JULY 1085
OTHER RECIPIENTS INCLUDE LEADING FIGURES IN THE SENATE AND CONGRESS AND IN THE ADMINISTRATION.
THE LETTER WAS SIGNED BY MR FELIPE JARAMILLO, THE CHAIRMAN OF THE INFORMAL GROUP OF 28 DEVELOPING COUNTRIES INCLUDING HONG KONG WHICH EXPORT TEXTILES AND CLOTHING.
THE GROUP WARNED THAT THE BILL WOULD HURT U.S. EXPORT INDUSTRIES BY REDUCING THE PURCHASING POWER OF DEVELOPING COUNTRIES WHICH ARE A BIGGER MARKET FOR U.S. MERCHANDISE EXPORTS THAN JAPAN AND WESTERN EUROPE COMBINED. IT WOULD ALSO CAUSE AN INFLATIONARY IMPACT ON U.3. PRODUCTION WHICH WOULD IN TURN RAISE U.S. PRICES ON WORLD MARKETS.
THE PROPOSED CUTBACKS ON IMPORTS TO THE U.S. FROM DEVELOPING COUNTRIES WOULD PROBABLY BE MADE UP BY DEVELOPED COUNTRIES WHO ARE
IT WAS NOT RESTRAINED, PARTICULARLY GIVEN THE STRONG DOLLAR. UNLIKELY THAT DOMESTIC PRODUCERS WOULD FILL THE GAP.
THE BILL WOULD ENCOURAGE U.S. TEXTILE AND APPAREL FIRMS TO INVEST BILLIONS OF EXTRA DOLLARS IN MORE TEXTILE MACHINERY. INCREASED MECHANISATION WOULD LEAD TO INCREASED PRODUCTIVITY, PRINCIPAL CULPRIT LEADING TO JOB LOSSES.
THE
THE COST OF PROTECTION WOULD BE SIGNIFICANTLY RAISED FOR CONSUMERS WHO ALREADY BEAR A HEAVY BURDEN AND THE IMPORT LICENSING SYSTEM ENVISAGED BY THE BILL WOULD POSE A FURTHER EXPENSIVE ADMINISTRATIVE BURDEN.
FOREIGN EXCHANGE EARNINGS OF DEVELOPING SUPPLIERS WOULD DROP AGGRAVATING THEIR DEBT AND BALANCE OF PAYMENT PROBLEMS AND SETTING BACK DEVELOPMENT PROSPECTS, PARTICULARLY FOR THE POOREST NATIONS.
+THE RATIONALE UNDERLYING THE BILL CONTAINS SERIOUS FACTUAL INCONSISTENCIES AND MISCONCEPTIONS ABOUT THE IMPACT OF TEXTILE AND APPAREL IMPORTS ON THE DOMESTIC U.S. INDUSTRY, THE NOTE SAYS.
+THUS IT IS DOUBTFUL THAT IT WILL ACHIEVE ITS OBJECTIVE OF PREVENTING PERCEIVED DISRUPTION TO THE U.S. TEXTILE AND APPAREL INDUSTRIES. YET IT WILL INCUR CONSIDERABLE COSTS TO THE U.S. ECONOMY AS WELL AS TO DEVELOPING COUNTRY ECONOMIES, WHICH WILL EXPERIENCE SERIOUS CUTEACKS IN THEIR CAPACITY TO IMPORT AND TO REPAY THEIR DEBTS.
+THE REPERCUSSIONS ON TRADE POLICY WOULD BE NO LESS SEVERE. AS THE BILL WOULD AMOUNT TO AN ABROGATION OF U.S. COMMITMENTS UNDER THE MULTI-FIBRE ARRANGEMENT AND OTHER TRADE AGREEMENTS.+
THE DEVELOPING COUNTRIES POINTED OUT THAT:
*
ALTHOUGH THE BILL REFERS TO A ONE PER CENT GROWTH RATE IN CONSUMER DEMAND FROM 1980 TO 1984, U.S. DEPARTMENT OF COMMERCE DATA SHOWS THAT CONSUMER SPENDING ON SPRAFI GREW ON AVERAGE 5.5 PER CENT A YEAR ADJUSTED FI INFLATION DURING THE PERIOD.