CONFIDENTIAL
stipulate that safeguard quotas be based on traditional
Moreover, while there has been a certain amount
trade.
of liberalisation and relaxation of EC quotas on
Chinese imports since 1978, there is still a fairly
long list of products subject to quota (including
matches, gloves, hats, shoes, radios and china; and
textiles, which are covered by a separate agreement).
Some goods (eg TV sets) may not be imported at all.
countries have so far been unwilling to respond
generously to China's request for increased market
access, given the sensitivity of many of the sectors of
Community industry threatened by the Chinese imports.
15.
EC
In trade policy terms, there is room for debate
about the value of quantitative restrictions (QRS).
They limit consumer access to attractively priced
goods, and limit access also for producers to cheap
semi manufactured goods for further processing (eg.
Laura Ashley's. use of Chinese grey cloth). Even
without QRS, the normal provisions of the GATT allow
for safeguard access where a sudden increase in imports
threatens serious injury to domestic producers. But
use of Article XIX selectively
i.e. against a
particular country
-
is opposed in the GATT not only by
the LDCS but also by the US; injury is not always easy
to show (anyway, until serious damage has been done);
CONFIDENTIAL