{
b) from importers
in
Many importers have made contracts in greater quantities, different categories of goods and from different sources, than the continuation of quotas will allow, in the expectation of a quota free market in 1972. We shall do what we can to minimise dislocation of trade consistently with continuing quota protection. We believe that by taking steps to counter the threat of disruption we are acting in the long-term interests of importers as well as of the UK industry and overseas suppliers. Some sectors of the industry which use imported goods may experience short term difficulties; but this is a consequence of protecting Lancashire as a whole from disruption.
DETAILS OF EXISTING QUOTAS
•
11. The quotas (under the GATT Long Term Arrangement on Cotton Textiles) cover cotton yarn and woven cotton cloth and made-up articles from Hong Kong, India, and the "Global Quota" countries. They apply to all countries other than EEC, EFTA, USA, Canada, Australia and New Zealand (which are free of quotas), Japan and the Sino-Soviet countries (which are covered by separate quota restrictions which will continue next year anyway) and the Irish Republic for which special arrangements are being made (see paragraph 32 below) Imports from India, Hong Kong and the Global quota countries regularly account for between 60 and 70 per cent of total imports of cotton textiles into the UK. India and Hong Kong have separate negotiated bilateral quotas which they administer themselves and which amount to over two-thirds of existing quotas. Of the remaining one-third, approximately half is allocated in the form of individual country quotas to 34 of the Global Quota countries. The size of these is determined by the UK, but these countries co-operate in administering then. remaining half of the quota for Global Quota countries is distributed in the form of licences to UK importers and may cover imports from any of the Global Quota countries (including the 34 which have country quotas) but not from India and Hong Kong. Pakistan provides by far the greatest proportion of imports under the Global Quotas, but up to seventy countries do some trade with us under them. Figures showing the quota levels for cotton yarn, woven cotton cloth and made up articles are shown below:-
Fresent restraint levels
India
Cotton yarn
12m lbs
Hong Kong
7m lbs
Country quotas
4m lbs
(allocated to 34 of
the global quota
The
Woven cotton cloth and made-ups
205m square yards
197m square yards
69m square yards
countries but not·
formally agreed by them)
"Global" licences (issued to UK importers)
4m lbs
69m square yards
+
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