f, NOVEMBER 18, 1983
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GATT'S IMPORTANCE TO HK STRESSED
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HONG KONG RELIED HEAVILY ON BOTH THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) AND THE MULTI-FIBRE ARRANGEMENT (MFA) IN ITS EXTERNAL COMMERCIAL RELATIONS, THE DEPUTY DIRECTOR OF TRADE, MR JOHN CHAN, SAID TODAY.
SPEAKING AT A LUNCHEON MEETING OF PO LEUNG KUK DIRECTORS MR CHAN SAID THE GATT, WHICH DEALS WITH INTERNATIONAL TRADE IN GENERAL, WAS THE MORE IMPORTANT MULTILATERAL TREATY FROM HONG KONG'S POINT OF VIEW, THAN THE MEA, WHICH DEALS WITH TEXTILES AND CLOTHING IN PARTICULAR.
ONE OF THE GATT'S MAIN FUNCTIONS IS TO PROVIDE A FRAMEWORK FOR DISCUSSION AND SETTLEMENT OF DISPUTES AND TRADE PROBLEMS BETWEEN MEMBERS, MR CHAN SAID,
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MR CHAN SAID THE GATT WHICH PROVIDES FOR FREE TRADE WORK TO PROTECT HONG KONG'S INTERESTS, AND EXPLAINED HOW IT HAD DONE SO IN HONG KONG'S DISPUTE WITH FRANCE OVER QUANTITATIVE RESTRICTIONS ON HONG KONG PRODUCTS, INCLUDING QUARTZ WATCHES.
MR CHAN SAID THAT, DESPITE REPEATED BI-LATERAL NEGOTIATIONS, FRANCE HAD CONTINUED TO IMPOSE QUANTITATIVE RESTRICTIONS ON A NUMBER OF HONG KONG PRODUCTS, HONG KONG THEN REFERRED THE MATTER IN SEPTEMBER 1982 TO THE GATT, WHICH DECIDED TO ESTABLISH A PANEL TO LOOK INTO THE COMPLAINT.
+THE PANEL WAS ESTABLISHED IN DECEMBER 1982 AND, FOLLOWING DETAILED INVESTIGATIONS DURING WHICH THE PANEL HEARD PRESENTATIONS BOTH BY HONG KONG AND BY THE EUROPEAN COMMISSION ON BEHALF OF FRANCE, SUBMITTED ITS REPORT TO THE GATT COUNCIL IN JULY 1983.
+ IN ITS REPORT, THE PANEL CONCLUDED THAT THE QUANTITATIVE RESTRICTIONS MAINTAINED BY FRANCE AGAINST HONG KONG WERE INCONSISTENT WITH THE RELEVANT PROVISIONS OF THE GATT. THE PANEL RECOMMENDED THAT FRANCE TERMINATE THESE QUANTITATIVE RESTRICTIONS,+ HE SAID.
THE GATT COUNCIL ADOPTED THE PANEL'S REPORT WITHOUT RESERVATION THAT SAME MONTH, MR CHAN SAID.
SINCE THEN, THE FRENCH GOVERNMENT HAS OFFICIALLY ANNOUNCED THE TERMINATION OF THE RESTRICTIONS ON THREE PRODUCTS, HE SAID. IT WAS ALSO CONSIDERING WHAT ACTION TO TAKE TO COMPLY WITH THE GATT DECISION ON FIVE OTHER PRODUCTS, HE ADDED.
*WE ARE WATCHING THE SITUATION CLOSELY AND INTEND TO KEEP UP THE PRESSURE TO ENSURE THAT THESE REMAINING QUANTITATIVE RESTRICTIONS ARE EITHER LIFTED OR, AT LEAST, MADE FULLY CONSISTENT WITH THE GATT, MR CHAN STRESSED.
MR CHAN SAID THAT WITHOUT THE PROTECTION OF THE GATT, HE VERY MUCH DOUBTED IF HONG KONG COULD HAVE ATTAINED ITS PRESENT POSITION AS THE SEVENTEENTH LARGEST TRADING UNIT IN THE WORLD.
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