FRIDAY, JULY 8, 1977
CANADA TAKES UNILATERAL ACTION AGAINST HK TEXTILE PRODUCTS
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THE CANADIAN GOVERNMENT HAS DECIDED TO TAKE UNILATERAL ACTION TO RESTRICT IMPORTS OF TWO TEXTILE PRODUCTS FROM HONG KONG,
A SPOKESMAN OF THE COMMERCE AND INDUSTRY DEPARTMENT, SAID TODAY THAT FORMAL NOTIFICATION OF THE RESTRICTIONS HAD BEEN RECEIVED FROM THE CANADIAN GOVERNMENT.
THE AFFECTED ITEMS ARE :
*
POLYESTER FILAMENT FABRICS, IMPORTS OF WHICH WOULD BE LIMITED TO 385,177 SQUARE YARDS FOR THE 12-MONTH PERIOD BEGINNING MARCH 16, 1977-
* BED SHEETS OF ALL FIBRES, IMPORTS OF WHICH WOULD BE LIMITED
TO 639,043 PIECES FOR THE 12-MONTH PERIOD BEGINNING MARCH 11, 1977.
THE SPOKESMAN SAID THAT THE CANADIAN GOVERNMENT'S ACTION WAS TAKEN UNDER ARTICLE 3.5 OF THE MFA. THIS PROVIDED THAT, IF NO AGREEMENT IS REACHED IN CONSULTATIONS ON A REQUEST FOR EXPORT RESTRAINT. THE IMPORTING MEMBER REQUESTING THE CONSULTATIONS MAY, AFTER 60 DAYS FROM THE DATE OF REQUEST, IMPOSE A LIMIT ON IMPORTS OF THE RELEVANT PRODUCTS FROM THE EXPORTING MEMBER CONCERNED.
THE CANADIAN GOVERNMENT REQUESTED THE HONG KONG GOVERNMENT, IN MARCH THIS YEAR, TO ENTER INTO CONSULTATIONS WITH A VIEW TO ESTABLISHING EXPORT RESTRAINTS BY HONG KONG ON THESE TWO ITEMS SO AS TO REMOVE MARKET DISRUPTION.
THESE CONSULTATIONS TOOK PLACE IN HONG KONG ON MAY 26 TO 28, 1977, BUT DID NOT RESULT IN AGREEMENT.
THE ACTING DIRECTOR OF COMMERCE AND INDUSTRY, MR. BILL DORWARD, SAID THAT HE WAS NOT ALTOGETHER SURPRISED BY THE CANADIAN GOVERNMENT'S ACTION BECAUSE, DURING THE MAY CONSULTATIONS, THE CANADIAN DELEGATION REPEATEDLY THREATENED TO TAKE UNILATERAL IMPORT ACTION IF AGREEMENT WAS NOT REACHED.
+BUT EVEN NOW THAT THEY HAVE DONE IT, I FIND IT VERY DIFFICULT TO SEE HOW IT CAN BE JUSTIFIED+, MR, DORWARD SAID.
MR. DORWARD REVEALED THAT, DURING THE MAY CONSULTATIONS, THE HONG KONG DELEGATION REJECTED CANADA'S REQUESTS FOR RESTRAINT BECAUSE HONG KONG DID NOT AGREE THAT A CASE OF MARKET DISRUPTION CAUSED BY IMPORTS FROM HONG KONG HAD BEEN ESTABLISHED FOR EITHER OF THE PRODUCTS IN QUESTION.
THE MFA PROVIDED CLEARLY THAT MARKET DISRUPTION +SHALL BE BASED ON THE EXISTENCE OF SERIOUS DAMAGE TO DOMESTIC PRODUCERS OR ACTUAL THREAT THEREOF+ CAUSED BY +A SHARP AND SUBSTANTIAL INCREASE OF IMPORTS OF PARTICULAR PRODUCTS FROM PARTICULAR SOURCES+.
/IN THE