DRAFT P.C.0. PAPER
Protection against imports of textiles from
the developing countries
This paper is concerned with what our attitude should be towards the increasing demand domestically and internationally for the protection of the textile industry (including clothing) against low-priced competition. It recommends positive action international to encourage a return to liberal trading policies in the textile field by proposing the dismantlement of quotas on cotton textiles and by placing more reliance on Article XIX of the G.A.T.I. (and less on voluntary restrictions) to deal with cases where imports are causing or threatening serious injury to the domestic industry.
Background
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2. The commercial policy of the United Kingdom has long been based on the view, which is enshrined in the G.A.T.1 that tariffs are to be preferred to quotas as a means of protection against imports; but the U.K. and oth developed countries (i) refused to extend their liberalisation measure to Japan when she acceded to the G.A.T.T. and (ii) invoked the Long Term Arrangement to impose restrictions on imports of cotton textiles from the developing countries.
3. The U.K. Government have now decided (1) to remove the restrictions on imports of textiles from Japan in the period 1972-75 subject to reciprocity and (ii) to substitute a tariff on imports of cotton textiles from the Commonwealth in place of the existing quota system. The Government have also offered to abolish the tariff on imports of non-cotton textiles from the developing countries, including Hong Kong and Portugal, provided other countries do likewise.
4. Other developed countries have been moving in the opposite direction. Most of them restrict imports from
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