TNAG-0152-FCO40-188-Exports-of-cotton-textiles-to-Canada-1969 — Page 40

0003230

G.F, 323

CONFIDENTIAL

Ref. CR/EIC. 191/5

[16 JUL 1969

TEXTAB Inf/5/69

App.I(A),

B&C

MEMORANDUM FOR THE TEXTILES ADVISORY BOARD

Exports of Textiles to Canada:

Canadian Restraint Agreements with Third Countries

(C.A.B. Memoranda 430 and 439 reported on

Canada' s restraint agreements with

South Korea,..Taiwan and Japan vis-a-vis

those with Hong Kong. This memorandum

brings up to date the above papers and

is an appraisal of the latest agreements

concluded between Canada and Hong Kong,

Taiwan, Singapore, Malaysia, Japan and

South Korea, and draws attention to

differences in the terms between the

Hong Kong/Canada agreements and

Canada's other agreements with

Hong Kong's main competitors.)

Introduction

Hong Kong has two restraint agreements with Canada under the Cotton Textiles Arrangement: one for cotton garments and towels under Article 3. (Appendix. I(A)) and the other for cotton piecegoods under Article 4 (Appendix I(B)). Both agreements relate to items of chief weight cotton in accordance with the definition of cotton textiles in Article 9 of the C.T.A. In addition, Hong Kong has given an unilateral under- taking (Appendix I(C)) to restrain exports of polyester and polyester/cotton shirts, blouses and trousers outside the terms of the C.T.A.

2.

Canada has also concluded textile restraint agreements with Taiwan, Singapore, Malaysia, Japan and App.II,III South Korea. The texts of the agreements with Taiwan, III(1),IV Singapore, Malaysia, Japan and South Korea are at

Appendices II, III, III(1), IV and V respectively.

& V

3.

Canada's agreement with Taiwan which covers both cotton and synthetic garments was notified to the G.A.T.T. as being pursuant to Article 3 and 6(b) of the C.T.A. The latter Article is designed to prevent circumvention of the C.T.A. by the deliberate substitution for cotton of directly competitive fibres; but in our opinion this Article may only be invoked if it can be shown that such substitution has taken place solely in order to circumvent the provisions of the Arrangement.

/It cannot

CONFIDENTIAL