TNAG-0627-FCO40-775-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 3

4. Actions taken under this. Arrangement shall not interrupt or discourage the autonomous industrial adjustment processes of participating countries. Further- moro, actions taken under this Arrangemont should be "ccompanied by the pursuit of appropriate economic chi social policies, in a nner consistent with national lavs and systems, required by cirung in the pattern of trade in textiles and in the comparative advantage of purulcipating countries, which palleies would encourage businesses which are less competitive internationally to move progressively into more viable lints of production or into other sectors of the economy and provido increased access to their markats for texllle producía from developing · countries.

5.

The application of safeguard masura under this Arrenganant, subject to recognized conditions and criteria and under the surveillance of an international body set up for that purpose, and ia conformity with the principles and objectiveg of this Arrangement, may in exceptional circumstances become necessary in the field of trade in textile products, and should assist any process of adjustment which would be required by the changes in the pattern of world trado in textile products. The partics to this Arrangement undertake not to apply such nocsures except in accordance with the provisions of this Arrangement with fill regard to the impact of such measures on other parties.

6.

The provisions of this Arrangement shall not affect the rights and obligations of the participating countries under the GATT.

7.

The participating countries recognize that, since measures taken under this Arrangement aro intended to deal with the special problems of toxtile products, such measures should be considered as exception, and not lending thassolves to application in other fields.

Article 2

1. All existing wilatoral quantitative restrictions, bilateral agremonts and any other quantitativo nuasures in force which have a restrictive effect shall be notified in detail by the restraining participating country, upon acceptance of or accession to this Arrangement, to the Tezulos Surveillance Body, which shall circulate the notifications to the other participating countries for their information. ileasures or agrocents which are not notified by a participating country within sixty days of its cosptance of, or accession to, this arrangement shall be considered to be contrary to this Arrangement and shall be torinted forthwith.