WEDNESDAY, APRIL 25, 1984
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FRANCE SETS THREE-YEAR QUOTA ON WATCHES
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THE TRADE DEPARTMENT RECEIVED CONFIRMATION TODAY THAT THE EEC COMMISSION HAD FORMALLY ANNOUNCED ITS DECISION TO AUTHORISE FRANCE TO INTRODUCE A TEMPORARY QUOTA GOVERNING THE IMPORT OF DIGITAL QUARTZ WATCHES. THIS DECISION WAS PUBLISHED IN THE EEC OFFICIAL JOURNAL ON APRIL 19 AND TOOK EFFECT ON THE FOLLOWING DAY.
THE QUOTA ARRANGEMENT WILL APPLY FOR THREE YEARS TO ALL SUPPLIERS EXCEPT THOSE COVERED BY A FREE TRADE AGREEMENT WITH THE EEC. THE LIMIT FOR THE FIRST YEAR, 1984, IS 6 793 000 PIECES. IT WILL GROW BY FIVE PER CENT PER ANNUM. WITHIN THE ANNUAL QUOTA, LIMITS ARE SET FOR MAJOR SUPPLIERS. THE LIMIT FOR HONG KONG FOR 1984 IS 4.4 MILLION PIECES. THIS WILL ALSO GROW BY FIVE PER CENT PER YEAR. THE NEW ARRANGEMENTS WILL SUPERSEDE THE EXISTING DISCRIMINATORY RESTRICTIN ON IMPORTS OF HONG KONG QUARTZ WATCHES MAINTAINED BY FRANCE.
COMMENTING ON THE EEC'S DECISION, A SPOKESMAN OF THE TRADE DEPARTMENT EXPRESSED REGRET THAT THE COMMISSION CONSIDERED PROTECTION NECESSARY FOR FRANCE'S WATCH INDUSTRY. HE NOTED, HOWEVER THAT THE NEW ARRANGEMENTS WERE NOT AS DISCRIMINATORY AGAINST HONG KONG AS THE RESTRICTIONS MAINTAINED BY FRANCE AGAINST HONG KONG SINCE OCTOBER 1981. THERE HAD ALSO BEEN AN ATTEMPT BY THE COMMISSION TO HAVE REGARD TO GATT PROVISIONS IN REACHING ITS DECISION, ALTHOUGH THE QUESTION OF WHETHER THE QUOTA ARRANGEMENT WAS FULLY CONSISTENT WITH THE GATT COULD NOT BE DETERMINED UNTIL A MORE THOROUGH EXAMINATION HAD BEEN CARRIED OUT.
IN THIS CONNECTION, THE SPOKESMAN SAID, THE COMMISSION'S DECISION WOULD HAVE TO BE NOTIFIED SHORTLY TO THE GATT COUNCIL AND CONSIDERED BY ITS MEMBERS, HONG KONG WOULD FOLLOW CLOSELY AND PARTICIPATE IN SUCH CONSIDERATIONS.
TURNING TO THE REMAINING RESTRICTIONS STILL BEING MAINTAINED BY FRANCE ON IMPORTS FROM HONG KONG OF TOYS, RADIOS AND UMBRELLAS, THE SPOKESMAN SAID THAT THE HONG KONG GOVERNMENT WOULD CONTINUE TO PRESS FOR THE EARLY TERMINATION OF THESE RESTRICTIONS.
HE SAID THAT HONG KONG'S REPRESENTATIVE HAD RAISED THIS ISSUE AT A NUMBER OF MEETINGS OF THE GATT COUNCIL ON OCTOBER 3, NOVEMBER 1, 1983 AND FEBRUARY 7, 1984 - AND THE DEPARTMENT WAS ENCOURAGED BY THE SUPPORT RECEIVED WITHIN THE COUNCIL.
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