Preferences: 



Preferences graiited on tobacco and tobacco products in Europe are briefly as follows: 

 Country Preference on leaf Preference on products 



United Kingdom 



Ireland 



Grants Br. Commonwealth 

 preference equivalent to 

 18.5 U. S. cents per lb. 

 on unstripped and 20.5 on 

 stripped leaf. 



None 



European Common 

 Market (EC) . . 



EFTA products enter duty-free 

 Commonwealth preference 

 products. 



Receives Br. Commonwealth 



preference equivalent $1 .90 



per pound on cigars; $1.86 



per pound on cigarettes; 



$1 .85 per pound on other products. 



Duty-free treatment is being granted on leaf and products from 

 member countries. Tobacco from Greece, Turkey and Associated Over- 

 seas Countries is also scheduled for full duty-free treatment. EC 

 tobacco products are being granted preferences in these same 

 countries. 



Portugal 



Spain 



Grants 15 U.S. cents per 

 pound preference to 

 imports from Portuguese 

 Overseas Territories. 



None 



Preference to EFTA members. 



Cuban tobacco and cigars had en- 

 joyed a special exchange rate until 

 Spain joined the International 

 Monetary Fund and discontinued 

 the system. To partially offset the 

 change to the single rate of ex- 

 change, the modus vivendi between 

 Spain and Cuba (November 1959) 

 provided for a reduction of 25 per- 

 cent of the Spanish internal 

 revenue tax on Cuban products. Per- 

 mission was granted for selling 1 

 million pesos of Cuban leaf for im- 

 port into the Canary Islands for 

 use in Spain cigars. 



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