TNAG-0242-FCO40-278-Conduct-of-Hong-Kong-commercial-relations-1970 — Page 47

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PROTOCOL

RELATING TO THE RESERVATION ATTACHED BY THE GOVERNMENT OF CANADA

TO ITS ACCEPTANCE OF THE LONG-TERM ARRANGEMENT

The Government of Canada, in accordance with the procedure which was agreed by the Cotton Textiles Committee at its meeting from 29 January to 9 February 1962 and which is set out in paragraphs 32 and 33 of the Record of Understandings reached at that meeting, has attached a reservation to its accep- tance of this Arrangement in the following terms:

"In accordance with the procedure agreed by the Cotton Textiles Committee, the Canadian Government enters a reservation to the effect that Canada, as a country which complies with the criteria:

(i) that in the decade preceding the entry into force of the Arrangement it had

experienced a substantial contraction in its cotton textile industry, and

(ii) that it was importing a substantial volume of cotton textiles, in particular from the less-developed countries and territories and Japan, in relation to its own production of cotton textiles,

accepts no obligation to increase automatically, under the provisions of para- graphs 2 and 3 of Annex B of the Arrangement, access to the Canadian market for each item subject to restraint.

"It is nevertheless the intention of the Canadian Government to continue to pursue a policy which, while avoiding disruption of the Canadian market for sensitive cotton textile items, will permit an orderly expansion of the trade in cotton textiles on fair and reasonable terms when market conditions in Canada warrant such increases.'

""

The other parties to this Arrangement have accepted the Canadian reservation and have agreed that the reservation should be included in a Protocol annexed to this Arrangement.