Nov 8, 1984
CHINA GIVEN OBSERVER STATUS IN GATT.
GENEVA, NOVEMBER 6 (IFDA) -- The Peoples Republic of China was granted Tuesday observer status in GATT and its bodies.-While the GATT Council acted by consensus on this, the actual legal position of China was still a matter of dispute.- China was one of the original signatories of GATT in 1947. But in 1950, the "Republic of China" or Taiwan, which then occupied the seat, withdrew from GATT - a withdrawal that the Peoples Republic of China has not accepted as legal.- In making its application, the Chinese did not specifically speak about "observer status", but asked for the right to attend GATT meetings, and its intention to consult and coordinate with Contracting Parties, and that this would facilitate a decision by the Peoples Republic of China on the membership in gatt. The Chinese letter had made clear that it was without prejudice to its legal stand.- While everyone welcomed the grant of observer status to China, United States would appear to have specifically reserved the U.S. legal position with regard to China.- If the Chinese legal position were to be accepted, in order to acquire full GATT rights, it would not have to negotiate with individual countries on exchange of concessions - a necessary pre-requisite for new members before their protocol of accession would be accepted.- But it was clear that none of the present GATT members would accept this - since in effect it would enable China to get all the benefits of over three decades of mutual concessions by others in trade liberalisation, without China itself having to do anything.-