prevailing or similer goods of comparable quality in the market of the importing country". This condition has g nerally been regarded as preventing the invocation of the LTA against develoned ountri a though there is nothing apart from the price requirement in the tems of the Agreement to prevent this. (It might thus be possible to invoke the LTA against Austrie if wa dawne not a member of BTA. It would, however, make it impossible to us the LTA against the U.3.A. Tariffs.
5. Thore is nothing in the LTA to prevent the use of Lariffs ur well no quotas or to prevent the Laposition of the GATT mfn rutes on Commonwealth suppliers.
Minimum Import Levels
6. The LTA lays down rides (in Annex B) about minimun isport 11. and growth.
The minimum level, if Article 3 is used, is "the level of actual irports or exporta during the 12 month period terminating 3 months precnding the month in which the request for consitation is rule". For each catiulug 12 months there shoul! be a growth factor of 5% though after consultation in exceptional cases a per:entage "between 5 an 0" may be applied. The UK hes not accepted the obligation to in rease access but the terms of Annex 1 cocks to make it impossible to cut import back, unless we could so ch w perquale exporting no ntries to accept cut-beck as part of "mutually neceptable" agreements unler Article 4. This seems unlikely.
WOILCOTTON TEXTILES AND COTTON TEX ILES FRO
Quantitative Restrictions
7.
OWER THAN LOCIST GUSTLI -90
In these cases our obligetions ar: governed by GATT 43 Tar up contructi parties are concerned. These include all significant supplere spert tea Taiwan and the astern Bloc corntries. Hong Fong also is in picial position
e as & dependen & territory; GANT obligations do not apply betwound i pouer en its dependient territories.
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tropoliten
2. Article XIX is the governing factor. This permits the use of mer auren hich may be in breach of GAFF obligations (c... increases in bound dutien or quantitative restrictions) ir "ar & result of unforeseen develo, menta al of the effect of obligations un: r GATT a product is being i: porost in zuch incr aset uantitian ani unier such conditi ɔns us to cause or threaten seri me injury to domestic producera or like or directly competitive prosunto." possible, prior notice should be given "ea fer in eivenos ko siy b of the intention to use Article XIX but "in cirtical circunabunergi notice may be dispensed with.
The other most important A XIX requirement, ar-
a. acti:n mual be non-liceriniratory as between member os GATT. This
would presumably require us, until we actually join 55C, to impere any restriction on EC members.
b. any GATT member whose trade is affected is entitled either to
compensation or failing this is allowed to retaliate.