TNAG-0156-FCO40-192-Export-of-textiles-to-Australia-1989 — Page 33

CONFIDENIE

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Austria

13. In this case, again, I was required to start the questioning. explained the history of the Austrian legislation, including the circumstances in which "anti- dumping" duties coul be imposed under their previous legislation and the amended legislation introduced recently. Basing "dumping" en Austrian export prices or Western European prices without attempting to find out whether the country concerned was actually dumbing, was clearly contrary to Article VI of the GATT. There was also no requirement to determine injury. The legislation post-dated the GATT, it appeared to be a discriminatery imposition related to so- called low-cost ports rather then to dumping as such and it therefore contravened the Article I rights or GATT countries against whom it was posed. Frones (U.S.) made the only other intervention on is item. He pointed out that the Austrian legislation did not accerd with either Article VI or with the Anti-Dumping Chie and hopel that Austria would ratify the Code and bring their legislation inte line a soon as vossible.

14. The Austrian delegate did not try to refute any of these allegations. He pointed out that there had been bilateral consultations between the Austrian and liong Kong Governments on the action taken under the old legislation. The Austrian Government was always ready to resume these consultations at any time if requested. The action taken was intended to deal with market disruption and the object was not to reduce trade but to stabilise prices. They had signed the Ccie subject to ratification in June 1968. However, the means of reconciling their legislation with the previsions of the Code were still under examination. To this I replied that anti-dumping procedures were not provided for in the GATT as a means of dealing with the problems referred to by the Austrian delegate. We could enly hope that Austria would bring its legislation into line with the Code as soon as possible.

15. In private conversation the Austrian delegate told me that it was hoped that they would be in a uesition to ratify the Code, perhaps early next year fellowing their general election. He repeated the point that his Government was prepared at any time to resume bilateral consultations with Hong song on thie, question and added that the legislation was really not so much aimed at Hong Kong as at Tertugal and certain Bact Suropean countries.

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