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CONFIDENTIAL

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country is already or becomes competitive in specific products, conditions of access to developed country markets need not be improved by preferential tariff treatment.

2.

Preferential treatment would apply, as a general rule, to all manufactured and semi-manufactured industrial products in chapters 25 to 99 of the Brussels Nomenclature and to the agriculture and fishery products set out in the tables attached as Annex B.2/

3. The preference would consist of 10 percentage points or 50 percent whichever is the larger preference.

4.

The preference would be withheld initially or with- drawn subsequently on a product from a country which supplied by value in any calendar year more than 10 per- cent, amounting to at least $100,000, of total imports in the relevant tariff item.

5. An escape-clause mechanism would exist by which preferences on an item could be withdrawn or reduced on grounds of injury to domestic producers or third country suppliers.

Attachments:

Annex A

G

Annex B

Illustrative List of Sensitive Product Categories

Illustrative Positive List of Products

in BTN Chapters 1-24

1/ See paragraph 7 under "Qualifications of General

Applicability.

2/ This list is illustrative only see paragraph 8

under "Qualifications of General Applicability."

CONFIDENTIAL

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