TNAG-1401-FCO40-1873-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 241

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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The Position of the Developing Countries

18

A balanced negotiation will require the effective and willing participation

of the developing world, and in particular of the newly industrialised countries.

It is here that the main hesitations about a new Round lie. The developing

countries have shown no disposition to contemplate, even in return for concessions

by the industrialised world, liberalisation of access to their markets for goods

and services. Instead they have concentrated on demanding full observance of GATT

disciplines by the industrialised countries (eg elimination of "grey area"

measures) together with further preferential treatment within the trading system

for themselves.

19 At the GATT Contracting Parties session in Geneva in November 1984, the

developing countries took the line that, if a new Round were embarked upon, its

basic objective should be "significant enlargement of access for developing countries'

exports to the markets of developed countries". They also rejected the idea of

including services. While such rigid pre-conditions are insisted upon, a productive

new Round looks unlikely. But informal contacts continue in Geneva in the hope

that the developing countries can be moved towards a more open-minded position.

In a genuine process of give and take, the developing countries could aim for

progress on items of interest to themselves: improved criteria for safeguard action

under GATT (which would imply an end to the "grey area"), liberalisation of trade

in agricultural products, an end to formal quantitative restrictions still

maintained by some developed countries and better market access for textiles.

The UK recognises that the developed world would need to consider concessions on

these lines as part of a balanced package.

20

One of the traditional strengths of the GATT has been its relative freedom

Regrettably the tendency of

from rhetorical confrontation on North/South lines.

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