China and the European Common Market have singed a five-year trade agreement; only the second formal commercial accord between the 9 nation community and a communist state.
China and the European Common Market have singed a five-year trade agreement; only the second formal commercial accord between the 9 nation community and a communist state. The accord links the world's largest trading block with it most populous nation and replaces bilateral agreements which expired at the end of 1974. EEC negotiator, Sir Roy Denman described the occasion as one of "profound political significance."
SYNOPSIS: the 7-man delegation was led Mr. Sun So-Chang, the head of China's West Europe Department. For the EEC, Sir Roy Denman led the week long discussions. Sir Roy later told newsmen China had agreed to give "favourable consideration" to imports from the european community. In return it's understood that the EEC intends to liberalise terms of access for chinese goods and has formally awarded China a "most favoured status" The only other communist country with which the EEC has such an agreement is Yugoslavia. Officials said the community had wrung two important concessions: a safeguard clause providing for "friendly consultations" should a particular chinese import cause problems and an undertaking that China would not alter prices in an attempt not undercut the EEC.
According to the latest EEC figures, China had a trade surplus of (US) 104-million dollars with the EEC in the first 9 months of 1977-compared with a 390-million dollar deficit for 1976.