TNAG-1401-FCO40-1873-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 238

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What does the UK want from a new GATT Round?

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14 The basic UK objective is to maintain the pivotal role of the GATT in the

multilateral trading system. If the GATT is to survive, it needs to go forward

and to demonstrate its continuing ability to deal with practical problems in a

non-political way. A new GATT Round including all issues of major concern in

trade policy is the best way of doing this: the UK is thus very much in favour

subject to proper preparation, agreement on the right agenda and

of such a Round

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full participation by all (or at least most) GATT members.

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Details of the UK approach to a new round are still under consideration, and

serious discussion in the Community has not begun. But UK objectives can be

expected to include the following elements:

(a) We want agreement to the liberalisation of international

trade in services. GATT disciplines currently apply only to trade

in goods. An extension of GATT's remit to include services would

require the specific agreement of the GATT membership. If GATT is to

embrace all significant aspects of world trade, such an extension is

essential. (Trade in services is now equivalent to more than 20% of

world trade in goods: UK exports of services amount to about 30% of

the value of UK visible exports). But, for the present, the GATT

continues to have no formal locus in this area. Some developing

countries might well prefer to see services addressed only in UNCTAD

(where the tradition of special treatment for developing countries is

well-established). Agreement was reached at the meeting of GATT

Contracting Parties in November 1984 on a programme which will permit

some factual and analytical work supported by the GATT Secretariat.

But progress towards the creation of GATT rules for services in the

context of a new Round may not be easy.

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