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DRAFT PCO PAPER
Steering Brief for GATT Cotton Textiles
Committee
Background
A meeting of the GATT Cotton Textiles Committee (CTC) has been fixed to take place in acueva from 8th to 10th
October. This will be the first of a series of meetings
which will have as their main task a decicion on the future of the GATT Cotton Textiles Arrangement (CTA) which will expire, unless renewed, on 30th September 1970 (a note on the CTA is attached as Annex 1). It is therefore necessary
to decide on the instructions which are to be given to the
U.K. delegation at this meeting.
2. It is quite likely that the Americans will at this meeting suggest the extension of the CTA to cover non-cotton textiles though this depends on various factors (see paragraph 16 below).
3.
This paper is principally concerned with the question what our attitude should be to the prolongation of the Cotton Textiles Arrangement. This entails some consideration of non-cotton textiles and of the question of escape clauses.
The Ideal Solution
T. On the assumption that our textile industry will prove to be internationally competitive in the lines on which it chooses to concentrate, the solution which would suit us best would be that, in accordance with the basic principle of GATT, textile industries in all developed countries should be protected if at all by the tariff only. Pressure from the exports of low-cost producers would then be fairly evenly spread among the markets of developed countries, thus pro- viding our industry with some relief in its domestic market.
The following paragraphs examine the extent to which this objective can be achieved, or alternatively may have to be modified, in dealing with the present circumstances.
U.K. Interests in the present situation
5. The Textile Council Report included in its conclusions a statement that the U.K. industry should be viable by the mid 70's subject only to "the U.K. participating in any international schemes there may be for the regulation of
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