U.S. QUESTIONS ARGENTINA-BRAZIL AGREEMENT.

GENEVA, OCTOBER 21 (IFDA)—The United States sought in the Council of the General Agreement this week the establishment of a GATT working party to review the agreements signed by the presidents of Argentina and Brazil for mutual trade preferences and integration of their economies.

The two presidents had signed the agreement within the context of the ALADI agreement in Latin America, and had invited other ALADI members to join the process initiated by them.

The United States had wanted the working party set up to review the agreements and possible impact on trade of other contracting parties. It had raised the issue at the September meeting of the GATT Council under any other business.

The subject had been discussed at the meeting of the GATT’s Committee on Trade and Development (CTD), earlier this month.

At the GATT Council this week when the U.S. raised the issue, Brazilian delegate, Julio Caesar Zellner Goncalves, speaking also on behalf of Argentina, noted that the issue had come up at the CTD and brazil had made a comprehensive statement both on the ALADI and the agreements signed by the presidents of Argentina and Brazil.

The two delegations hoped that the statement in the CTD had covered all aspects raised by other countries. They were also willing to clarify any further doubts on the Brazilian-Argentinean integration process within the context of the 1980 Montevideo treaty, and provide information in the appropriate body, the CTD.

Canada and the EEC reportedly welcomed the offer to provide more information, while the U.S. in response reportedly said that it retained its request for a working party.

However the U.S. did not pursue the matter further, and the council merely took note of the statements.