TNAG-0303-FCO40-339-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 25

TEXTILES FROM JAPAN AND THE SINO-SOVIET COUNTRIES

45. Under our trade agreements with Japan and the Sino-Soviet countries, these countries restrict their cotton and non-cotton textile exports to the UK. These restrictions will continue in 1972.

Background

46. It was always our intention to maintain controls on Sino- Soviet textiles. The decision to retain quota controls on cotton textiles from the developing countries has now made it impossible for the Sino-Soviet countries to complain that their cotton textiles alone have been singled out for quantitative restriction.

47.

As regards Japanese cotton textiles, we originally made an offer to the Japanese (as part of the package in our bilateral negotiations on the trade agreement) to release than from their undertaking to control cotton textile exports, when quota controls on the developing countries' cotton textiles came to an end on 31 December, 1971. Since restrictions on the developing countries are not now coming off, and since no package settlement on the trade agreement has been reached or is in sight, there is now no commitment to liberalise Japanese cotton textiles. 7

NON-COTTON TEXTILES

48. If asked whether the Government will take action to restrict rising imports of non-cotton textiles from low-cost sources, the Minister should say that the Government intend to pursue discussions with other interested Governments as to whether further international arrangements might be necessary or desirable to provide safeguards against market disruption in non-cotton textiles. In the meantime, we are ready to act

promptly and effectively having regard to our GATT rights and obligations if serious disruption from imports of non-cotton textiles should occur in the British market.

49. In the longer term, we hope to discuss with our partners in the enlarged European Community the formulation of a textile trade policy which takes account equally of the interest of developing countries in expanding their exports of textiles, of the need of the textile industries here and elsewhere in the Community to evolve on a basis of genuine competitiveness and of the right of efficient producers and their workers to safeguards against disruptive imports.

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