XN000022-1985-06-06 — Page 3

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THURS. 1, JUNE 6, 1935

DEVELOPING COUNTRIES ATTACK PROTECTIONISM

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THE JENKINS BILL, WHICH COULD LEAD TO CUTS OF WELL OVER 50 PER CENT IN THE EXPORTS OF TEXTILES AND APPAREL TO THE UNITED STATES BY SOME SUPPLIERS, IS IN DIRECT CONTRADICTION OF U.S. COMMITMENTS UNDER THE MULTI-FIBRE ARRANGEMENT (MFA), BILATERAL AGREEMENTS AND OTHER DECLARATIONS.

THIS WAS SAID BY MR MOHAMMED BAJWA OF PAKISTAN, WHO MADE A STATEMENT ON BEHALF OF DEVELOPING COUNTRIES WHICH EXPORT TEXTILES AND CLOTHING, AT A SPECIAL MEETING OF GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) IN GENEVA YESTERDAY (JUNE 5).

THERE ARE 28 MEMBERS IN THE GROUP WHICH BACKS A PROGRAMME OF COOPERATION AMONG DEVELOPING COUNTRIES AND EXPORTERS OF TEXTILES AND CLOTHING. HONG KONG, A MEMBER OF THE GROUP, SUPPORTED THE STATEMENT IN THE GATT MEETING.

THE STATEMENT STRONGLY ATTACKED PROTECTIONIST TRADE TENDENCIES BEING DISPLAYED BY SOME DEVELOPED COUNTRIES.

+THE MOUNTING PROTECTIONIST PRESSURES CAN BEST BE EXEMPLIFIED IN THE RECENT DEVELOPMENTS RELATING TO THE LEGISLATIVE PROPOSAL IN THE U.$. CONGRESS, THE TEXTILE AND APPAREL TRADE ENFORCEMENT ACT OF 1985, BETTER KNOWN AS THE JENKINS BILL.

+THIS BILL, WHICH WAS INTRODUCED INTO THE CONGRESS ON MARCH 19, SEEKS TO ROLLBACK TRADE SUBSTANTIALLY FROM DEVELOPING SUPPLIERS. IF ENACTED. OVERALL TEXTILE AND APPAREL IMPORTS TO THE UNITED STATES IN 1985 WOULD BE CUT 20 TO 30 PER CENT FROM THE 1984 LEVEL, AND FOR SOME INDIVIDUAL SUPPLIERS, REDUCTIONS WOULD BE WELL OVER 50 PER CENT.

+YOU CAN SEE THAT WHILE SOME OF US ARE ROMANTICALLY SINGING THE PRAISES OF A NEW ROUND OF TRADE NEGOTIATIONS, OTHERS ARE BUSY SHARPENING THE GUILLOTINE TO ACHIEVE NEW TRADE RESTRICTIONS.

+WE HAVE SEEN THE USE OF SUCH PRESSURE TACTICS ON THE EVE OF MULTILATERAL NEGOTIATIONS ENOUGH TIMES BEFORE. WE NOTE THAT THE U.S. ADMINISTRATION IS ALREADY ON RECORD AS OPPOSING THE BILL. WE ARE NEVERTHELESS DEEPLY CONCERNED THAT THIS BILL HAS BEEN INITIATED AND PUSHED DESPITE ITS BEING IN DIRECT CONTRADICTION WITH U.S. COMMITMENTS UNDER THE MFA, THE BILATERAL AGREEMENTS AND THE MINISTERIAL DECLARATION, SAID THE STATEMENT.

NEW TRADE RESTRICTIONS AND RECOURSE TO TRADE MEASURES OUTSIDE THE MULTILATERAL FRAMEWORK ESTABLISHED BY GATT GAVE RISE TO SERIOUS EROSION OF CONFIDENCE IN THE MULTILATERAL TRADING ITSELF.

/MINISTERS OF