Escape Clauses and the Multi-Fibre Agreement

Abstract

Those responsible for the liberalisation of international trade, which has made impressive progress since World War II, were well aware of the necessity of establishing an equilibrium between two contradictory constraints. On the one hand, in order to take full advantage of the liberalisation measures, the competitive producer had to have a reasonable guarantee that the possible abrogation of the liberalisation measures from which they were benefiting would not condemn, prior to depreciation, the investments which they were undertaking in order to increase their exports. This view placed emphasis on making the liberalisation procedures as irreversible as possible. On the other hand, if governments are aware that all commitment to liberalisation on their part is irrevocable, then they will show themselves to be exceedingly cautious in granting tariff concessions. The compromise between these two positions consisted in providing the liberalisation rules with escape clauses. These clauses, however, should be temporary and should not alter the nature of the fundamental rules of trade liberalisation.