By Alexander Yeats
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Extra resources for Trade and Development Policies: Leading Issues for the 1980s
The overall premium paid by these nations averaged close to 15 per cent during 1964-9, but this margin fell to about 11 per cent over 1970- 3. A factor here may have been the extension of preferential tariff margins to other EEe members, and the resulting increase in competitive pressures on French manufacturers. Loss of special tariff preferences has decidedly eroded France's market share in some associated countries, and may have initiated a pricing policy aimed at arresting these declines. 2 suggests the associates still pay an adverse price differential of over 10 per cent for their iron and steel imports.
In only one instance, that for iron and steel tube fittings during 1972-3, does a non-associated group (developing countries) record a unit value exceeding that of the French associates. While it is difficult to draw firm conclusions, the recent experience suggests that the adverse price margins have been reduced in the 1970s. The overall premium paid by these nations averaged close to 15 per cent during 1964-9, but this margin fell to about 11 per cent over 1970- 3. A factor here may have been the extension of preferential tariff margins to other EEe members, and the resulting increase in competitive pressures on French manufacturers.
7 Another factor was that most of the associated countries had little or no domestic production to effectively compete with foreign sources of supply. In this situation, import prices had the potential to be determined largely by foreign firms. 1 Comparison of Sample Statistics with Total French Iron and Steel Exports over the Period 1964-73 Period 1964-65 1966-67 1968-69 1970-71 1972-73 Total French iron and steel exports Sampled for unit value comparisons Value of Total value of No. of unit values computed shipments French exports Per cent of exports in sample (1000) (1000) 699 684 617 695 730 779281 714683 812641 1135507 1443396 1854617 1874646 2135326 3087850 4273801 42·0 38·1 38·1 36·8 33-8 3425 4885508 13226240 36·9 Source: All data on French iron and steel shipments were taken from United Nations, World Trade Annual, Vol.