Outline of the introductory statement which
the Commission intends to make in Geneva
ANNEX II
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M
Point out inter alia the following factors:
the Community is the world's most important market for imports of textile produc^va and clothing, particularly from the developing countries;
the Community alone has absorbed the greatest part of the world growth in imports during the last few years (72% during 1974 and 1975);.
conditions on the Community market lead to the conclusion that one of the MFA's basic aims has not been achieved under the present arrangement, viz. to avoid "disruptive effects".
Outline the Commission's claims as set out in Annexes I and II to S/399/77. Give particular emphasis to the importance of the following factors with regard to setting in motion the MFA procedures:
level of penetration of the importing market;
changes in domestic consumption;
cumulative effect of imports.
State that it must normally be possible for the annual growth rate to vary inversely to the level of import penetration,
Explain that for very high market penetration products stabilization of import penetration levels in relation to 1976 levels is necessary.
For a very small number of such products this means that the growth rate for all imports contributing to the disruption of the Community market may not exceed the growth rate of consumption. For the remaining very high market penetration products a slight increase of a few percent in the level of import penetration may nevertheless be allowed over the life of the renewed MFA.
State that the Community has set itself the target of concluding all bilateral negotiations by the end of 1977 and should the necessary bilateral agreements not be negotiated by the end of 1977 the Community will take steps to ensure that its stabilization aims are complied with,
On this basis the Community considers that its intentions are compatible with the provisions of the MFA, This must be explained to our partners in Geneva, If the Community's right to carry out its intentions is disputed by the other parties to the MPA, the question of seeking more basic changes to the MFA's provisions will need to be reconsidered by the Community.
S/1008 e/77 (COMER 195) lby/H/mf
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