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which had been caused (not just threatened) to the market for particular products. These conditions are unlikely to be met, if only because the market for cotton goods is dcclining. The real difficulty is likely to arise over man-made fibre products, particularly in the garment field. U.K. imports from Hong Kong are
If other increasing rapidly in spite of the tariff. countries impose restrictions on man-made fibre garments
we shall have to follow suit. And once we have imposed quotas on, e.g., polyester/cotton shirts in addition to the tariff it will be palitically impossible not to re- imposo quotas on cotton shirts if imports begin to rise in spite of the tariff. Indeed, once it had been accepted that the shirt industry must be protected, it would be very difficult not to impose quotas on all kinds
of shirts.
10.
This underlines a fundamental change in the position since 1962. The C.T.A. was designed to protect the traditional textile industry, using predominantly cotton. The protection which it gave to the clothing industry particularly firms using large quantities of cotton cloth to make, e.g. industrial overalls - was incidental, though very real: the object of the quota on made-up goods was to preserve a market for domestically produced yarn and cloth, but in the United Kingdom it has always been open to anyone to export British cloth to, e.g. Hong Kong, for making-up into garments for sale in the U.K. outside the quota. However, the pressure in future is likely to be all the other way. The spinning and weaving industries have reduced their labour costs very substantially and can compete with the developing countries over a wide field, particularly in the case of man-made fibres, but the garment industry is still very labour intensive and is likely to remain so for the foreseeable future, and in this case the distinction between cotton and other fibres is of little importance technically or commercially. That is why the U.K. garment manufacturers have reacted so strongly to the proposal to replace the quotas by a tariff, because They know that it is in this area that competition from
Hong Kong is likely to increase: and inöthig dig
In this opposition to liberalisation will
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