INDUSTRY AND TRADE
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this regard may be realized at the Second United Nations Con- ference on Trade and Development scheduled to be convened in New Delhi in February 1968.
In the context of the GATT, the sixth round of trade negotiations, commonly known as the Kennedy Round, drew to a successful conclusion in June 1967, after four years. The results of the negotia- tions included extensive tariff reductions by the participating countries. These reductions are generally to be implemented in equal stages over five years. Other achievements of the Kennedy Round included modification or removal of certain non-tariff barriers to trade. All these concessions are to be applied on a most-favoured-nation basis.
In the textiles sector, the GATT Long-Term Arrangement regard- ing international trade in cotton textiles, which reached the end of its fifth and final year on September 30, was renewed for another three years to 1970 after considerable bilateral and multilateral discussions in which Hong Kong was closely involved. In the course of the fifth year of the arrangement, Hong Kong's exports of cotton textiles to the United States, Canada, Norway, the Federal Republic of Germany and the Benelux countries were under re- straint, to a greater or lesser extent, as a result of agreements reached in accordance with the provisions of the arrangement.
An understanding was reached in 1966, at the conclusion of the five-year Hong Kong/United States bilateral agreement on cotton textiles, that a second stage of negotiations would be held once the extension of the Long-Term Arrangement was assured. It transpired, however, that these negotiations were wider in scope than originally envisaged, as a result of a problem of definition of cotton textiles which had become significant in trade terms from late 1966. Negotiations in Washington DC, in April, resulted in the exten- sion, from June 1, of the coverage of the restraint agreement to certain fabrics of cotton and man-made fibre not hitherto regarded as cotton textiles by Hong Kong. At the same time, it was agreed there would be an annual increase of 15 million square yards in the aggregate limit and additional flexibility provisions.
Export of cotton fabrics to Canada were restrained at an annual limit of 11.09 million square yards under a three-year agreement,