TNAG-0628-FCO40-776-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 118

2.

1.

......ANDA I

Approach proposed by the Commission for dealing with the problem of cumulative market disruption

(i)

(ii)

(i)

In the case of imports of those textile products which have a particularly high level of penetration in Community markets (including regional markets) the major objective, shared by the Commission and all Member States, consists of effecting a stabilization, throughout the life of a renewed MFA, of import penetration rates of the aggregate of dis- ruptive imports, by reference to their 1976 penetration rates, so that the Community producers can expect a reasonable share of the market. It is therefore necessary to secure an adequate period of adaptation for Community industry which, because of high import penetration, entails an adequate guarantee that the rate of growth of total imports of sensitive items can be sharply reduced. This sharp reduction will mean for certain products that the overall growth of imports from disruptive sources must be no more than symbolic. Stabilization measures must provide both speedy and certain protection against further disruptive growth of imports and reasonable access for newcomers, while taking account of the situation of established suppliers.

As already agreed upon in principle in the Council's Working Group, for a very limited number of these high import penetration products this stabilization implies that the rate of growth of all imports which contribute to market disruption in the Community cannot exceed the rate of growth of consump- tion. For the other high import penetration products, a slight increase of a few points in the rate of import penetration can nevertheless be allowed over the life of the renewed MFA.

The Commission will ensure that any renewed MFA is com- patible with the Community's intentions as described herein.

The Commission, in full and permanent co-operation with Member States, will institute immediately and prior to the bilateral negotiations a global assessment of imports of products with a high penetration of Community markets (including regional markets) from all supplying countries, whether these are parties to the MFA or not. As a result of this global assessment, internal global ceilings will be fixed and shared out among supplying countries, while making provision within these internal global ceilings for new suppliers whose exports do not yet call for restraint.

S/1008 e/77 (COMER 195) 1by/HM/im

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