CONFIDENTIAL
initially invoked Article XXXV wholesale (but
subsequently withdrew its reserve) while others, such
as South Africa, maintain under Article XXXV certain
tariffs on Japanese goods which would be discriminatory
under the full GATT rules.
20.
The
Within the constraint of possible developing
country status, what special terms for China could be
considered? Normal GATT rules are intended to govern
trading relationships between market economies.
presumption is that the GATT rules ensure fair
competition and that, even when the competition is
fierce and painful, open trade will be maintained, to
the benefit of members. The burden of proof lies on
the party who believes himself the victim of "unfair"
competition: he must find evidence of subsidy or
dumping. In the case of China, this would not do. The
onus of proof would have to be reversed. What
provisions in a Protocol of Accession would have this
effect? The following are possibilities:-
(a)
Tariffs:
It would in theory be possible to exclude China
from the benefits of MFN bindings. This would
permit unilateral, uncompensated action to raise
the level of duties if the EC were faced with a
CONFIDENTIAL