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United States Department of State / Foreign relations of the United States diplomatic papers, 1934. The American Republics
(1934)

Colombia,   pp. 66-85 PDF (7.2 MB)


Page 74


FOREIGN RELATIONS, 19 3 4, VOLUME V
Colombia has been carefully considered by the competent legal officers
of this Government, and they have expressed grave doubt whether the
Trade Agreements Act authorizes the inclusion of this provision in
the proposed agreement. For this reason it is considered necessary to
propose that it be omitted. It may be pointed out, however, that in
the thirteen years during which the Anti-dumping Act has been in
effect there has been no occasion for the application of that Act to
green coffee imported from Colombia.
  The Government of the United States also desires further that the
whole of Article III of the Agreement signed December 15, 1933, be
omitted from the new agreement and that the other matters dealt with
in that article be provided for in general terms in Articles I and II, as
indicated in the attached draft of the new agreement. It is believed
that the provisions in Article III of the Agreement signed December
15, 1933, regarding additional duties on articles not marked to in-
dicate the country of origin and regarding anti-dumping duties are
adequately dealt with in the general clause proposed for inclusion in
Articles I and II, whereby the duty reductions on products specified
in the Schedules are confined to ordinary customs duties, and whereby
such products are exempted from any other duties, taxes, fees or
charges other or higher "than those imposed or required to be imposed
by laws . . . in effect on the date of the signature" of the Agreement.
  With reference to Article IV of the Agreement of December 15,
1933, relating to internal taxes, the changes suggested are based on
considerations similar to those with respect to the non-application
of anti-dumping duties to green coffee imported from Colombia. As
in the latter case, there is grave doubt whether the Trade Agreements
Act of June 12, 1934, authorizes the inclusion of any provision with
regard to the limitation of the amount of state or municipal taxes.
For this reason it is necessary to propose that the provisions of the
third paragraph of Article IV, whereby such a limitation is imposed,
be omitted from the new agreement. It will be observed that in the
proposed revision of the text the corresponding obligation on the part
of the Republic of Colombia with respect to departmental and munici-
pal taxes has been omitted.
  On the other hand, a further study of the legal considerations in-
volved has led to the conclusion that it would be possible, in conformity
with constitutional provisions, to include in the proposed new agree-
ment a provision for national and most-favored-nation treatment with
respect to state and municipal taxes. The provisions of the second
paragraph of the proposed revised text of Article IV have been modi-
fied in accordance with the above considerations. The Government
of the United States requests that, reciprocally, the provision for
national and most-favored-nation treatment in Colombia regarding
departmental and municipal taxes likewise be revised so as to be
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