TNAG-0762-FCO40-966-Effect-of-GATT-Multi-Fibre-Arrangement-(MFA)-on-Hong-Kong-ex-1978 — Page 10

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The difficulty here is that Congress are likely to resist a change in US

law unless other countries accept rules on subsidies. The former Administration

formulated rules therefore designed to this end and the Community in turn agreed

to somewhat strengthened GATT provisions on subsidies, while resisting the

argument that the provision of domestic subsidies should be restrained and

export subsidies for agricultural products be prohibited. There has so far

been little meeting of minds, but there is at least some understanding of the

problem.

19 The second of the sub groups where some progress has been made is standards.

While the details have not been finalised, the outlines of a standards code have

been agreed which would be designed to ensure that new standards are not

introduced for protective reasons. The Community will have to weigh carefully

the effects of giving up its right to maintain or introduce standards discrimina-

ting against non-Community countries against the export advantages which would

accrue if the code goes through. A critical element here will be whether the

code applies at state and municipal level in the USA and certain other countries.

20 There has been little real progress in the other NTM groups.

In the case

of that concerned with Customs matters our objective will be to secure if we

can some order in the US (and Canadian) system of valuation. We shall also try

and persuade the US to bring their anti-dumping provisions more clearly into line

with the GATT.

21 On other matters

quantitative restrictions and public procurement the

Community's objectives are rather more defensive.

SAFEGUARDS

22 On safeguards there has been little progress so far. The difficulty here

is that, while we would like the GATT procedures to allow us to act against

imports causing or threatening serious injury to our own domestic producers, we

do not want it to be too easy for other countries to take action against our own

exports. The USA has suggested that, if it meets certain criteria, safeguard

action should no longer be subject to retaliation, and that there should be

international rules for (and supervision of) time limits, adjustment assistance

We should like the procedures revised so that we can take action against

etc.

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