TNAG-0628-FCO40-776-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 204

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(iii) Industry and workers in the Community need to have - confidence that future expansion of trade will take place under orderly conditions providing for an adequate period of adaptation (1) for Community producers. Accordingly, the Community's policy for high import penetration products is to decide on internal global import ceilings at levels which will ensure the avoidance of disruptive effects on the Community market in future. The Community's objective is to ensure that these internal global import ceilings will not be exceeded.

The Community will, in the light of this assessment, decide upon the most appropriate and equitable treatment for each supplying country having regard to the internal global import ceilings, taking account of the safeguard provisions available within the legal framework within which trade in textiles betwee the Community and the supplying country in question is carried on.

Community ceilings will be negotiated with all "significant" (2) suppliers of the high import penetration items mentioned in paragraph 2(ii) above. It will have to be made clear that the annual growth rate for dominant suppliers may have to be no more than symbolic i.e. less than 1%. No "significant" supplier can necessarily expect an annual growth rate as high as 6%, which might be as low as 1%.

The Commission will present, before the end of June, specific proposals for negotiating directives with five supplying countries as well as a draft autonomous measure concerning Taiwan. The Community should, by 1 September 1977, conclude bilateral agreements with these countries.

For all other "significant" suppliers, the Commission will. submit proposals, having regard to the internal global import ceilings, for directives to negotiate or, where bilateral agreements already exist, to re-negotiate bilateral agreements under Article 4 of the MFA to be renewed (3). In the case of

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(1) The adaptation referred to cannot of course lead to the

progressive elimination of the existing Community ir istries. (2) A "significant" supplier is defined as one whose trade

contributes to a situation of cumulative market disruption. (3) The list of countries in question which will be drawn up by

the Commission and submitted to Member States, should take due account of both the general and particular problems experienced throughout the Community as regards high import penetration of the products in question.

3/670 f/77 (COMER 136) (Annex I)