70 After further consideration, our general conclusion remains
that there is no disruption case justifying immediate action to
restrict imports of any product at the moment.
We would agree
however with the knitwear deputation that there is some validity
in the point they made at the meeting on 18 December concerning
the need to encourage confidence in the future of the industry
but only in those sectors where there is a prospect of viability
and growth.
80 On this basis, the best case for action is on knitted
cardigans, etc. (see paragraph 4 above) and we have since
18 December discussed in detail with our colleagues in CRE, FCO,
etc., the possibility of giving assurances to industry that if
total imports in this category reached a given proportion of the
domestic market and significant disruption of the UK industry was
demonstrated, we would be prepared to seek voluntary restraints
lown cost
on the major/ suppliers.
jorf
On the basis of these discussions we
have concluded that any such "trigger point" scheme, at a level
within reasonable reach of the current penetration, is open to
overwhelming objections.
The main arguments are that there is
no objective basis for assessing what is an acceptable level of
penetration, that such an assurance would encourage a great many
other sectors of industry to seek similar assurances, that it
similarly encourages other importing countries to increase thei
restrictions on imports, that it would be inconsistent therefore
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