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MONDAY, SEPTEMBER 17, 1979
PROTECTIONISM WILL BACKFIRE
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SIR MURRAY WARNS
THE GOVERNOR, SIR MURRAY MACLEHOSE, TODAY (MONDAY) WARNED MAJOR ECONOMIC POWERS THAT THE GREATER THE RESTRICTIONS ON IMPORT OPPORTUNITIES FOR EFFICIENT DEVELOPING COUNTRY PRODUCERS, THE GREATER THE PRESSURE WOULD BE ON THEM TO MOVE UP MARKET.
+AND THIS WAY NOT ONLY DO THEY INCREASE THEIR EARNINGS FROM A LIMITED VOLUME OF TRADE BUT ALSO THEY MUST TEND TO COMPETE MORE DIRECTLY WITH THE HIGHER END OF THE MARKET TRADITIONALLY SERVED BY DOMESTIC PRODUCERS, HE SAID.
*THE VOICE OF CONSUMER INTERESTS AND AT THE END OF THE DAY IT IS THEY WHO HAVE TO PAY — IS INCREASINGLY BEING HEARD IN PROTEST AT THE COST OF PROTECTIONISM.+
SIR MURRAY WAS SPEAKING AT THE OPENING OF THE INTERNATIONAL CONFERENCE OF THE CLOTHING AND FOOTWEAR INSTITUTE HELD AT THE CITY HALL THEATRE.
OBJECTIVE STUDIES BY IMPARTIAL OFFICIAL AND ACADEMIC BODIES IN DEVELOPED COUNTRIES ARE BEGINNING TO PROLIFERATE, UNDERLINING THE ARGUMENTS AGAINST PROTECTIONISM, SIR MURRAY POINTED OUT.
+THIS IS TIMELY. WE ARE APPROACHING ANOTHER CRITICAL PERIOD IN THE EVOLUTION OF THIS SITUATION AND IF CLEAR SIGHTEDNESS AND ENLIGHTENED LONG TERM SELF-INTEREST ON THE PART OF MAJOR POWERS DO NOT PREVAIL, THE CONSEQUENT DAMAGE MAY NOT BE CONFINED TO THE FEW SO-CALLED LOW COST SUPPLIERS OF TEXTILE PRODUCTS,+ THE GOVERNOR WARNED.
SIR MURRAY SAID THE SHADOW OF PROTECTIONISM HAD LENGTHENED OVER WORLD TRADE IN RECENT YEARS. WITH THE EXCEPTION OF JAPAN, AND THAT NOW TO A DIMINISHING DEGREE, ALL THE SUPPLIERS WHOSE TRADE HAS BEEN RESTRICTED HAVE BEEN PART OF THE DEVELOPING WORLD.+
SIR MURRAY STRESSED THAT THE SPECIAL RULES UNDER THE MULTI-FIBRE ARRANGEMENT SPECIFICALLY STATED THEIR INTENTION TO BE THE EXPANSION OF TRADE AND PROGRESSIVE LIBERALISATION, WHILE AT THE SAME TIME ENSURING ORDERLY DEVELOPMENT AND AVOIDING DISRUPTIVE EFFECTS IN BOTH IMPORTING AND EXPORTING COUNTRIES.
+BUT THE FABRIC OF INTERNATIONAL TRADE DISCIPLINE HAS BEEN WEARING THIN, HE SAID.
+A PERIOD OF WIDESPREAD ECONOMIC SLOWDOWN AND INFLATION HAS, PERHAPS NOT SURPRISINGLY, BROUGHT CALLS FOR FURTHER PROTECTION FROM AN INDUSTRY NOW ACCUSTOMED TO IT AS A MATTER OF COURSE,+ SIR MURRAY SAID.
+GOVERNMENTS OF MAJOR ECONOMIC POWERS HAVE REACTED BY EXACTING FROM THE IR TRADING PARTNERS RESTRAINED AGREEMENTS WHICH HAVE AT TIMES PAID LITTLE MORE THAN LIP SERVICE TO THE ONCE RESPECTED RULES AND SOON AFTERWARDS SOME HAVE SOUGHT BY VARIOUS DEVICES TO REDUCE STILL FURTHER THE EXPORT OPPORTUNITIES WHICH ARE PROVIDED FOR IN THE AGREEMENTS, HE SAID.
/SIR MURRAY............