and marketing measures. The Symposium also discussed in some detail commercial policy measures, the role of state trading organizations and long- term agreements.