TNAG-0628-FCO40-776-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 200

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5.

NB: Comments made or clarification provided at that meeting which may facilitate assessment of the document are set out in Annex II to this note..

The only major problem outstanding in connection with this

new version of the Commission working document concerned the definition to be adopted for the concept of stabilization (see Annex I hereto, section B, paragraph 1 (i)).

In this connection it should be noted that all delegation and the Commission were able to agree that, in cases of cumulative market disruption, the Community's objective should be to stabilize the penetration levels of all imports responsible for the disruption in question. There were however two theories

as to the scope of such stabilization:

most delegations considered it necessary in such cases to

achieve stabilization at the import penetration levels already reached: these delegations felt that an approach of this nature could not be regarded as a freezing of imports, since it involved an element of dynamism inasmuch as it allowed imports to increase if there was a positive development in consumption on the Community market;

the Commission and the German and Danish delegations supported a less rigid definition of stabilization; these delegations felt in particular that the definition of stabilization advocated by the other delegations:

would lead, if brought to its logical conclusion, to reductions in imports if consumption on the Community market were to fall;

S/670 e/77 (COLIER 136) lby/SMS/mmk

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