TNAG-0147-FCO40-183-Exports-of-textiles-to-United-States-of-America-1969 — Page 160

Overall U.S. imports of cotton, wool, and man-made fiber textiles are at an annual rate this year of 3.7 billion square yards, compared to 3.3 billion in 1968 and 1.5 billion in 1964. The import consump-

The

tion ratios for these products have doubled in recent years. ratio for man-made fiber textiles is now at the point reached by cotton textiles when the LTA was negotiated. The wool textile ratio

is now 26% and the cotton textile ratio is now above 11%.

Many countries that began their trade in the cotton textile field and which entered into agreements with the United States under the LTA in some cases, now export more than four times as much man-made fiber textiles to the United States as they do cotton textiles. countries are beginning to ship man-made fiber textiles and are

Other expanding their exports to us very rapidly. growth of these imports carries with it the same serious problems of

In our view the dramatic market disruption that existed for cotton textile products at the birth of the LTA eight years ago.

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A number of importing and exporting countries have recognized he existence of problems in these areas and have taken action by agreement and otherwise to regulate the flow of trade in these goods. These actions have had the effect of channelling exports to the markets of countries that do not have such restrictions. United States market is the only major unrestricted market in the The world. This situation has been a major contributing factor in the overell United States textile import problem, a problem which requires an international solution.

The United States remains prepared at this time to accept con- tinued growth on a reasonable and orderly basis in the exports of these products to the United States market. We believe most firmly,

however, that this trade must be on an orderly basis and the growth in our market shared equitably by both domestic and foreign manu- facturers.

The dramatic increase in imports of man-made fiber and wool textiles in recent years has far out-paced the growth of the United States market. By no measure can this be considered an orderly trade situation. American manufacturers have been put under heavy pressure. Plants have been closed, operations transferred overseas and textile investments deferred on the grounds that disruptive competition from exporting countries will not allow the necessary return on invest- ment. This trend erodes the strength of our textile industry and has potentially wide-raning consequences for the United States. is a trend to which the United States Government cannot remain indif-

It ferent. It is not our desire to choke off trade. But neither can

we permit trade to choke off our textile industry or its growth. We fully recognize the importance of this trade to the exporting countries, but while we are prepared to accept a reasonable growth in our textile imports, we are determined to ensure that it be on an orderly basis.

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