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the exporting countries to agree to voluntary restraint. On the other hand public opinion in these countries is in favour of increasing imports from the developing countries and most of the Governments concerned would be reluctant to take unilateral action to impose restrictions on imports unless they thought they could defend their action under Article XIX of the G.A.T.T.
15.
The Japanese have most to lose from the adoption of restrictive policies by the developed cantries They consider that their share of the United States import market would be larger than it is but for the C.T.A. They also feel that they have been discriminated against in Europe and that an enlargement of the C.T.A. to cover all textiles would perpetuate this discrimination indefinitely.
16.
India
Hong
It is not clear that all the developing countries would (i) like to get rid of the C.T.A., or (ii) oppose its extension to other fibres. enjoys a privileged position in the U.K. and E.E.C. markets for cotton cloth and has little if any interest in exporting man-made fibre products. Kong has also built up a considerable trade in the U.K. and in the United States which she would like to sec protected against competition from other developing countries. The main weight of criticism is likely to
10ther. come from these countries, notably South Korea,
and Taiwan, and from countries such as Mexico and Colombia whose exports of cotton textiles to the United States have been curtailed under theC.T.A.
Prolongation of the C.T.A.
17.
The frustrations of Japan and the developing countries are likely to show at the October meeting of the Cotton Textiles Committee, when negotiations begin on the future of the L.T.A. M after 30th September, 1970, when the Agreement is due to expire.
/18.
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