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GATT rules, so that as a GATT member, China would be able to
export to the UK on easier terms than at present.
7. The EC/China Trade and Economic Co-operation Agreement
dates from 1978 and remains in force unless denounced by either party. The agreement provides mutual Most-Favoured-Nation treatment (as in Article I of the GATT). But otherwise the
agreement is looser than the full provisions of GATT, and looser even than the restrictive protocols of Accession to GATT signed by present State Trading members. For example, the EC is only required to endeavour to liberalise quotas on imports from China,
where it undertakes to do so under the Protocols of Accession of
of Poland, Hungary and Romania.
8.
Community legislation for taking safeguard action against imports from China (Regulation 1766/82 mirrors Article XIX of GATT in that action may only be taken where imports are greatly increasing and cause or threaten substantial injury to EC producers. But the regulation is tougher, in that it provides for action to be taken more quickly and makes no provision that
safeguard quotas be based on traditional trade.
9. Annual EC legislation is required to authorise the specific import quotas which Member States allow China (and other state traders). For the UK these quotas cover matches, leather gloves, footwear, hats and pottery. Any protocol of Chinese accession to the GATT would need to allow for existing restrictions on imports from China to be continued, possibily with provisions for gradual liberalisation.
10. China has, since January 1948, been a signatory of the MFA, which is operated under the auspices of GATT. Under the Community's GSP scheme China receives duty-free treatment for
imports of a number of goods, including textiles. But China
receives the least beneficial treatment of all GSP countries.
Consequences for the GATT
11.
China's accession to GATT would give her competitive
industries easier access to UK markets. It would limit HMG's
freedom to curb that access if it became embarrassing. And it would provide no reciprocal advantage to British export trade.
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