TNAG-0152-FCO40-188-Exports-of-cotton-textiles-to-Canada-1969 — Page 42

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G.F. 323

CONFIDENTIAL

3 -

App.II(B)

8.

(iii) apart from sub-limits by fibre, in the case

of trousers, slacks and shorts, there are no sub-limits within garment categories in the Taiwan agreement;

(iv) apart from corduroy, there are no sub-limits for fabrics in the Taiwan agreement, whereas there are five specific categories and one basket category in the Hong Kong agreement;

(v) the overall yardage for fabrics in the

Taiwan agreement represents less than 6% of that provided in the Hong Kong agreement (0.6 million square yards and 11 million square yards respectively).

There is no swing provision in the Taiwan agreement. The Hong Kong agreement, on the other hand, provides for:

9.

(i) 12% swing between garment categories, and

(ii) 10% swing between specific fabric categòries;

and

(iii) unlimited downswing into the fabric basket

category; but

10.

(iv) swing between garment and fabric categories

is not permitted, and

(v) there is no swing into or out from the

towels category.

Although the Taiwan restraint agreement is for one year, it is known that it permits anticipation; the extent to which this is permitted is, however, not known. (The Canadians confirmed during the Ottawa consultations in July 1968 that they granted anticipation even in restraint agreements of one year currency.) Hong Kong's one-year restraint agreement on cotton' garments and towels has no anticipation or carryover prevision while that on cotton fabrics (a three-year agreement) provides for 5% anticipation and carryover. (b) Restraint on Polyester and Polyester/Cotton Garments

Details of the Taiwan restraints on polyester and polyester/cotton garments are shown in Appendix II(B). Of special note is the provision for deductions related to previous shipments. The deductions are spread over the three year currency of the agreement and are so arranged that they will result in an apparent annual growth in the applicable restraint limits. The net restraint limits for the second year, ie., commencing 10th October, 1969; which are in effect the average annual restraint limits during the three years, are 30,991 dozen shirts and 12,996 dozen trousers as compared to Hong Kong's limits for the year commencing 1st October, 1968 of 75,000 dozen shirts and 55,000 dozen slacks. The Hong Kong restraint, however, also covers blouses at a limit of 40,000 dozen and provides for a 10% swing between categories which the Taiwan agreement does not provide. Taiwan's exports of blouses to Canada during 1967 were 5,234 dozen.7

/Restraint

CONFIDENTIAL