TNAG-0142-FCO40-178-Long-term-policy-on-International-trade-in-textiles-1969 — Page 224

22.

The following disadvantages would be involved:

(a) By obliging a country such as the United

. States to act, if at all, non-discriminatorily, we

would be obliging them to restrict imports from the U.K. at the same time that they restrain them from

Asiatic countries. At first sight this would directly damage our exports. It may be argued that

the nature of world trade in textiles is such that if the United States position e.g. in shirts, measures up to the terms of Article XIX so would

our own situation and we would therefore be equally able to impose import restrictions. To the extent

that our imports exceed our exports to restricted

markets we might on balance in terms of trade in textiles gain in this situation. Figures given at

Annex II show the extent to which this can be

expected to prove valid in various sectors of tex- tiles. However: (i) The situation envisaged amounts to one in which all, or almost/developed countries would simultaneously impose restrictions on imports of certain textiles from low-cost

producers. This would seem likely to be politically

explosive.

all

(ii) Compensation would have to

be given by each developed country applying restric- tions. The situation would be extremely complicated

and we would be involved in an arduous multilateral

negotiation from which we could not gain any net advantage (see (111) below).

(111) Even if in terms of trade

in textiles the balance was advantageous, when

account is taken of the compensation required by

Article XlX, it is clear that we would be obliged to lose in other trade whatever we gained in textiles.

(iv) It is true that as it

stands Article X1X leaves to the country concerned the judgment of what constitutes serious injury to its domestic industry, and there is nothing to stop a number of developed countries making this judgment simultaneously. But it would certainly be a radical departure from the traditional character of Article X1X (which is entitled Emergency Action on Particular Products) and if a tightening up of the conditions

/of