TNAG-0151-FCO40-187-Exports-of-cotton-textiles-to-Canada-1969 — Page 86

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DAILY NEWS RECORD, MONDAY, JUNE 9, 1969

RECEIVED IN

This relates to the Hong Kong / Canada

thist problem 11/26/6

Shirting Mills Opitmistic

30)

On Canadian Trade Revival

By SIG SCHEIER

NEW YORK. Shirting mills are hopeful of a revival of busi- ness with the Canadian market as a result of liberalized tariffs in Ottawa.

Sales to Canada declined to a trickle a few years ago, when shirt production shifted from cottons to blends. The higher tariffs on the latter fabrics, as compared with cottons, put American mills out of the running.

But a recent ruling by the

Canadian Finance Ministry (DNR, May 14, p. 15), permits shirt makers to import 25 per cent of their fabric needs duty- free, provided the balance is ob- tained from Canadian sources.

This change should work to the advantage of U. S. exporters, at the expense of Japanese and Hong Kong suppliers, it is felt. Without a 35 per cent duty to contend with, exporters here say they can do a substantial busi- ness in fashion goods to Canada.

A number of technical prob-

Clinton Mills Superior Quality Fabrics are not for everybody...

REGATRY No.51

(only for people who want more for their money)

24 JUN 1969 CLINTON COTTONS, INC. 111 WEST 40TH ST., N. Y. C. • (212) 565-7300 NICKG

But

lems remain to be worked out under the new setup. Canadian buyers are beginning to look over U. S. shirting lines. Substantial orders are expected to be written by the time of the AAMA show in Miami, June 18- 21.

Piece - dyed polyester / cotton broadcloths will be one bene- -ficiary. They're selling in this country at 45 cents for base colors, but the price in Canada has been 66 per cent higher, considering duty, exchange dif- ferential and freight.

Colored yarn shirtings, how- ever, are expected to show the major gains because these goods are not produced in Canada. U. S. plaids have been offered in Canada at a prohibitive 96 cents landed, compared with 60 cents on the domestic market.

Gingham suppliers here are quoting September-October de- liveries to Canada. This is much longer than the quick shipments Canadians used to receive years ago on printed cottons from this country. But it's substantially better than yarn-dyed deliveries from the Far East.

In addition to the new rebate provisions for shirtings, Canada has accelerated its tariff cuts un- der the Kennedy round. (DNR, June 5, p. 33). But this im- mediate reduction of 3 per cent in existing duties is expected to be of negligible benefit to Ameri- can exporters, as it fails to make U. S. goods more competitive with Canadian or Far Eastern makes.