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Our cotton textile imports come from about one hundred countries. Imports from the developing countries have increased significantly. While the share of the U.S. market held by the major suppliers has changed, their absolute exports to the United States have increased substantially. Many new suppliers have entered the United States market and have been able to sell in the market without jeopardizing the position of other suppliers. In the process of providing access for new suppliers to our market, the United States has consistently met the fundamental equity obligation stipulated in Article 6(c) of the Arrangement. All of these developments are consistent with the provisions and the spirit of the LTA itself.
Overshipments
A Recurrent Problem:
Imports at these high levels have produced a number of problems. The most difficult and frustrating of these arises when agreement limits are overshipped. The United States has pointed out at previous meetings of this Committee a number of the difficulties it has had in the implementation of various bilateral cotton textile agreements. We noted that while many of these situations are inadvertent, not all of them can be so explained. We have worked with a number ɗ countries to assist them in their efforts to improve their administration of the bilateral arrangements and, in the current year, we have noted some decline in the number of administrative and overshipment problems.
area.
A more timely exchange of better statistical information on trade would contribute to better operation of these arrangements, and we hope governments will continue to improve upon their efforts in this
We cannot prevent problems if necessary information is not available on a timely basis. There have been some difficult cases requiring action by the United States and the exporting countries which unavoidably resulted in some interference with the normal flow of trade. The United States regrets very much the necessity of taking these actions but believes that the viability of this Arrangement and of all bilateral agreements thereunder depends upon mutual adherence to their terms. We would emphasize again that it is the joint obliga- tion of exporting and importing countries under the LTA to make these Agreements work.
Future of the Long-Term Arrangement:
The United States, in giving very careful thought to the future of the LTA, has had to consider criticism of the LTA voiced by American producers and labor organizations and also by many in the U.S. Congress. They have pointed out that while the Arrangement contemplates a rate of growth of imports equivalent to 5% annually, the actual growth of imports into the United States has been much higher. In addition we have been forced to acknowledge the fundamental conflict between the 5% growth formula in the LTA, and a much higher actual growth of
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