TNAG-1401-FCO40-1873-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 123

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surge of imports from China while EC exporters

remained limited in their ability to compete in

But China has MFN status

the Chinese market.

already under the EC-China Agreement, and it is

probably not realistic to seek GATT terms less

favourable than present rules. However the EC

could apply Article XXXV to secure this exception

if China acceded on otherwise unsatisfactory

terms.

(b)

Quantitative Restrictions:

Under the present State Trading protocols of

accession to GATT, the UK may not impose new QRS

on say, Poland, and may not increase the level of

discrimination represented by existing QRs. In

practice the latter provision has been loosely

applied. The UK could seek a provision in China's

protocol which permitted additional QRS,

if

necessary without prior consultation. This would

amount to a special safeguard clause,

uncompensated, selective and without test of

injury.

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