CONFIDERAILL
Other countries' auctas
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8. Host other industrial countries impose quantitative
restrictions on some imports of cotton textiles from some countries
in accordance with the CATT Long Term Arrangement. The T.S.A.
restricts imports of most types of cotton textiles from a wide
range of developing countries. The effect has been to limit
Canada,
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imports to about 10 per cent of domestic consumption.
which has the advantage of a relatively high tariff on yarn and cloth, imposes restrictions mainly on garments. Imports from the
developing countries into the Community amount to no more than
8 per cent of domestic consumption.
On the other hand restrictions
apply to only a handful of countries and even then a number of important items, such as yarn, shoots and many articles of clothing,
are not subject to control in at least one of the importing
countries. The Scandinavian countries do not, as a rule, restrict
imports of yarn and cloth, which they apparently regard as raw
material, but recently they have begun to impose restrictions on
imports of garments from a number of low-cost suppliers.
The problem and its solution
9. The question which has to be decided is whether the industry
is to be given continued protection over and above the existing
tariff when the present arrangements end; and, if so, what form
that continued protection should take. It may be assumed that the
importing countries will secure the extension of the GATT Cotton
Textile Agreement after September 1970 for a further period. In
these circumstances it would be politically unrealistic to leave
our own industry to fend for itself without effective protection,
though from a purely economic standpoint this could well be the
right solution, at least in the longer term.. In our view the
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