APPENDIX B
A:
DS UC
Recent cases of trade discrimination against Javeloped
coni.
Mexico-France
In July 1981 the French oil company CFP declined to exercise its contractual right to lift Mexican oil following a Mexican decision to raise prices against the market trend.
In response, Mexico cancelled her oil supply agreement with
France and announced that French firms would be excluded
from public sector contracts.
2. Given that the Mitterrand government had earmarked
Mexico as one of three Third World countries with which it
intended to seek a special relationship, the Mexican
choice of target country was judicious. The French
capitulated after Mexico made its threat: this was made easier
for them when other market pressures forced the Pexicans
to rescind their price rise by half. The French then had to
put considerable political effort into repairing the damage
which they have now more or less achieved.
China-Netherlands
3. In November 1980 the Netherlands Government announced shat
it would licence the export to Taiwan of two submarines.
The Chinese reacted strongly, particularly as the questi 4.
had not beer raised by the then Duch Prime Mini.ter, Dries
Van Agt, when he visited Poking the previous monen.
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