CONFIDENTIAL
On this beais, once the above mentioned limits were reachog:
for sensitive products, preferential entry would be halted Lutonatically
Es soon as the teriff quota was fulfilled;
for non-sensitive products, proference would be susponded at the request
of a member state as soon as the predetermined ceiling was reached.
In addition it has been indicated, that for producte not initially on
the list of senzitive products which might give rise to difficulties
after the entry into force of the preferential system, a decision right
be taken:
advice -to subject them to a syete of e.ntrol by means of decisions de prior
to import tior;
to transfer them to the category of sensitive products subject to túriff
quotes.
b) Diath:ction betheen developing countries
The delegations strutsed the actirability of providing for the
Sorelbility of excluding one or more developing countries from the benefit
of preference in respect of products in which they have become particularly
competitive.
Such ection for excluɛion would be taken if a danger were observed
of such country or countries monopolising the triff quote or predetermined
ceiling to the detriment of other less competitive developing couniiies. In this point & proposed we made that imports from a beneficiery country
cxcceding 50% of any quote or ceiling should be excluded from preferential
treetrent.
c) Other safeguard rocedures
"The Italian delegation drew attention to the necessity of formulating
special ma cures allowing swift action to be talan (even before the
predetermined ceing were reached) in exceptional and unzorstœble
circumstances to avert serious diɛruption of the market. The delogɛtion
considered that to this end a general safeguard diruse should be included
in addition to the messures indicated in a) (nd b) above.
CUPIDEMIAL
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