XN000022-1992-11-27 — Page 19

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FRIDAY, NOVEMBER 27, 1992

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"WE ARE CONFIDENT THAT THERE WILL BE A SATISFACTORY OUTCOME AND THAT THERE WILL BE A SHORT EXTENSION OF THE MFA AGREED POSSIBLY OF 12 MONTHS

TO SEE US THROUGH то THE INTRODUCTION OF THE UR PACKAGE, MR TSANG SAID.

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HOPE FOR

WRAPPED

ON THE WAY FORWARD, HE SAID IF THE UR WAS SUCCESSFULLY UP IN THE NEXT FEW MONTHS, A VERY GRADUAL, 10-YEAR PHASE OUT OF RESTRICTIONS TO BEGIN IN JANUARY 1994 COULD BE EXPECTED.

BUT, IF THE OUTCOME OF THE ROUND WAS DELAYED, MR TSANG SAID THERE WOULD BE SOME HARD BARGAINING NEXT YEAR.

IT

"MANY EXPORTING COUNTRIES ARE LOSING PATIENCE WITH THE MFA. HAS BEEN EXTENDED AND EXTENDED, WE NEED TO SEE LIGHT AT THE END OF THE TUNNEL. WE STAND READY TO RESPOND ΤΟ THAT CHALLENGE SHOULD IT COME, HE SAID.

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WHILE TALKING ABOUT THE ATTRACTIONS OF THE DRAFT UR TEXT ON TEXTILES WHICH PROVIDES FOR A GRADUAL, 10-YEAR PHASE OUT, MR TSANG CAUTIONED THAT THE HANDS OF THE IMPORTERS ARE ALSO STRENGTHENED IN CERTAIN RESPECTS".

**

"FIRSTLY, IF A PARTY FAILS TO LIVE UP TO ITS GATT OBLIGATIONS + THE GATT COUNCIL MAY AUTHORISE ADJUSTMENT TO THE GROWTH RATES FOR THE SECOND AND THIRD PHASES OF THE AGREEMENT.

"SECONDLY, ON CIRCUMVENTION, IMPORTERS HAVE THE RIGHT TO DEDUCT QUOTA LEVELS FROM THE COUNTRY OF ORIGIN AND TO INTRODUCE RESTRAINTS ON PLACES RESPONSIBLE POR FRAUDULENT TRANSHIPMENT, UNILATERALLY ALBEIT AFTER DUE CONSULTATION, MR TSANG SAID.

HE CALLED ON PULL CO-OPERATION FROM THE TRADE TO PROTECT HONG KONG'S INTERESTS IN THIS AREA.

MR TSANG OUTLINED THE TIME FRAME FOR MFA'S RETURN TO GATT RULES: ASSUMING THAT THE UR PACKAGE WILL TAKE EFFECT FROM JANUARY 1, 1994, THEN EACH IMPORTING COUNTRY MUST INTEGRATE INTO THE GATT PRODUCTS REPRESENTING 16 PER CENT OF THE VOLUME OF IMPORTS COVERED BY THE AGREEMENT ON THE FIRST DAY OF IMPLEMENTATION; A FURTHER 17 PER CENT BY JANUARY 1997; AND ANOTHER 18 PER CENT BY JANUARY 2001 WHILE THE REMAINING 49 PER CENT WILL BE INTEGRATED AT THE END OF THE AGREEMENT WHICH IS JANUARY 2004.

THE PRODUCTS TO BE INTEGRATED AT EACH STAGE WILL INCLUDE A COMBINATION OF TOPS AND YARNS, FABRICS, MADE-UP TEXTILE PRODUCTS AND CLOTHING TO BE CHOSEN BY THE IMPORTING COUNTRY,

"IN PRACTICE, IMPORTING COUNTRIES WILL CHOOSE THE PRODUCTS TO BE PHASED OUT VERY CAREFULLY.

"FEW PRODUCTS OF ANY REAL TRADE INTEREST TO HONG KONG WILL BE PHASED OUT UNTIL THE LATTER STAGES, MR TSANG EXPLAINED.

"FOR PRODUCTS NOT YET INTEGRATED INTO THE GATT, QUOTA LEVEL WILL BE BUILT ON EXISTING RESTRAINT LIMITS, AND DURING THE TRANSITION PERIOD, BE INCREASED AT A FASTER RATE THAN THE PRESENT, BY SLIGHTLY ENHANCING THE GROWTH RATES FOR EACH CATEGORY.

/"FLEXIBILITY PROVISIONS