TEXT OF STATEMENT
The European Commission have sought a mandate from the Council to
re-negotiate their agreements under the GATT Long-Term Arrangement
on Cotton Textiles with Japan, Hong Kong, India, Pakistan, South
Korea and Egypt to take account of the enlargement of the Community.
The agreements provide for these countries to restrict their exhorts
of cotton textiles to member countries of the Community. They opp จ
until 30 September 1973 except for Hong Kong and Korea where the
agreements last until 31 December 1973. A comparable arrangement
would be sought as regards exports of cotton textiles from Taiwan.
L
The new arrangements would extend as far as practicable to trade in
cotton textiles between the 7 countries and the UK, Denmark and
Ireland the pattern of restraints in the Community's existing
agreements. The practical effect would be to limit exports to the
3 acceding countries at approrirately the same levels (ith 2. rop-
riate allowance for growth) as under the bilateral arrangenents
currently existing between the countries concerned. The catereris
tion of the quotas and arrangements for flexibility between TONN
and categories would as far as possible be re-arranged to bring tha
into conformity with those in the Community's agreements, agein
out substantially chan ing their existing effect.
The ¡roducts to be covered you'd in large reasure be the care m
under the present bilateral arrangements. including in the case of
the UK cotton yarn. The UK will retain existing restraint arr nge-
ments on cotton textiles with countries other than the 7 covered by
the Community's agreements under the Long-Term Arragement.
The negotiations will take place as soon as possible and ir any
case before the end of this year.
CONVIDENT) ^I,
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