WEDNESDAY, SEPTEMBER 17, 1986
CREEP ING MALAISE THREATENING WORLD TRADE
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HO
NOT ONLY THE STABILITY BUT THE VERY EXISTENCE OF THE MULTILATERAL TRADING SYSTEM IS NOW UNDER THREAT, THE SECRETARY FOR TRADE AND INDUSTRY. MR E.P. HO. SAID WHEN ADDRESSING A MEETING YESTERDAY (SEPTEMBER 16) OF CONTRACTING PARTIES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN URUGUAY.
HE SAID THAT HONG KONG SUPPORTED THE IDEA OF A NEW ROUND OF GATT TALKS. A CREEPING MALAISE HAD BEEN AFFLICTING INTERNATIONAL COMMERCE. IMPEDING DEVELOPMENT OF WORLD TRADE IN ALL SECTORS RANGING FROM BASIC RESOURCE PRODUCTS TO ADVANCED TECHNOLOGY GOODS.
+PROTECTIONISM PREVAILS, AS IS EVIDENT FROM THE INCREASING TENDENCY OF TRADING NATIONS IN PARTICULAR MAJOR INDUSTRIALISED COUNTRIES, TO RESORT TO NATIONAL TRADE POLICIES OF AN INWARD- LOOK ING AND RESTRICTIVE NATURE.
+THE SOLE AIM OF THESE SHORT-SIGHTED, EXPEDIENT POLICIES IS TO INSULATE THE SHELTERED, OFTEN AILING, DOMESTIC INDUSTRIES FROM INTERNATIONAL COMPETITION, CONTRARY TO THE FUNDAMENTAL PRINCIPLES OF STRUCTURAL ADJUSTMENT AND COMPARATIVE ADVANTAGE, AND RESULTING IN DISTORTION AND CONTRACTION OF INTERNATIONAL TRADE,+ HE SAID.
+THUS, LONG-STAND ING PROBLEMS IN THE AREA OF TARIFFS, SUCH AS TARIFF PEAKS AND TARIFF ESCALATION, REMAIN UNRESOLVED. NON- TARIFF MEASURES PROLIFERATE, AND SUCH MEASURES ARE OFTEN TAKEN OUTSIDE THE RULES OF THE GATT SYSTEM WHETHER IN THE OBVIOUS FORMS OF VOLUNTARY EXPORT RESTRAINTS OR ORDERLY MARKETING ARRANGEMENTS, OBSCURE DISTRIBUTION SYSTEMS, AND EVEN HEALTH REGULATIONS.
+THE SITUATION HAS DETERIORATED TO THE EXTENT THAT NOT ONLY THE STABILITY BUT THE VERY EXISTENCE OF THE MULTILATERAL TRADING SYSTEM IS THREATENED, HE ADDED.
HONG KONG WAS A SMALL CONTRACTING PARTY, HE SAID, AND TRADE IS ITS LIFE BLOOD.
+ACCORDINGLY. WE PLACE A HIGH PRIORITY ON ADHERENCE TO THE PRINCIPLES OF AN OPEN MULTILATERAL TRADING SYSTEM. HENCE, WE ALSO VIEW WITH CONCERN THE DEVELOPMENT AND INTENS IFICATION OF CONFLICTS IN KEY SECTORS SUCH AS AGRICULTURE, WHERE EXISTING RULES ARE IMPRECISE AND SCARCELY ADHERED TO.
+THOSE INVOLVED. IN FARM TRADE ARE, OF COURSE, THE MOST DIRECTLY CONCERNED, BUT AS PROBLEMS IN THIS SECTOR TEND TO INFLAME OTHER SECTORS. NO MEMBER OF THE INTERNATIONAL TRADING COMMUNITY CAN BE UNAFFECTED.
/+CLEARLY, THE