MONDAY, NOVEMBER 3, 1986
FS: STABILITY IMPORTANT FOR TEXTILES INDUSTRY
*****
WHILE THE CASE FOR FREE TRADE IS QUITE WIDELY EXPOUNDED, IN PRACTICE VARIOUS FORMS OF PROTECTIONISM ABOUND FOR VARYING REASONS, THE FINANCIAL SECRETARY, MR PIERS JACOBS, SAID TODAY (MONDAY).
ADDRESSING THE ANNUAL CONFERENCE OF THE HONG KONG MANAGEMENT ASSOCIATION ON INTERNATIONAL TRADE AND COMPETITION+, MR JACOBS NOTED THAT A CASE OF INSTITUTIONALISED PROTECTIONISM MIGHT BE FOUND IN THE INTERNATIONAL TEXTILES AND CLOTHING TRADE, WHOSE SIGNIFICANCE TO HONG KONG'S ECONOMIC WELL-BEING WAS UNDERLINED BY THE FACT THAT OVER 40 PER CENT OF ITS DOMESTIC EXPORTS WERE IN THIS CATEGORY.
HE RECALLED THAT ON AUGUST 1 THIS YEAR THE MULTI-FIBRE ARRANGEMENT (MFA) WAS EXTENDED FOR A FURTHER PERIOD OF FIVE YEARS UNTIL JULY 31, 1991. THE COVERAGE OF THE ARRANGEMENT INCLUDED VEGETABLE FIBRES AND SILK AND VEGETABLE FIBRE BLENDS, WHICH WERE PREVIOUSLY OUTSIDE THE AMBIT OF THE MFA.
NEVERTHELESS, THERE WERE SOME IMPROVEMENTS FROM THE POINT OF VIEW OF EXPORTERS. INCLUDING PROVISIONS TO STRENGTHEN THE RULES FOR DETERMINING MARKET DISRUPTION AND PREVENTING CUTBACK ON QUOTAS, HE SAID.
NOTWITHSTANDING THE FACT THAT THE MFA IS STILL A PROTECTIONIST AND DISCRIMINATORY INSTRUMENT, WE HAVE ACQUIESCED IN AGREEMENT TO IT IN ORDER THAT OUR TEXTILES AND GARMENT INDUSTRY MAY HAVE A PERIOD OF STABILITY AND CERTAINTY.
+THAT I BELIEVE TO BE OF VITAL IMPORTANCE IN THE YEARS AHEAD, + HE ADDED.
AS FOR BILATERAL TEXTILES AGREEMENTS CONCLUDED WITH SOME OF HONG KONG'S MAJOR TRADING PARTNERS OVER THE PAST 12 MONTHS, MR JACOBS SAID THAT IN JUNE AN AGREEMENT COVERING THE PERIOD 1986 TO 1991 WAS REACHED WITH THE UNITED STATES.
+ THE AGREEMENT IS SLIGHTLY MORE RESTRICTIVE THAN ITS PREDECESSOR IN TERMS OF GOODS COVERED AND GROWTH POTENTIAL, HE SAID.
HE ADDED THAT ANOTHER AGREEMENT CONTAINING SOME MODEST IMPROVEMENT OVER ITS PREDECESSOR IN TERMS OF GROWTH AND FLEXIBILITY WAS CONCLUDED WITH THE EUROPEAN ECONOMIC COMMUNITY LAST MONTH. IT WOULD RUN FROM 1987 TO 1991.
+WF WOULD HAVE LIKED BOTH THE AGREEMENTS TO INCLUDE MORE IMPROVEMENTS, WHICH WE CONSIDERED WERE REASONABLE, PARTICULARLY IN VIEW OF OUR OPEN MARKET POLICIES.
/, NEVÆRFIDELEA, WE