TNAG-0391-FCO40-437-Restriction-on-cotton-textile-exports-from-Hong-Kong-to-the--1973 — Page 107

10.

The following are examples in the textiles field:

Rate if sales

aggregate less than $1.2mn. in

Rate:

1972:

Cotton yarns, No. 6-29

15%

5%

Cotton yarns, No. 30 and above

25%

15%

Cotton textiles, dyed in the

piece,

in the yarn or self-coloured

Cotton textiles, specially

finished or non-shrink

40%

30%

Good quality men's and women's

wear of cotton cloth

Cotton flannelette

Grey Cloth

Cotton textiles, bleached or

mercerised

35%

25%

Cotton towelling and products of

Cotton velours

Mercerised cotton hosiery

Finishing or processing of grey

cloth temporarily imported

for re-export

20%

20%

Smaller producers have tended to group themselves together (or use the services of an export house) in order to achieve the minimum annual shipments total of $1mn. or $1.2mn. and towards the end of the year some exporters have found it worth selling at a loss in order to reach this minimum figure and so claim the higher rate of drawback.

Over the years schemes such as those described under (a) and (b) above are understood to have been investigated by the GATT and found wanting but GATT action has never gone further than adverse comment. The UK anti-dumping legislation has also proved inoperative (cases have failed to satisfy the criterion that action "having regard to all the circumstances, would be in the national interest"). All the evidence suggests that artificial pricing schemes will continue and that Community anti-subsidy legislation will provide no relief. Quantitative restrictions have provided a partial remedy in the past and offer the only hope of partial relief for the future.