XN000022-1987-01-17 — Page 3

SATURDAY, JANUARY 17, 1987

TRADE AGREEMENT WITH CANADA * * *

A TRADE DEPARTMENT SPOKESMAN ANNOUNCED TODAY (SATURDAY) THAT AGREEMENT HAD BEEN REACHED WITH CANADA ON A NEW BILATERAL TEXTILES AGREEMENT FOR THE PERIOD 1987-1991. THE NEGOTIATIONS ENDED ON SATURDAY EVENING.

THE SPOKESMAN SAID THAT THERE WERE A NUMBER OF SIGNIFICANT CHANGES AS COMPARED WITH THE PREVIOUS AGREEMENT. MOST SIGNIFICANTLY, THE AVERAGE GROWTH RATES FOR APPAREL CATEGORIES WERE REDUCED FROM 2.2 PER CENT - 2.7 PER CENT TO 1.12 PER CENT, ALTHOUGH THE OVERALL GROWTH RATE WAS ABOUT THE SAME AS BEFORE, AT 2.7 PER CENT (COMPARED WITH 2.3 PER CENT - 2.9 PER CENT).

RESTRAINTS WERE ALSO EXTENDED TO CERTAIN APPAREL MADE FROM +NEW FIBRES+ SUCH AS RAMIE AND SILK BLENDS, WITH APPROPRIATE ADJUSTMENTS TO THE QUOTA LEVELS. FLEXIBILITY REMAINED GENERALLY AT PRESENT LEVELS, ALTHOUGH SWING FROM TEXTILES TO APPAREL WAS REDUCED FROM 5 PER CENT TO 1 PER CENT.

IN ORDER TO PARTLY COMPENSATE FOR THESE ADVERSE CHANGES THERE WERE ALSO SOME IMPROVEMENTS, INCLUDING ADDITIONS TO SOME QUOTA LEVELS, AND REMOVAL OF SOME SUB-LIMITS.

+THE NEGOTIATION WAS A DIFFICULT ONE, AND SPECIAL MEETINGS OF THE TEXTILES ADVISORY BOARD WERE HELD ON BOTH THURSDAY AND FRIDAY AFTERNOONS TO ADVISE THE NEGOTIATING TEAM. THE KEY ISSUES WERE NOT RESOLVED UNTIL SATURDAY MORNING. WHILST THIS IS UNDOUBTEDLY A VERY RESTRICTIVE AGREEMENT, ESPECIALLY AS REGARDS APPAREL, THERE ARE NO CUTBACKS AND THE TRADE WILL BE ABLE TO RELY ON STEADY IF MODEST GROWTH OVER THE NEXT FIVE YEARS, HAMISH MACLEOD, THE DIRECTOR OF TRADE, COMMENTED.

MORE DETAILS WILL BE ISSUED NEXT WEEK TO THE TRADE IN THE USUAL WAY.

STABILITY WILL BENEFIT TEXTILES INDUSTRY

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HONG KONG'S TEXTILES AND GARMENT INDUSTRY IS LOOKING FORWARD TO A PERIOD OF STABILITY TO CONCENTRATE ON IMPROVING THE QUALITY AND DESIGN OF PRODUCTS AS THE TRADE AGREEMENTS SIGNED LAST YEAR HAVE CLARIFIED EXPORT LEVELS.

THE ACTING GOVERNOR, SIR DAVID AKERS-JONES, STATED THIS BEFORE OPENING THE TRADE DEVELOPMENT COUNCIL'S GALA PRESENTATION OF THE HONG KONG FASHION WEEK THIS (SATURDAY) EVENING.

/HE POINTED