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THURSDAY, MAY 29, 1980
MISS DUNN COUNTERED ONE OF THE PROPOSALS, MADE RECENTLY BY THE BRITISH TEXTILES CONFEDERATION FOR THE FUTURE OF THE MFA THAT, IN TIMES OF RECESSION, THE ACCESS RIGHTS OF EXPORTING COUNTRIES COULD BE CURTAILED.
+THIS IS A DOUBTFUL PROPOSITION, BECAUSE THE BRUNT OF ANY RECESSION IS NOT BORNE WHOLLY BY PRODUCERS IN IMPORTING COUNTRIES. THE FACT THAT QUOTA LEVELS ARE INCREASED BY A FIXED PERCENTAGE EACH YEAR DOES NOT NECESSARILY MEAN THAT ACTUAL IMPORTS WILL GROW IN A MARKET BY THAT PERCENTAGE. IN A RECESSION, IMPORTS USUALLY FALL IN LINE WITH CONSUMPTION, WHATEVER THE AGREED RATE OF GROWTH FOR IMPORTS.
+DIFFICULTIES WOULD ARISE IN DECIDING WHETHER OR NOT A RECESSION WAS PRESENT, AND THE QUID PRO QUO OF INCREASED GROWTH IN GOOD TIMES WHICH MIGHT ACCOMPANY A RECESSION CLAUSE MIGHT NEVER BE GRANTED IN PRACTICE BECAUSE OF LACK OF AGREEMENT ON WHETHER OR NOT +GOOD TIMES+ HAD ARRIVED, SHE SAID.
TRACING THE HISTORY OF THE MFA, MISS DUNN SAID THAT IT WAS A DEROGATION FROM THE MOST-FAVOURED-NATION (MEN) PRINCIPLE OF THE GATT. IT ENABLED IMPORTING COUNTRIES TO SEEK RESTRICTIONS ON EXPORTS OF PARTICULAR PRODUCTS FROM PARTICULAR SOURCES UNDER PRESCRIBED CIRCUMSTANCES.
THE EXPORTING COUNTRIES HAD, FOR TWO REASONS, RELUCTANTLY ACCEPTED THAT WHILE THE MFA WAS DESIGNED AS A RESTRICTIVE INSTRUMENT, ONE OF ITS OBJECTIVES WOULD BE TO ACHIEVE THE EXPANSION OF TRADE, THE REDUCTION OF BARRIERS TO SUCH TRADE AND THE PROGRESSIVE LIBERALISATION OF WORLD TRADE IN TEXTILE PRODUCTS. IT ALSO SPECIFICALLY PROVIDED CERTAIN CHECKS AND BALANCES TO ENSURE THAT, HAVING ACCEPTED A DEROGATION FROM THEIR GATT RIGHTS, THE EXPORTING COUNTRIES WOULD, NEVERTHELESS, BE ACCORDED CERTAIN FORMS OF PROTECTION,
+THESE INCLUDE MINIMUM LEVELS OF GROWTH AND FLEXIBILITY- A MORE OR LESS WORKABLE DEFINITION OF MARKET DISRUPTION ON THE BASIS OF WHICH RESTRICTIONS MIGHT BE SOUGHT AN UNDERTAKING THAT BILATERAL AGREEMENTS SHOULD, IN OVERALL TERMS, BE MORE LIBERAL THAN MINIMUM STANDARDS SET OUT IN THE ARRANGEMENT- LIMITS ON THE DURATION OF UNILATERAL RESTRICTIONS- AND THE ESTABLISHMENT OF THE TEXTILES SURVEILLANCE BODY, SAID MISS DUNN.
THE MFA, FOLLOWING ITS PREDECESSOR THE LONG TERM ARRANGEMENT (LTA), OFFERED A CHANCE FOR STABILITY AND MODEST GROWTH.
+1 REPEAT "MODEST' GROWTH, FOR ALTHOUGH TODAY THE FIGURE OF SIX PER CENT IS BEING CONSIDERED AN EXCEPTIONALLY HIGH GROWTH RATE, YET IT WAS ONLY A MODEST ONE PER CENT UP ON THE LTA GROWTH RATE OF FIVE PER CENT. AND MUCH LESS THAN THE SORT OF GROWTH MOST TRADERS EXPECTED TO SEE IN MANUFACTURES OTHER THAN TEXTILES.+
MISS DUNN ASKED TO WHAT EXTENT HAD THE RIGHTS AND OBLIGATIONS OF THE TWO OPPOSING INTEREST GROUPS BEEN EXERCISED ACCORDING TO THE TERMS OF THE MFA.
+AS FAR