CONFIDENTIA D
BACKGROUND
The Commission's Approach
8.
Following the check in the negotiations for the renewal of the Multi-Fibre Arrangement in Geneva in July, it was agreed within the Community that work should now concentrate on the rapid conclusion of bilateral agreements between the Community and its main supplying countries. It has been agreed that the Community will take a decision on whether or not to sign a renewed MFA only when it has judged the results of these bilateral negotiations. The Commission have now produced a programme of action for the bilateral negotiations, which is rational and
comprehensive.
9. The Commission's approach envisages the conclusion of bilateral agreements, covering all textile products, with the Community's 30 main suppliers. The remaining suppliers will be lumped together and given a basket quota, with inner stops specifying that no one supplier may take more than a certain percentage of the basket quota. The textile products will be divided into four groups according to their degree of import penetration on the Community market. Global limits applying to all low cost suppliers will be set for each group. Growth rates will be minimal for the most sensitive group of products and will be above 6% for the least sensitive group. The base levels for sensitive products will be in accordance with the Community's agreed aim of stabilisation of import penetration at 1976 levels. In order to leave room for newcomers and small suppliers, and also to avoid cutting back below 1976 levels for the poorest developing countries, cuts below 1976 sendings will be applied to the dominant suppliers (Hong Kong, Korea and Taiwan).
10. To complement this the Commission intend to propose a number of other measures, including particularly a revision of the 1979 Generalised Scheme of Preferences (GSP) for textiles to give a greater duty-free access. The Commission aim is probably to offer the suppliers something in return. We will need to look at
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CONFIDENTIAL