XN000022-1976-12-08 — Page 7

WEDNESDAY, DECEMBER 8, 1976

DORWARD ON CANADIAN TEXTILE ACTION

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THE ACTING DIRECTOR OF COMMERCE AND INDUSTRY, THE HON. BILL DORWARD, SAID TODAY THAT IT WAS THE HONG KONG GOVERNMENT'S VIEW THAT PARTIES TO THE MULTI-FIBRE ARRANGEMENT (MFA) SHOULD EXHAUST ALL ITS POSSIBILITIES FOR SOLVING TRADE PROBLEMS IN TEXTILES BEFORE HAVING RECOURSE TO OTHER PROVISIONS OUTSIDE THE MFA SUCH AS SAFEGUARD PROVISIONS IN THE GATT.

MR. DORWARD WAS REPLYING IN THE LEGISLATIVE COUNCIL TO A QUESTION BY THE HON. MISS LYDIA DUNN ON RECENT ACTIONS TAKEN BY THE CANADIAN GOVERNMENT AFFECTING TEXTILES.

LAST WEEK CANADA ABROGATED A NUMBER OF BILATERAL TEXTILE AGREEMENTS WITH HONG KONG WHEN SHE IMPOSED GLOBAL RESTRICTIONS ON VIRTUALLY ALL CLOTHING ENTERING CANADA.

MR. DORWARD SAID : +1 THINK SHOULD NOTE THAT IN THE HISTORY OF TEXTILE RESTRAINTS GOING BACK NEARLY 20 YEARS, THIS IS THE ONLY OCCASION ON WHICH A PARTICIPATING COUNTRY HAS CLAIMED THAT THE EXERCISE OF ITS GATT RIGHTS ALLOWS IT UNILATERALLY AND WITHOUT CONSULTATIONS TO SUPERSEDE CURRENT BILATERAL TEXTILE AGREEMENTS.+

HE ADDED IT SHOULD THEREFORE, I SUGGEST, BE REGARDED AS AN ISOLATED DEVIATION FROM NORMAL PRACTICE- AND WHILE

I UNDERSTAND AND SHARE THE CONCERN IMPLICIT IN MY HONOURABLE FRIEND'S QUESTION OVER THE DANGER OF PRECEDENT, THERE IS LITTLE IN OUR LONG EXPERIENCE OF BILATERAL AGREEMENTS WHICH WOULD LEAD US TO EXPECT IT TO BE FOLLOWED.+

IN REPLY TO ANOTHER QUESTION BY MISS DUNN ON WHETHER IT WAS PERMISSIBLE UNDER THE GATT FOR CANADA TO IMPOSE SUCH GLOBAL RESTRICTIONS, MR. DORWARD SAID THAT THERE WAS PROVISION,

IN ARTICLE XIX OF THE GATT, FOR SUCH ACTION, BUT HE DID NOT FEEL COMPETENT TO EXPRESS AN OPINION ON WHETHER OR NOT THE CANADIAN ACTION WAS JUSTIFIED WITH THE DATA TO HAND.

HE ADDED HOWEVER THAT IT WAS PREDICTABLE THAT THE CANADIAN ACTION WOULD SHORTLY BE THE SUBJECT OF +CLOSE SCRUTINY BY THE CONTRACTING PARTIES TO THE GATT TO EXAMINE ITS APPROPRIATENESS.+

MR. DORWARD ADDED : +IT HAS IN FACT ALREADY BEEN THE SUBJECT OF MUCH DEBATE IN THE GATT TEXTILES COMMITTEE WHICH IS CONCLUDING ITS ANNUAL MEETING THIS WEEK AND, WHILE I CANNOT REVEAL PUBLICLY THE POSITIONS ADOPTED IN THAT CLOSED BODY, I CAN SAY THAT HONG KONG, WITH MUCH STRONG SUPPORT, HAS BEEN HIGHLY CRITICAL OF THE PARTICULAR ACTIONS WHICH THE CANADIANS TOOK.+

/REPLYING