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exporting countries opposing the EC's restrictive imports
policy.
4.
The PRC is a command economy and state trader.
General Agreement on Tariffs and Trade (GATT) and the
Multi-Fibre Agreement (MFA)
5. GATT is both an international agreement setting
out the ground rules for the open trading system and an
international organisation which provides a forum for
trade negotiations and for the settlement of disputes.
Each Contracting Party to GATT has rights of access to other
Contracting Parties' markets for its exports, and
obligations in respect of access to its own market for
their exports.
6. The MFA sets out special (and in principle temporary)
provisions for international trade in low cost textiles.
It is negotiated in the GATT and is in effect a
derogation from normal GATT Rules. It provides a frame-
work for an orderly world market in the products concerned,
of which Hong Kong is by far the largest exporting
country.
7.
GATT is the cornerstone of Hong Kong's commercial
policy. Hong Kong has GATT rights as if it was a
Contracting Party by virtue of the United Kingdom's
acceptance on Hong Kong's behalf. Hong Kong officials,
accredited as members of the UK Mission, speak in GATT
making it clear that they do so on Hong Kong's behalf.
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/The