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MFA sets out special and in principle temporary provisions for
international trade in low cost textiles.
Negotiated in GATT and
in effect a derogation from normal GATT Rules. Provides framework
for orderly world market in products concerned, of which Hong Kong
is by far the largest exporting country.
GATT is the cornerstone of Hong Kong's commercial policy. Has GATT
rights as if Contracting Party by virtue of UK's acceptance on
Hong Kong's behalf. Hong Kong officials, accredited as members of
the UK Mission, speak in GATT making clear that they do so on
Hong Kong's behalf. UK signs GATT Agreements on behalf of Hong Kong.
These include MFA, though bilateral restraint agreements under MFA
between Hong Kong and individual importing countries are negotiated
and signed by Hong Kong in its own right.
China not a Contracting Party to GATT. Nationalist Government signed
Protocol of Provisional Application in 1948 but withdrew in 1950.
According to latest (1981) information, no immediate prospect of PRC
applying to join GATT but it may be that their attitude is becoming
more positive. Request to attend GATT Ministerial in November has
been accepted by Contracting Parties. But application to accede
or (rather less likely) attempt to 'reclaim China seat' would be
fraught with difficulties. GATT predicated on assumption that
Contracting Parties are market economies.
Special regimes have
been imposed on those state traders which have negotiated terms for
accession (Poland, Hungary, Romania).
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