OF 23223OZ MAY 86
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1906
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INFO PRIORITY UKMIS GENEVA MEXICO CITY UKREP BRUSSELS
MADELIN (TP, DTH)'S LETTER OF 20 MAY TO PLUMBLY:
MEXICAN ACCESSION TO THE GATT
SUMMARY
BUT THEY 1. US INSISTING ON TOUGH TERMS FOR MEXICAN ACCESSION. ALSO ATTACH PRIORITY TO ACHIEVING AGREEMENT WITH THE MEXICANS, AND DO NOT BELIEVE THAT THE MEXICAN GOVERNMENT WOULD BE ABLE TO STAVE OFF DOMESTIC POLITICAL CRITICISM OF GATT ACCESSON IF NEGOTIATIONS DRAGGED ON BEYOND THE END OF THE YEAR.
DETAL
2. USTR (MS KLEYN) AND STATE (MS BOWMAN) TOLD US TODAY THAT THE US CONTINUED TO INSIST ON TOUGH TERMS FOR MEXICAN ACCESSION. THE PROTOCOL OF ACCESSION SHOULD LEAVE MEXICO NO DISCRETION TO CONTINUE GATT ILLEGAL PROTECTION. THE PROTOCOL WHICH HAD BEEN NEGOTIATED, BUT THEN ABANDONED BY THE MEXICANS, IN 1979 HAD BEEN TOTALLY INADEQUATE. MTN CODES, USTE THOUGHT IT MOST IMPORTANT
THAT THE MEXICANS ACCEDE TO THE IMPORT LICENSING AND CUSTOMS
VALUATION CODES. THEY WERE NOT SO CONCERNED ABOUT SUBSIDIES
(BECAUSE OF THEIR BILATERAL AGREEMENT). ON ANTI-DUMPING THEY
WOULD WISH THE MEXICANS TO AMEND THEIR FOREIGN TRADE LAW TO
ALLOW FOR MATERIAL INJURY, BUT THE CODE WAS NOT SUCH A HIGH PRIORITY: THE SAME WAS TRUE OF GOVERNMENT PROCUREMENT, ALTHOUGH IT WAS IMPORTANT THAT THE MEXICANS APPLY ARTICLE 17 OF THE GATT
IN RESPECT OF STATE TRADING ENTITIES.
3. WE ASKED ABOUT THE FOUR PRINCIPLES THE MEXICANS WISHED TO ANNEX TO THEIR PROTOCOL. MS KLEIN SAID THAT THEY WERE TOTALLY UNACCEPTABLE, BUT WENT ON TO IMPLY THAT THE US MIGHT BE PREPARED TO ACCEPT SOME LANGUAGE ON THE POINTS CONCERNED IF THEY OBTAINED SATISFACTION IN OTHER AREAS: NO DECISION HAD YET BEEN TAKEN.
ON TARIFFS, MS KLEIN SAID THAT THE US HAD DECIDED NOT TO PURSUE A MAXIMUM TARIFF, AS SUGGESTED IN THE UK
we
P
PAPER, MAINLY BECAUSE THEY THOUGHT THAT WHATEVER THE MEXICANS MIGHT SAY AT THE MOMENT IT WOULD BE MORE DIFFICULT TO NEGOTIATE IN THE LONG RUN. THEY WERE THEREFORE PURSUING THE 608
TARIFF CUTS AND 200 PLUS ADDITIONAL BINDINGS WHICH THEY HAD
REQUESTED OF THE MEXICANS BILATERALLY AS A CONDITION OF AGREEMENT
TO ACCESSION.
5. MS KLEN AND MS BOWMAN SAID THAT THE US WOULD MAKE AN EFFORT
TO HELP THE MEXICANS MEET THEIR DEADLINE OF ACCESSION IN
THME FOR THE SEPTEMBER GATT MINISTERIAL.
>IN PRACTICE THIS MEANT THAT
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