TNAG-0142-FCO40-178-Long-term-policy-on-International-trade-in-textiles-1969 — Page 229

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(b) To avoid disruption in markets of industrialised countries by

imports from the developing countries.'

(Article 3 provided that, where there was disruption or

threatened disruption affecting any particular cotton products, an importing country night request restraint at a level not

lower than that in a recent spesified period of 12 months and

might, if agreement had not been reached within 60 days, impose

restrictions at that level).

4. Under the terms of the Arrangement, allowance was also made for the application of other types of "mutually acceptable" agreement provided

that such an agreement was not contrary to the objectives of the L.T.A. (Artiole 4) and for increased access (in addition to that provided for in Article 2) i.e. if restrictions on imports of cotton textiles were

maintained for more than one year, the permitted level of those imports

should be increased by 5% annually unless exceptional oircumstances

existed, (Annex B of the L.T.A.)

5. When accepting the L.T.A., the U.K. entered a reservation that, it

gould undertake no obligation to increase access to the U.K. market as provided in Article 2 and Annex B for the following reasons:-

(1)

in the preceding decade the U.K. Cotton Textile industry

had experienced a substantial contraction (by about 50%) and

(ii) the U.K. was already importing a substantial volume of cotton

textiles particularly from developing countries and Japan

(approx. 39% of the U.K. aonsumption was imported from

developing countries).

Textiles

Such a reservation was envisaged by the Cotton Textiles Committee when

drafting the Long Term Arrangement, and was accepted by all other

✨ participating countries except Pakistan.

(The Arrangement does not,

therefore apply between the U.K. and Pakistan).

/6. In