0003230
G.. 323
CONFIDENTIAL
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Encl.1 Section B C.T.A. Article 3 Cotton Towels Agreement (Enclosure 1)
Statistical Position
20.
Hong Kong's overall share of the Canadian import market for cotton towels has been steadily rising (by quantity) from 12% in 1966 to 26% in 1967 and 35% in 1968. Hong Kong has, in the last three years, made considerable inroads into the market share traditionally held by the U.S.A. whose share has dropped from 42% in 1966 to 27% in 1967 and 23% in 1968. There are no other significant suppliers. Total Canadian imports of cotton towels registered substantial increases between 1966 and 1967, from 2.56 million pounds to 4.51 million pounds, an increase of 76%, but the intake has levelled off in 1968 reaching a total of 4.1 million pounds, a decline of some 5.3% over 1967.
21.
Canadian import statistics do not report separately the five categories of towels under restraint. Based on Hong Kong's licensing records, the shipment position in respect of each of the five categories is as follows:
Total Shipment plus Unshipped
Commitments
Consultation Levels
Quantities notified to the Canadian authorities and awaiting approval
*
(a) Terry towels, jacquard
249,370 lb.
250,000 lb.
(b) Terry towels,
non- -jacquard 234,941
500,000
11
(c) Cabinet
towels
169,998
170,000
(a) Industrial
wiper towels 199,195
事
200,000
(e) Other towels 224,325
11
230,000
#
34,322 lb.
9,000
18,599
11
Problems arising from the Cotton Towels Agreement
22.
Cotton towels are the subject of a one year Article 3 agreement covering the textile year 1st October, 1968 to 30th September, 1969. The export limit for cotton towels of all kinds is 1,350,000 pounds. Within this limit, the following consultation levels were established:
(a) Terry towels, jacquard
250,000 lb.
(b) Terry towels, non-jacquard
500,000 lb.
(c) Cabinet towels
170,000 lb.
(d)
Industrial wiper towels
200,000 lb.
(e) Other towels
230,000 lb.
23.
Consultation levels, as opposed to specific limits, were secured in an attempt to obtain greater flexibility in the utilisation of the towels quota. The Canadian authorities have the right to request consultations with a view to possibly fixing a specific 'limit for the "triggered" category when a consultation level is reached.
/24.
CONFIDENTIAL