TNAG-0628-FCO40-776-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 105

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C. Hypotheses as to the growth of Community consumption: option

of revision

Several delegations considered that, in the context of the bilateral agreements, it should be possible, during the 5 year term of validity of the renewed Multifibre Arrangement, to revise either upwards or downwards the rather questionable hypotheses concerning the growth of Community consumption. Other delegations disagreed with this view, pointing out that in practice it might prove extremely difficult to make a downward revision of the ceilings agreed on in the bilateral agreements.

The following compromise formula was suggested at the end of the discussion and received a fairly general consensus:

at the time of negotiation of each bilateral agreement, the Community would offer the other party to the agreement a choice between ceilings fixed in advance (without any possibility of revision) for each of the 5 years of the agreement's validity, on the basis of the current hypotheses on the evolution of Community consumption, and the inclusion of a revision clause in the bilateral agreement:

this revision clause would take the form of a provision in each bilateral agreement that, after the agreement had been in force for 30 months, the parties would have the option to hold consultations to decide jointly whether there were grounds for raising or lowering the voluntary restraint ceilings in the light of the actual evolution of Community consumption.

S/1114-e/77 (COMER 215) ain/PB/hmcg

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