Fourthly, following the agreement of Hong Kong, Japan, S Korea and
Taiwan to restrict their exports of non-cotton textiles to
the United States to quantities some 30% below existing levels of trade, there is a risk (except in the case of Japan, which restricts her textile exports to the UK and the EEC) that the other three Asian suppliers will divert goods from the US to
European markets.
Since looms which weave pure man-made fibre
and man-made fibre/cotton blends are also equally capable of
weaving pure cotton, the diverted goods will not necessarily
come in the form of non-cottons; mills which switched from
cotton to man-made fibre when the latter had unrestricted
entry into the US market may to some extent switch back to
cotton when producing for the unrestricted UK market.
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