TNAG-1401-FCO40-1873-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 234

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instance in the US)

and, among the industrialised countries, Australia and

New Zealand retain relatively high tariffs on industrialised products. The

position of these two countries reflects their dissatisfaction with the degree

of trade liberalisation achieved on the agricultural items in which they have

a major export interest. GATT disciplines for agricultural products are a good

deal weaker than those for manufactures.

5 Attention has now tended to turn away from tariffs to trade-distorting non-

tariff barriers. A start in this direction was made during the Tokyo Round

which produced a series of Codes (see Annex A) on specific non-tariff problems such

as Government Procurement and Subsidies. Trade Policy discussion has also

widened in recent years to cover widespread concern about such issues as sovereign debt,

and exchange rate fluctuations. A new round will reflect this.

Current Issues

Developing Countries

6 GATT membership (a full list at Annex B) includes most developing countries

including the newly industrialised countries (NIC's) whose products (including

high technology products) are now making significant inroads into developed country

markets. There is no agreed definition of a NIC. The NIC's in GATT are generally

understood to include S Korea, Singapore, India, Hong Kong, Malaysia, Indonesia,

Brazil, Uruguay, Argentina and Chile. But the GATT does not include all the

developing countries who make up the Group of 77 (G77) in UNCTAD: notable

absentees include Venezuela, Algeria, Mexico and Saudi Arabia. Developing country

members are freed by the provisions of Part IV of the GATT from the normal

obligations to reciprocate the concessions from which they benefit. Since the

GATT operates on the basis of the most favoured nation principle, a concession

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