TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 185

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there is also a global quota for all other Developing

(i.e. low cost) producers (apart from Portugal);

there are no quantitiative restrictions on imports

from developed countries. Imports from the

Commonwealth enter duty free; the m.f.n. rates are

7 per cent on yarn, 174 per cent on cloth and 20 per

cent on most made-ups. Knitted cotton textiles,

principally under-garments, sweaters and leisure

shirts are not subject to quota.

United Kingdom Tariff

3. The present British system of import quotas on

cotton textiles is complicated and has become

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increasinly unsatisfactory. increasingly

As a result of a study

of the United Kingdom textile industry carried out in

March 1969, the Textile Council recommended, inter

alia, that the existing system of quotas should be

abandoned as being too unpredictable and uncertain in

its effects, and instead a tariff should be imposed

on imports of cotton textiles from the Commonwealth.

This was accepted by the Government and Mr. Crosland

in July, 1964

announced that, with effect from 1 January 1972, there

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would be no quantitative restrictions on imports from

the free world, but Commonwealth cotton textiles

would attract a duty of 85 per cent of the m.f.n.

rate (i.e. 61 per cent on yarn, 15 per cent on cloth

and 17 per cent on most garments). Imports of

cottons from EFTA and the Irish Republic would continue

tinue to be duty free because of our free trade area

commitments. This policy has recently been reaffir

affirmed by the present Administration.

4. The effect of this change of policy should be

to reduce imports of cotton textiles from developed

CONFIDENTIAL

/countries

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