TNAG-1491-FCO40-2049-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 94

HUNGARY

GATT:

со

Hungary's participation in the GATT is governed by the

1973 Protocol of Accession [BISD 20S/3

Entry into Force

9 September 1973]. A major element of the protocol provides that Hungary has commited itself to ensuring that existing trade agreements with other East Bloc/Communist countries will not adversely impact the interests of GATT contracting parties. In cases where this commitment is not abided by, the protocol envisages that other GATT members, following consultations, may suspend concessions with respect to Hungary.

Like the Polish protocol, the Hungarian protocol also provides for selective action against increased imports from Hungary which threaten or injure domestic industries. Such restrictive action can be taken after consultations or in critical circumstances, without prior consultations. The protocol provides for a biennial review of Hungary's trade relations with GATT contracting parties.

The United States has no GATT relations with Hungary, the U.S. having invoked Article XXXV of the GATT (Non-application) at the time of Hungary's accession.