- 3-

3. With regard to the second objective, on the other hand, it is clear that from the Community's standpoint the development of trade in textile products has not been orderly and equitable. The result has been serious disruption of markets in the Community (cf. section entitled "Facts").

It is necessary, therefore, to seek ways and means of remedying this state of affairs in the context of the renewal of the MFA.

III. THE COMMUNITY'S REQUESTS

1. Necessity for stabilization of rates of penetration in certain products

For products with a very high rate of market penetration, it is essential that the rate of penetration of imports by comparison with 1976 levels be stabilized. For a limited number of these products, such stabilization implies that the growth rate of all imports giving rise to disruption of the Community market will in no case exceed the growth rate of consumption for each of the products concerned.

For other products with a high rate of market penetration, however, a slight increase of a few points in the rate of penetration will be permissible during the period of application of the renewed MFA. For these products, in other words, the growth rate for all the imports concerned may be higher than for the products referred to in the preceding paragraph.

For yet other products, the growth rate may reach or

even exceed the level of 6% depending on the sensitivity of the product.

To sum up, as regards the growth rate, the Community considers that it should normally be possible for the rate to vary in inverse proportion to the rate of penetration of imports from all sources.

Such stabilization measures are indispensable for re-establishing the orderly development of trade in textiles in the Community, alleviating the effects of existing market disruption and ensuring the continued existence of a viable textile and clothing industry

L

Share This Page