NICS' domestic markets. It equally touches the preferential
advantages which all developing countries currently enjoy through
the Generalised System of Preferences. It is clearly right for the
European Community, and other GSP donors, to continue these tariff
preferences
for the benefit of the poorer countries of
the Third World. What is increasingly being questioned is whether
the NICS require the same special help. Their ability to compete
effectively has been established beyond doubt. Their national
wealth, in terms of GNP per head, is in certain cases approaching
that of some OECD countries. We ask them to recognise that they no
longer need, and cannot expect, an indefinite continuation of GSP
benefits. Such benefits should increasingly be concentrated on the
less prosperous countries of the developing world.
12.
In
Secondly, we have to ask all developing countries and particular
the NICS - to recognise the social problems which can arise if
particular sectors are overwhelmed by massive import penetration.
these cases - and so far they have been largely confined to a few
particularly sensitive sectors import restraints may be necessary
to allow adjustment to proceed at a socially tolerable pace.
As you
know we are seeking clear recognition in the GATT of the right in
certain circumstances to take selective safeguard action.
No purpose
-
is served by restricting all world trade in a particular product to
tackle a problem deriving essentially from a single new supplier. Non-
discriminatory action in these cases is unnecessarily damaging to other
suppliers - developing as well as developed."
13. Special sectoral arrangements have long been needed to tackle the