TNAG-0629-FCO40-777-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1988 — Page 152

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unfavourable attitude of developed countries, the present time did not appear suitable for the purpose. They might, however, reserve their rights to make their own proposals if developed countries actually took the action of proposing unacceptable amendments to the existing Arrangement in the direction of making its provisions more restrictive. while allowing the existing MFA to continue, developing countries should press for its adequate implementation keeping in view both the spirit and the letter. One representative suggested that apart from consultations among developing countries, there could be consultations among Commonwealth countries, developed as well as developing, where the point of view of each group of countries could be better understood. Commonwealth consultations in the past on this basis had proved worthwhile, and this could be extended also to textiles. The same participant added that the forthcoming Commonwealth Heads of Government meeting in London should provide an opportunity for raising this subject of MFA.

31. In relation to the last item on the agenda, "Considera- tion of ways in which textile products including items covered by the Arrangement may be dealt with in the MTN", the representative of UNDP/MTN Project of ESCAP, Mr. Narasimhan, introduced the paper (circulated at the Seminar) entitled "MFA and the MTN". He referred to aspects of liberalisation not dealt with in the MFA, especially in the tariff field, which had necessarily to be dealt with in the MTN. He pointed out that it was generally recognised that tariffs were important trade barriers although they had been relegated to the position of secondary importance in the Current MTN. An examination of the level of tariffs of 31 four digit BTN tariff lines in four industrial markets showed that whereas tariffs on textile products ranged from 12.7 (in Japan) to 25 percent (in USA) ad valorem, those on other industrial products varied only from 8.1 (in EEC) to 14.1 (in Canada). Thus textiles were the target particularly for high tariffs. The valuation for customs purposes also played a role in inhibiting imports. Thus the MTN must be called upon to deal with possible disruption or other effects on the exporting developing countries and restrictions to access in ways other than those specifically brought under the MFA. The Sector Approach in the MTN might be one particular way of dealing with textiles under the current trade negotiations.

32. In the course of the discussions on this topic, it was felt by some participants that while the question of tariffs would no doubt have to be dealt with under the MTN, the emphasis in the current dialogue might well be on securing the interests of developing countries under the MFA especially since the latter covered non-GATT and non-MTN participating members also. The subject, however, was regarded as suitable for future discussions when MTN would be the main topic in any future seminar.

33. At the closing session of the Seminar, the Chairman, is giving a resumé of the discussions, expressed his deep

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