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effective choice is therefore between a continuation of the quotas
in some form and a tariff on the lines of paragraph 2 (1) above.
10.1 The Textile Council came down in favour of a tariff principally because: (1) they recognised that the effectiveness of the quotas
was likely to diminish au consumption of cotton textiles declined;
(ii) a tariff would concentrate imports in sectore where the United
Kingdom industry was less efficient, with consequent encouragement
of the production of those goods for which our industry has a relative advantage and (iii) the margin of protection under a
tariff is both stable and predictable. Thus a tariff on imports
from the Commonwealth in the view both of the Textile Council and
the Board of Trude, would restore confidence in the industry in a
way which quotas (as described in paragraph 7 above) have not
succeeded in doing and would stimulate the investment required to
make the industry competitive.
11.
Other advantages seen for the tariff solution are that:
a) the stimulus to efficiency would be greater under the tariff: there would be increased pressure to close down the inefficient units;
b) increased revenue from the tariff of at least £10 n. could be expected;
c) the landed price of imports would be lower/under the quota system while prices to the consumer might be about the same or slightly lower;
because of provided the
d) the estimated gain to the balance of trade in cotton téxtiles (largely as a result of the reduction in prices) is put at 212 Millio. per antuk. the of mamente could be suportat bol.or than thio
gain to tho i Lunce the better distribution of national resources imposition.ct the tariff ölü not result in a loss of exports as a result of retaliation and/or the reduction in purchasing power of the developing countries generally. Any such losacs cannot be quantified.
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