TNAG-0304-FCO40-340-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 72

PRESS NOTICE

DEPARTMENT OF INGRA

AND INDUSTRY

December 8, 1971

COTTON TEXTILE QUOTAS

The following is the text of a statement made in the House of Commons today (December 8) by Mr John Davies, Secretary of State for Trade and Industry.

"Following a recommendation from the Textile Council in 1969 the then President of the Board of Trade announced the decision to rely principally for the protection of our own cotton textile industry upon a tariff from 1 January 1972. An order putting a tariff on cotton textile imports from the Commonwealth preference area has been laid before Parliament. It was recognised at the time that this arrangement might be

subject to adjustment if we joined the Common Market; though the Common External Tariff

approximates to the level we propose to introduce. Moreover it was made clear that

although this decision meant ending the general quota system when the tariff came into effect, recourse to quotas might be resumed if total imports rose above present levels to the extent of causing disruption of our own production of particular products.

"It was always foreseen that there would be contraction in our own industry but

that contraction is taking place in substantially changed circumstances both as to the world-wide state of the industry and as to the domestic situation where the level of

unemployment causes great concern.

"The voluntary restraints upon the export of textiles to the USA agreed with.

certain Asian countries undoubtedly place an added weight on exports elsewhere and notably to this country whose imports as a proportion of consumption are far higher than those of any other major industrial country.

"In all the circumstances I have come to the conclusion that for the benefit not

only of our own industry but also because of the stability this will give in the British market for our traditional suppliers I must retain in 1972 the present general

system of quantitative restrictions in addition to the tariff. I am fortified in taking this step by the indications I already have of the build-up of orders for next year and by the knowledge that in the rapidly changing situation affecting this industry I might not otherwise be able to take action quickly enough to forestal disruption.

"This decision has been the subject of discussion with the Governments of countries

that have been our main suppliers with a view to demonstrating that nobody's interests

would be served by a surge of exports into our market in 1972 originating from a wide range of sources. Whilst regretting the inconvenience our decision may cause them we

appreciate their understanding of our problem. We have asked those who currently

administer restrictions at the point of origin to continue to do so, whilst making it clear that should they find that impracticable we shall, undertake the task from here.

4.