TNAG-0172-FCO40-208-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 35

(B)

countries and territories.

The present quota ar-

rangements expire at the end of 1970, three months

after the current Long-Term Arrangement, and we shall

seek the agreement of the contracting parties to their

extension for a further year.

Provided our industry becomes more efficient, we expect the replacement of

Q

intend through the change from quotas by¡ tariff to

reduce the level of our imports of cotton textiles

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 developed countries.

We would expect the trade of developing countries as a

group to be about the same or marginally less than if

the quota system were retained, although with some

re-distribution between supplying countries.

We are,

in effect, replacing one method of protection with

another.

(c) Paragraph 8 of the statement implies that in certain

circumstances, we are prepared in effect to compensate

India for the mossible loss of her cotton textile

exports to the U.K, as the result of the imposition

of a tariff. We believe that India is peculiarly

vulnerable to the effects of the re-distribution of

trade and we see no prospect of our agreeing to do the

same for any other country.

(D) The proposed rates of duty are about 6 per cent for

yarn, 15 per cent for cloth, and 17 per cent mainly

for garments. These rates are broadly in line with

those of the E.B.C. and most other developed

countries.

(E) We intend to abolish our quota system when the tariff

is introduced, reserving the right to reimpose quotas

on particular products from individual countries only

if the level of imports of cottor textiles overall

/increases