4.
(b) To avoid disruption in markets of industrialised countries by
imports from the developing countries.
(Article provided that, where there was disruption or
threatened disruption affecting any particular cotton products,
an importing country might request restraint at a level not
lower than that in a recent specified period of 12 months and
might, if agreement had not been reached within 60 days, impose
restrictions at that level).
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) 1.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 circumstances
existed. (Annex B of the L.T.A.)
it
5. When accepting the L.T.A., the U.K. entered a reservation that,
oould 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. 35% of the U.K. consumption was imported from
developing countries).
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).
16. In
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