XN000022-1994-07-07 — Page 21

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THURSDAY, JULY 7, 1994

PATH

"BRIEFLY THESE FOLLOW A

FROM BILATERAL CONSULTATION, THROUGH CONCILIATION TO A FORMAL PANEL; THE LATTER EFFECTIVELY HEARS THE EVIDENCE OF BOTH PARTIES AND SIT IN JUDGMENT ON WHETHER ANY PARTY HAS ACTED IN A WAY INCONSISTENT WITH GATT RULES," HE SAID.

"PREVIOUSLY THE PROCESS HAS BEEN INTERMINABLE AND ADOPTION BY THE GATT COUNCIL OF THE FINDINGS OF A PANEL COULD BE BLOCKED BY A SINGLE VOTE.

"WITH THE ESTABLISHMENT OF THE WTO, PROCEDURES MUST BE COMPLETED WITHIN 18 MONTHS, ADOPTION OF A PANEL'S FINDINGS DO NOT REQUIRE CONSENSUS, AND THE PANEL'S FINDINGS ARE BINDING.'

OF

MILLER HOWEVER, MR

SAID, EVEN THIS MARGINAL SURRENDER OF SOVEREIGNTY HAS BEEN CAUSE FOR ANXIETY AMONG SOME CONTRACTING PARTIES. HE NOTED THAT THE LEGISLATION NECESSARY FOR RATIFICATION THE URUGUAY ROUND PACKAGE HAD YET TO BE PASSED BY THE LEGISLATURES OF MOST MAJOR TRADING PARTNERS.

THE OF

LOOKING FORWARD TO THE ESTABLISHMENT OF THE WTO IN JANUARY

TWO 1995, MR MILLER SAID HE SAW

THREATS TO MULTILATERALISM THREAT OF WHAT HE TERMED "CREEPING RECIPROCITY", AND THE AN UNHOLY ALLIANCE OF PROTECTIONISTS WITH NON-TRADE REFORMERS.

THREAT

HE DESCRIBED CREEPING RECIPROCITY AS "THE MOST SERIOUS AND THE INSIDIOUS THREAT", REFERRING TO THE APPARENT WILLINGNESS OF THE LARGEST PLAYERS TO CONFRONT EACH OTHER OUTSIDE THE GATT AND TO CONTINUE TO RELY ON UNILATERAL MEASURES AS LEVERS TO SECURE INDIVIDUAL ADVANTAGE.

CITING EXAMPLES OF RECENT DISPUTES BETWEEN THE U.S. AND JAPAN, BETWEEN GERMANY AND BRITAIN, AND BETWEEN CANADA AND THE U.S., HE SAID: "THE PROBLEM WITH THESE AND MANY SIMILAR BI-LATERAL DISPUTES IS

THAT, WHATEVER THE RIGHTS AND WRONGS OF THE ISSUE, AND WHATEVER THE PROTESTATIONS BY EITHER PARTY THAT NEW MARKET OPPORTUNITIES WILL BE SHARED BY ALL, THE WEAKER PARTY WILL INEVITABLY

TO APPEASE THE

TRY

STONGER BY BUYING JUST A BIT MORE FROM THEM THAN OTHERS.

中中 WHEN DISPUTES ARE SETTLED BI-LATERALLY, OUTSIDE THE GATT,

'RECIPROCITY' THE UGLY ANTITHESIS OF 'MFN' ALMOST ALWAYS CREEPS IN,

+

GRADUALLY UNDERMINING THE FOUNDATIONS OF THE WHOLE STRUCTURE.'

"I

ON PROTECTIONISTS ATTEMPTING TO RIDE ON THE COAT TAILS OF LABOUR AND ENVIRONMENTAL REFORMERS, MR MILLER SAID TRADE SANCTIONS WERE OFTEN SEIZED ON AS A SEEMINGLY CONVENIENT LEVER BY ADVOCATES OF A VARIETY OF NON-TRADE REFORMS.

HE SAID HONG KONG STRONGLY SUPPORTED LABOUR RIGHTS AND ENVIRONMENTAL CONSERVATION AND PROTECTION, BUT OPPOSED ANY LINKAGE WITH TRADE SANCTIONS.

HE SAID: NO ONE WANTS TO SEEM TO BE ARGUING AGAINST ENVIRONMENTAL IMPROVEMENTS OR IMPROVEMENTS TO LABOUR CONDITIONS. HONG KONG CERTAINLY WILL NOT; WE ARE PROUD ADVOCATES OF REFORM IN BOTH AREAS. BUT NOR WILL WE BE SHY OF ARGUING AGAINST WRONG-HEADED он PERVERSE LINKAGES.

"

HE POINTED OUT THAT TRADE SANCTIONS WOULD NOT IMPROVE LABOUR CONDITIONS NOR THE ENVIRONMENT AND WARNED THAT THEY WOULD HURT MOST THOSE THEY AIMED TO HELP, BY SLOWING THE ENCONOMIC GROWTH NEEDED TO SUSTAIN DEVELOPMENT AND IMPROVE LIVING CONDITIONS.

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