TNAG-0629-FCO40-777-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1988 — Page 111

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CONFIDENTIAL R

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The GATT Textiles Committee Meeting of July 1977

At the meeting of the Textiles Committee, of the GATT in July 1977, the EEC made a statement declaring its position on the future of the Multi Fibre Arrangement (MFA). From Hong Kong's point of view, the major elements of the EEC position were :

2.

3.

(a) intended stabilisation of the rate of penetration

of imports by comparison with 1976 levels for products with a very high rate of mirkot p neuration, Por a limited inimber, of thone products, such atabili mali on implied that the growth rate of all importu giving rise to disruption of the EIX market would in no case exceed the growth rate of consumption for each of the products concerned;

(b) more favourable treatment for small supplier countries

and newcomers to the market. This problem could be resolved, it was suggested, if supplier countries having a dominant position. in the EEC market (Hong Kong is the principal supplier) were to accept, within limits which would be defined, a "more equitable redistribution of import opportunities".

The EEC also stated that :

(a) its policy could be implemented within the framework

of the present MFA; but if this view were contested by other participating countries, the EEC would have no alternative but to seek formal changes in the actual terms of the ITA; and

(b) in any event, the important point so far as the EEC was concerned was that its stabilisation objectives be achieved by means of bilateral agreements which must all be concluded by the end of 1977. Should the bilateral negotiations not have been successfully completed by that date the EEC would be obliged to take appropriate measures to ensure the attainment of its stabilisation objectives.

The Hong Kong delegation stated in the Textiles Committee that, in seeking a mutually acceptable solution in bilateral negotiations under Article 4 of the MFA, "one must, of course, not exclude the possibility of reasonable departures from particular elements, provided the outcome is one which meets the criteria set out in Article 4 :

AGNPIRENTIAL KA KA

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