TNAG-1401-FCO40-1873-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 117

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stipulate that safeguard quotas be based on traditional

Moreover, while there has been a certain amount

trade.

of liberalisation and relaxation of EC quotas on

Chinese imports since 1978, there is still a fairly

long list of products subject to quota (including

matches, gloves, hats, shoes, radios and china; and

textiles, which are covered by a separate agreement).

Some goods (eg TV sets) may not be imported at all.

countries have so far been unwilling to respond

generously to China's request for increased market

access, given the sensitivity of many of the sectors of

Community industry threatened by the Chinese imports.

15.

EC

In trade policy terms, there is room for debate

about the value of quantitative restrictions (QRS).

They limit consumer access to attractively priced

goods, and limit access also for producers to cheap

semi manufactured goods for further processing (eg.

Laura Ashley's. use of Chinese grey cloth). Even

without QRS, the normal provisions of the GATT allow

for safeguard access where a sudden increase in imports

threatens serious injury to domestic producers. But

use of Article XIX selectively

i.e. against a

particular country

-

is opposed in the GATT not only by

the LDCS but also by the US; injury is not always easy

to show (anyway, until serious damage has been done);

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