Issue
Objective/explanation
I
LO
6
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Present status/progress
China
interest*
UK
interest*
密
CONFIDENTIAL
Secretary for Trade and Industry (Cont'd)
Taiwan's
Application for
Contracting Party
Status in the GATT
Renewal of Most Favoured Nation (MFN) status for China by the US
Taiwan applied for GATT membership on 1 January
1990 on behalf of the Customs Territory of Taiwan, Penghu, Kinmen and Matsu.
Under US legislation, MFN status for certain countries, including China, is subject to the issue on an annual basis of a waiver certifying that the country concerned does not practise a restrictive emigration policy. China's MFN status expires on 3 July each year and President Bush is required to announce by 3 June each year whether he intends to renew MFN status
for China. Since June
1989, several bills have been introduced in Congress
Despite extensive lobbying by Taiwan, the issue has not been formally discussed in the GATT due to PRC's objection. The US has sounded out the views of GATT members on Taiwan's application from the legal, trade and political perspectives. The outcome of Taiwan's lobbying in Geneva in April suggests that given the political implications, GATT members will remain reluctant to take open, formal positions in the foreseeable future.
President Bush announced on 24 May 1990 his decision to extend MFN status to China for another year.
Recently, there are clear signs of a shift in
Congressional sentiments to conditional renewal for China's MFN status next year. Varies pieces of legislation have been introduced. However, any bill proposing conditional renewal would face considerable uncertainty
unless it could be processed under fast track
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CONFIDENTIAL ##
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