TNAG-0628-FCO40-776-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 121

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12.

13.

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(ii)

(iii)

If it should appear before that date that the results of the negotiations with the main supplying countries, or the results that can be expected from the use of the Arrangement's safeguard clause, would not enable the global internal ceiling to be respected for one or more projects, having regard to the development of trade allowed for in respect wi non-MFA countries, particularly those with which the Community has special agreements, then the Community will have recourse, for that or those products, to the appropriate safeguard clauses, including that of the General Agreement (Article XIX).

Further, if in the course of renewed MFA's life it appears that the Community's objectives of stabilization are not respected, the Community will take the necessary safeguard measures.

Finally, to complement the programme set out above, the Commission will prepare a comprehensive system of surveillance for products found at any time to be sensitive (see paragraph 2). In this way trends in imports will be followed more efficiently than has been the case in the past, and thus more timely action, appropriate to the particular case of each supplying country as it appears on Community markets, may be taken when necessary. The Community's intention is that as soon as the comprehensive system of surveillance shows that imports from any new supplier cause or threaten to aggravate a situation of market disruption within the Community ('), for any of the sensitive products, the Community will immediately initiate negotiations or consultations with the supplying countries. It should be made clear that any restraint which may be called for should become effective within three months.

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It is understood that the level of imports of these products from each supplying country will be established in accordance with the principles contained in S/399/77 (COMER 76).

It is also understood that the necessary adjustments will be made to the Nimcxe, to be effective 1 January 1978, so as to enable surveillance and control to be exercised effectively, in respect of the categories chosen as requiring separate identification in order to implement these arrangements.

Where the problem is confined to a region of the Community, a regional solution may be considered.

$/1008 e/77 (COMER 195) (ANNEX I) lby/HM/jvdb