THURSDAY, MAY 29, 1980
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+SURELY THEIR EXPORTS COULD NOT HAVE INCREASED SHARPLY AND SUBSTANTIALLY TO A LEVEL CAPABLE OF CAUSING OR THREATENING SERIOUS DAMAGE. THE POINT IS NOT WHETHER OTHER DEVELOPING COUNTRIES SHOULD SHARE THEIR MARKETS, BUT RATHER WHY SHOULD NEW AND SMALL SUPPLIERS BE RESTRICTED AT ALL?+
THE CONCEPT WHICH HAS MOST UPSET THE BALANCE OF THE ORIGINAL MEA WAS UNDOUBTEDLY THE INTRODUCTION OF THE REASONABLE DEPARTURES PROVISION WHEN THE ARRANGEMENT WAS RENEWED IN 1978, SHE SAID.
+THE EEC INSISTED ON THIS PROVISION AS A CONDITION FOR RENEWING THE MFA IN ORDER TO STABILISE THE RATE OF PENETRATION OF IMPORTS INTO THE EEC AT 1976 TRADE LEVELS AND TO PROVIDE MORE FAVOURABLE TREATMENT FOR SMALL SUPPLIER COUNTRIES AND OTHER NEWCOMERS TO THE MARKET.
+TO BREAK THE DEADLOCK OVER THE PRE-OCCUPATION BY THE EEC WITH STABILISATION, A COMPROMISE WAS FORCED ON THE EXPORTING COUNTRIES IN THE FORM OF THE PROTOCOL EXTENDING THE MFA, WHICH STATED THAT TWO PARTIES MAY REACH A MUTUALLY ACCEPTABLE SOLUTION ....
WHICH DOES INCLUDE THE POSSIBILITY OF JOINTLY AGREED REASONABLE DEPARTURES FROM PARTICULAR ELEMENTS IN PARTICULAR CASES'.
+THIS PROVISION HAS BEEN USED BY DEVELOPED COUNTRIES AS A LICENCE TO DISREGARD THE TERMS OF THE MFA AND TO EXTRACT HIGHLY RESTRICTIVE BILATERAL AGREEMENTS FROM DEVELOPING EXPORTING COUNTRIES, DECLARED MISS DUNN.
+FOR TWO YEARS SINCE ITS INTRODUCTION WE HAVE WITNESSED A PROLIFERATION OF BILATERAL AGREEMENTS ALL HAVING FEATURES WHICH ARE AT VARIANCE WITH THE LETTER AND THE SPIRIT OF THE MEA. THESE INCLUDE, AMONGST OTHERS, AGREEMENTS WITH FLEXIBILITY PROVISIONS FAR LESS THAN THE MFA MINIMA,+
WHILE THE AGREEMENT BETWEEN HONG KONG AND USA PROVIDED FOR AN ANNUAL GROWTH RATE OF SIX PER CENT IN THE AGGREGATE, THE GROWTH FOR WOOL PRODUCTS WAS ONLY ONE PER CENT. IN COTTON TROUSERS AND COATS, THE GROWTH WAS ONLY 4.4 PER CENT, QUOTED MISS DUNN. IN SO-CALLED HOT ITEMS+, WHERE THE CONSUMER DEMAND WAS STRONG, THE AGREEMENT PROVIDED FOR A GROWTH RATE OF ONLY THREE PER CENT.
IN THE AGREEMENT BETWEEN THE EEC AND HONG KONG, FIVE CATEGORIES HAD LESS THAN ONE PER CENT GROWTH, AND 32 CATEGORIES LESS THAN SIX PER CENT. REFERRING TO CUTBACKS IN QUOTAS, IN THE EEC'S AGREEMENT WITH HK, NOT ONLY WERE THE 1978 RESTRAINT LIMITS BASED ON 1976 TRADE LEVELS INSTEAD OF 1977 QUOTAS, BUT THEY ALSO INVOLVED CUTBACKS FOR CERTAIN CATEGORIES, SHE SAID.
THE REASONABLE DEPARTURES PROVISION WAS ACCEPTED BY DEVELOPING COUNTRIES ON THE UNDERSTANDING THAT DEPARTURES WOULD BE TEMPORARY AND THAT THE PARTICIPANTS SHOULD RETURN
IN THE SHORTEST POSSIBLE TIME TO THE FRAMEWORK OF THE ARRANGEMENT.
/+THE BASIC