TNAG-0152-FCO40-188-Exports-of-cotton-textiles-to-Canada-1969 — Page 112

COTTON TEXTILES

LONG TERM ARRANGEMENT

ANNEX 1

In 1961 the U.S. Administration were under pressure from their

domestia industry to take action against inoreasing competition from low-

oost cotton textiles. There was, of course, no way under the G.A.T.T. for the U.3. to take discriminatory action, and in order to avoid pressure from Congress to act inconsistently with their G.A.T.T. obligations, the U.3. Administration took the initiativo in oalling a meeting between the major importing countries and the low-cost exporting countries to deal with the problem on a comprehensive international basis.

2. As a result, in agreement was reached, to run for a period of 12 months, which provided for the control of cotton textile imports that were causing (or threatening) market disruption, and also for some increase in the quotas of those partioipating countries which still

"maintained them. This agreement was intended as a holding operation

only, pending the conclusion of an agreement covering a longer period, The G.A.T.T. Cotten Textiles Committee was set up both to administer the

short term arrangement and to draw up the text of the long term

arrangement.

3. ́In October 1962 the Long Term Arrangement on Cotton Textiles came into operation, for an initial period of five years, It was subsequently extended to 30th September 1970. Its chief objectivus (which were much the same as its short term predecessor) were:

(a) · to strike a balance between the need of developing countries

for growing export markets.

(Artiole 2 of the Arrangement provided that countries maintaining restrictions inconsistent with the G.A.T.T. should relax them

progressively each year and undertake to increase quotas by stated percentages by the end of the validity of the Arrangement.)

F

/(b) To