less than if the
is refaired.
or marginally the same as for a retained quota system
We are in effect replacing one method of protection
with another.
5.
The proposed rates of duty are about 61% for yarn 15% for cloth, and 17% for garments. These rates
not fad out.
line with those of the EEC and most
are bread
other developed countries.
6
We intend to abolish the quota system when the tariff is introduced but you will note the President's
reservation of the right to reimpose quotas on
particular products from individual countries only
if the level of imports of cotton textiles overall
increases above present levels causing disruption in
our market in these products.
7. As you are aware, the UK quota system has been
strongly criticised by many of the developing countries, including a number of countries in the Commonwealth preference area, mainly because it
discriminates against countries which had not fully established themselves in the market in 1962-64, the
base period for the quotas. The pattern of categorisation is also becoming increasingly out of date. Moreover the textile cycle is expected to
turn downwards in 1970, a year in which it would have
been extraordinarily difficult for HMG to have let
things go on as they are. It is in this context
that your attention is invited to the assurance of
the President of the Board of Trade that we are not setting a precedent for tariffs on other Commonwealth products: cotton textiles are, by international
consent, a special case.
Plse issue.
L.. Cart
21/7/69
v. S.
(11516) Dd.392077 300m 10/68 G.W.B.Ltd. Gp.863
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