TNAG-0629-FCO40-777-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1988 — Page 30

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

DSR 11C

BACKGROUND

The Commission's Approach

8. Following the check in the negotiations for the renewal

of the multifibre arrangement in Geneva in July it was

agreed within the Community that work should now concentrate

on the rapid conclusion of bilateral agreements between the

Community and its main supplying countries. It has been

agreed that the Community will take a decision on whether

or not to resign a renewed MFA only when it has judged

the results of these bilateral negotiations. The Commission

have now produced a programme of action for the bilateral

negotiations, which is remarkable for its rationality and

comprehensivity.

9. The Commission's approach is based on the concept of the conclusion of bilateral agreements with all the Community's

suppliers. These agreements will cover all textile products.

Individual textile agreements will be concluded with the 30

main supliers. The rest will be lumped together and given a basket quota, with inner steps specifying that no one supplier

may take more than a certain percentage of the basket quota.

In a similar fashion, the textile products concerned will be

divided into four groups according to their degree of

sensitivity for the Community. Global limits applying to

all low cost suppliers will be set for each group. Growth

rates will be minimal for the most sensitive group of products

and will be above 6% for the least sensitive group. The

base levels which will be offered tothe suppliers will be in

accordance with the Community's agreed aim of stabilisation

of import penetration at 1976 levels. In order to leave

room for newcomers and small suppliers, and also to avoid cutting

back below 1976 levels for the poorest developing countries,

/ cuts

D 107991 400,000 7/76 904 953

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