TNAG-0144-FCO40-180-Exports-of-textiles-to-United-States-of-America-1969 — Page 101

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of an international division of labour and reduce the results

of economic exchanges. The Federal Government is therefore also

trying gradually to reduce the export restrictions imposed by

agreements which exist with some countries that have low price

levels. On 18 March, 1969, the Federal Government again passed

resolutions to this effect (Hong Kong).

b) If the U.S.A. agreed on restrictions on the export of textiles,

they would create a dangerous precedent over the demand for similar

protection from other American industries (e.g. for leather

products and motor vehicles). Above all, it would be feared that

this trade policy in the U.S.A. would cause a world-wide

protectionist chain-reaction of voluntary restraint on exports.

c) Even though voluntary restraint on exports would be agreed

under the G.A.T.T., the economic relations in the world would

partly relapse into bilateralism. The introduction of politics

into international trade - a development which is unwelcome from

the economic point of view - could not be avoided.

3. Legal Objections

Voluntary restraint of exports under a government guarantee are

hardly compatible with the German Law on Foreign Trade

("Aussenwirtschaftsgesetz

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AWG"). Freedom of export forms the

Hence, an

main principle of the German Law on Foreign Trade. The exceptions

which have hitherto been made would not suffice for an official

quantitative restriction on the export of certain goods.

amendment af the law would probably become inevitable.

there would be certain legal objections under the E.E.C. Treaty,

At present, these are being examined by the E.E.C. Commission.

4. Objections from the Practical Point of View

Moreover,

Voluntary restraints of exports can only become effective if the

producers and exporters concerned can effectively be subjected to