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FRIDAY, JUNE 13, 1975
NEW TEXTILE RESTRAINT AGREEMENT WITH CANADA
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A NEW TEXTILE RESTRAINT AGREEMENT WITH CANADA COVERING EXPORTS FROM HONG KONG TO CANADA OF BROADWOVEN POLYESTER FILAMENT FIBRE FABRICS WAS ANNOUNCED TODAY (FRIDAY) BY THE ACTING DIRECTOR OF COMMERCE AND INDUSTRY, MR. JAMES MCGREGOR.
THE AGREEMENT WAS REACHED AFTER FIVE DAYS OF NEGOTIATIONS IN HONG KONG. THE CANADIAN DELEGATION WAS LED BY MR. J.J. MCKENNIREY, GENERAL DIRECTOR OF OFFICE OF SPECIAL IMPORT POLICY. THE HONG KONG DELEGATION WAS LED BY MR. LAURENCE MILLS, THE DEPUTY DIRECTOR OF COMMERCE AND INDUSTRY (COMMERCIAL RELATIONS).
THE NEGOTIATIONS WERE HELD UNDER ARTICLE 3 OF THE ARRANGEMENT REGARDING INTERNATIONAL TRADE IN TEXTILES.
COMMENTING ON THE AGREEMENT, MR. MILLS SAID THAT CANADA HAD PRODUCED EVIDENCE TO SHOW THAT HONG KONG WAS CAUSING A THREAT OF MARKET DISRUPTION IN THE CANADIAN MARKET, AND IN ACCORDANCE WITH HONG KONG'S OBLIGATIONS UNDER THE ARRANGEMENT, HONG KONG HAD AGREED TO RESTRAIN EXPORTS FOR ONE YEAR FROM JULY 1, 1975.
MR. MILLS ADDED THAT THERE HAD BEEN DISCUSSION ON THE PRECISE MEANING OF CERTAIN PASSAGES IN THE ARRANGEMENT AND THAT CANADA HAD NOW UNDERTAKEN TO SEEK A DEFINITIVE INTERPRETATION OF THEM FROM THE TEXTILES SURVEILLANCE BODY AND THE TEXTILES COMMITTEE IN GENEVA.
+AS A RESULT, HONG KONG HAS AGREED TO LIMIT ITS EXPORTS OF THE FABRICS IN QUESTION TO A LEVEL OF 385,177 SQ. YDS AS AN INTERIM MEASURE PENDING RECEIPT OF THE INTERPRETATION,+ MR. MILLS ADDED.
FOR THEIR PART, THE CANADIANS HAVE UNDERTAKEN TO EXCLUDE FROM RESTRAINT ANY SPECIFIC FABRIC WITHIN THE RANGE OF BROADWOVEN POLYESTER FILAMENT FIBRE FABRICS WHICH THEY CONSIDER TO BE NON-COMPETITIVE WITH CANADIAN PRODUCTION, AND A CERTIFICATION SYSTEM WILL BE ESTABLISHED TO PROVIDE FOR IMPORT CLEARANCE IN CANADA OF THESE EXCLUDED FABRICS. DETAILS OF THIS SYSTEM WILL BE ANNOUNCED LATER.
EXPORT LICENCES IN RESPECT OF THESE FABRICS WERE SUSPENDED ON APRIL 28, 1975 AT THE REQUEST OF THE CANADIAN GOVERNMENT. THE COMMERCE AND INDUSTRY DEPARTMENT IS NOW WORKING ON THE CALCULATION OF EXPORT QUOTAS AND IT IS HOPED THAT THESE WILL BE ISSUED SHORTLY AND THAT EXPORT LICENSING WILL BE RESUMED ON JULY 1, 1975.
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