0003230
G.F, 323
CONFIDENTIAL
Ref. CR/EIC. 191/5
[16 JUL 1969
TEXTAB Inf/5/69
App.I(A),
B&C
MEMORANDUM FOR THE TEXTILES ADVISORY BOARD
Exports of Textiles to Canada:
Canadian Restraint Agreements with Third Countries
(C.A.B. Memoranda 430 and 439 reported on
Canada' s restraint agreements with
South Korea,..Taiwan and Japan vis-a-vis
those with Hong Kong. This memorandum
brings up to date the above papers and
is an appraisal of the latest agreements
concluded between Canada and Hong Kong,
Taiwan, Singapore, Malaysia, Japan and
South Korea, and draws attention to
differences in the terms between the
Hong Kong/Canada agreements and
Canada's other agreements with
Hong Kong's main competitors.)
Introduction
Hong Kong has two restraint agreements with Canada under the Cotton Textiles Arrangement: one for cotton garments and towels under Article 3. (Appendix. I(A)) and the other for cotton piecegoods under Article 4 (Appendix I(B)). Both agreements relate to items of chief weight cotton in accordance with the definition of cotton textiles in Article 9 of the C.T.A. In addition, Hong Kong has given an unilateral under- taking (Appendix I(C)) to restrain exports of polyester and polyester/cotton shirts, blouses and trousers outside the terms of the C.T.A.
2.
Canada has also concluded textile restraint agreements with Taiwan, Singapore, Malaysia, Japan and App.II,III South Korea. The texts of the agreements with Taiwan, III(1),IV Singapore, Malaysia, Japan and South Korea are at
Appendices II, III, III(1), IV and V respectively.
& V
3.
Canada's agreement with Taiwan which covers both cotton and synthetic garments was notified to the G.A.T.T. as being pursuant to Article 3 and 6(b) of the C.T.A. The latter Article is designed to prevent circumvention of the C.T.A. by the deliberate substitution for cotton of directly competitive fibres; but in our opinion this Article may only be invoked if it can be shown that such substitution has taken place solely in order to circumvent the provisions of the Arrangement.
/It cannot
CONFIDENTIAL