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GATT study
study aims
aims to
29/6/12
defuse tension in textiles
Geneva. June 28,
An international study of world trade in textiles is to be undertaken for the first time in an effort to find the facts underlying the highly charged economic and social issues that often embitter relations between importing and exporting
countries.
A formal decision to establish a special working !
economic,
group to make a "study of fact regarding the technical social and commercial elements which influence world trade in textiles' was taken yesterday by the 56 nation Council of the general Agreement on Tariffs and Trade.
decided The action was because of the "great importance" for many GATT
member states of trade in textiles and textile goods of cotton. wool, and man-made libres, and the unsatisfactory that exists in situation
in these international trade products." the council said.
Mr Olivier Long. a former Swiss diplomat who is now GATT director-general, is to be chairman of the working party. Membership in the group is
open to any of the 80 member nations of GATT which wish to participate.
The study group is to hold its first meeting next month, with Histructions to report to the council by the end of the year.
In its study the group is to treat separately the various textile sectors, according to the fibres used and to the degree of processing.
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trade 147
The council, in dratung its directives
For
the working group. noted the "particular importance" of their textile exports for the poorer countries. as a source of foreign earnings and for their economic and social development.
Also, the council stressed that all solutions to textile trade problems should ne sought in the GATT the light of -"principles and objectives." These seek to assure equal treatment for all member states and the expansion of international trade by the removal of barriers to its free Now.
The low-cost exporting Countries are always fearful that their products may encounter new impediments to entering the industrialised
countries. For this reason they have emphasised that in endorsing the textiles study they are not committing themselves in any way to any future action.
In particular. Japan and other exporters have made clear that they are not to be regarded as acquiescing to bringing wool and man-made fibre textiles under some arrangement such as that which now regulates international trade in cotton textiles under GATT auspices.
The United States was the prime mover of this accord. which permits the industrialised countries to limit the expansion of cotton textiles shipments ; onto their home markets from low-cost countries on the ground of "market disruption" for domestic manufacturers.
Mr Long had long been pressing to have the over all textile trade problem taken up at the international level in order to defuse the issue in Country-to-country relations. But it was only last month the Japan agreed to the principle of a GATT study in a private meeting here with the United States. Britain and members of the Common Market. – NYTS.
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