TNAG-0628-FCO40-776-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 208

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(a) Countries with which negotiations could be envisaged:

It should be noted that, in addition to the "significant" countries referred to in paragraphs 4 and 6 of the Annex hereto, the Working Party was unanimous in its view that it should be possible also to envisage negotiations under Article 4 of the MFA with third countries which could not yet be regarded as "significant" but which, according to the available information, particularly as regards investments made, might well become such in the relatively near future.

(e) Treatment to be applied to dominant countries for certain extremely sensitive products: The Commission representative stated that there was no incompatibility between paragraphs 4 and 8 of the Commission approach. The reduction of export possibilities referred to in paragraph 8 only applied for determining the basic quotas to be negotiated for these products for the first year of the implementation of the new agreements. The growth rates mentioned in paragraph 4 of this approach would be applied on the basis of the quotas thus negotiated.

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(f) Reciprocal concessions: With reference to that part of paragraph 8 of the Annex which suggested possible reciprocal concessions to be offered to third countries to encourage them to reduce their export potential for certain extremely sensitive products, the

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United Kingdom delegation pointed out that, as far as flexibility was concerned the provisions of the bilateral agreements concluded in the past by the Community were, in its opinion, in certain cases already too favourable to the supplier countries in question.

S/670 e/77 (COMER 136) (ANNEX II) ood/SMS/mo*h

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