Your
arrangement and we shall seek the agreement of the
extend
Them
contracting parties to the ex
extension, for a further
year.
4.
Provided UK industry becomes more efficient, we must-
expect the replacement of quotas by a tariff to reduce
the level of imports below what it would be if we
carried on with a quota system on existing lines. But
our studies suggest that the main losers should be the
developed countries. We would expect the trade of
developing countries as a group to be about the same or
marginally the same as for a retained quota system.
although with some redistribution between supplying
countries. We are in effect replacing one method of
protection with another.
5. The proposed rates of duty are about 61% for yarn,
15% for cloth, and 17% mainly for garments. These
rates are broadly in line with those of the EEC and
most other developed countries.
The
6. We intend to abolish qur quota system when the
but you will note the Prendent's reservation tariff is introduced reserving the right to reimpose
v/the
quotas on particular products from individual countries
only if the level of imports of cotton textiles overall
increases above present levels causing disruption in
our market in these products. Assuming that the LTA or
some similar arrangement is in force in 1972, the pros-
pect is that other developed countries will continue to
protect their markets with quotas as well as tariffs.
As you know, all of them import a far smaller proportion
of their consumption from the developing countries than
we do
As
7.
ん
you are aware,
The UK quota system has been strongly criticised
by many of the developing countries, including a number
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