TNAG-1494-FCO40-2052-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 17

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PORT MORESBY, HONIARA, HONG KONG, BRAZZAVILLE, MANAGUA,

CASTRES, NUKU'ALOFA, REYKJAVIK, LIBREVILLE, KINGSTOWN

ST JOHN'S, TARAWA, VICTORIA

FCO GUIDANCE TELNO 079: NEW GATT ROUND

COMMENTARY ON GATT MINISTERIAL DECLARATION

STANDSTILL AND ROLLBACK

1. Participants undertake to abstain from trade

restrictive measures inconsistent with GATT during the

course of the negotiations, and to roll back any such

measures currently in force. GATT will monitor

implementation, and those concerned will consult to

ensure that each bears a fair share of the overall

burden. Developing countries attach much importance to

this provision, and intend that it should be

interpreted to cover the so-called "grey area", notably

voluntary export restraints. But as USTR Yeutter made

clear at the conclusion of the Ministerial, the

undertakings do not of themselves clarify the GATT

status of the grey area, the legality of which has long

been a moot point. Those seeking the removal of grey

area measures will still have to demonstrate that they

are inconsistent with GATT.

M29AAX(6)

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DEVELOPING