by weight. Although there was a slight drop in 1980 due to the recession, it was not as great as the fall in production, and import penetration rose again and now stands at about 35% by value (more by weight), overall. But for particular items, such as jeans, import penetration is very much higher
up to 77%.
5 It has been pointed out by Hong Kong and others that the majority of our textile and clothing imports come from developed countries and that these (eg from the USA) have grown faster proportionately in recent years than those from low-cost sources. This is true. But trade in textiles and clothing with
developed countries has been broadly in balance. With the EC we are almost
exactly in balance. The much publicised growth of imports from America, which has in any case fallen away with the strengthening of the dollar, is roughly offset by surpluses with EFTA, etc. In contrast, the low-cost suppliers account for almost £1,200 million of imports, with very little reverse trade flow in
this sector.
The MFA negotiations
6
In recognition of the serious situation in the Community's textile and clothing industries, the Council of Ministers gave the Commission a very tough negotiating mandate for the new bilateral agreements, designed to limit the overall growth in imports to the forecast growth in consumption. Its main elements were (i) strict global ceilings for the eight most sensitive "Group I"
(ii) an uptake of previously underused quotas, cut-backs of 10% in the quotas of the five most sensitive (Group I) clothing categories from the 4 'dominant' suppliers (Hong Kong, South Korea, Macao and Taiwan); and a strict
control on annual growth rates including the products outside Group I.
products,
7
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Eighteen agreements were concluded by the end of September within the terms of this mandate. Hong Kong, Korea, Macao, the Philippines, Singapore, Malaysia, Indonesia, Brazil and Argentina have still to settle. The Commission's report
on the negotiations so far was received at the beginning of October, and the Council of Ministers will be meeting on 25/26 October to consider its proposals for a further round. Supplementary briefing will be provided after that meeting.
8
9
Negotiations with Hong Kong were suspended at the end of September without agreement, primarily because Hong Kong was opposed in principle to the proposed