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Washington. Tokyo, UKDEL DECD, Al1 DEC Posts.
ن
UKREP Brussels
GATT: MTN: NON-TARIFF MEASURES, SUB-GROUP ON QUANTITATIVE RESTRICTIONS, 7TH LEETING, 5 JULY 1977
General
1.
As expected (and usual) a short low-key meeting, largely taken up by the first reading of the Australian proposal for a progressive removal of "illegal QRs", There were some pucaraging noises from the US, Austria and developing countries who favoured a general forme for liberalisation, but the Community, Canada and Japan repeated their view that bilateral procedures offer better prospeets.
Co-ordination
2. The Community line had been deaided by 113 Deputies on 24 June
UKREP Brussels telno 4263,
Discussion QRS
+
These
3. Australia introduced their detailed proposals (MIN/NTH/W/106) fe the progressive removal of Qla inconsistent with the GATT. include a standstill; phasing our by set date of existing alleged QRS, unless they can be justified under an exceptions procedure; those subject to exceptions procedure to be discussed with countries with a substantial trade interest with a view to drawing up a (longer) phasing out programme (POP); for QRS involved in a POP the affected country would formally waive its GATT rights under Articles XXII and XXIII (clearly the Australians intend that GATT rights should be invoked on remaining QRS not subject to FOP and that the Contracting Parties would be forced to rul on their legality or otherwise); all QRS, both legal and illegal, to be catelogued and subject to scrutiny,
Australia argued that a multilateral solution must be found for dealing with illegal QRS so that a proper balance could be achieved between GATT members in terms of their observance of GATT rules. This was a pre-requisite to progress elsewhere in the negotiations. The MTNS provided both the practical and political opportunity for achieving this balance. Failure to reach a multilateral solution on illegal QRS would indicate the futility of drawing up new GATT rules in other areas such as subsidies and countervai ling.
/5.