TNAG-0142-FCO40-178-Long-term-policy-on-International-trade-in-textiles-1969 — Page 206

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injury to domestic producers of like or competitive products. The suspension, withdrawal or modification is permitted "to the extent and for such time as may be necessary to prevent or remedy the injury", and the suspension, withdrawal or modification must be non-discriminatory in form if not in effect. Country invoking the escape clause must also consult the other contracting parties affected with a view to reaching either before or, where, in critical circumstances, delay would cause damage which it would be difficult to repair immediately after taking action. In these consultations countries having a substantial interest in the concession that is being suspended, withdrawn or modified may in practice request substantially equivalent compensatory concessions from the country taking the initial action and if agreement is not reached the countries requesting compensation may in turn suspend, withdraw or modify substantially equivalent concessions'.

27.

It has been argued on the one hand that

Article XIX is so tightly drawn that it no longer

corresponds to the policies and needs of its members, and on the other hand that it is either too weak or too dangerous an instrument to use because:

a) it is too vague on what constitutes serious injury: boUTUSO

b) a bad example set by one country could be quickly followed by others;

c) it would be a radical departure from the G.A.T.T. for a number of countries to invoke Article XIX more or less simultaneously;

a) the practice which has grown up of offering substantially equivalent compensation in cases where tariff or quota restrictions have been imposed under Article XIX would nullify the advantage to the balance of payments which would result from the imposition of restrictions; e) an almost impossibly complex situation would arise if almost all developed countries imposed restrictions simultaneously on imports from the developing countries and entered into negotiations for compensating the affected rentices