LORD GORONWY-ROBERTS'S VISIT TO HONG KONG:
BRIEF NO. 9:
EEC:
11-17 JANUARY
TEXTILE AGREEMENTS AND THE GENERALISED SCHEME OF PREFERENCES
1.
As the textile and clothing industries account for nearly 40% of Hong Kong's total exports, she has a particularly close interest in any moves to regulate international trade in this category of merchandise.
2.
The international textile trade has for some years been governed by provisions made under the auspices of GATT. The lates of these is the GATT Multi-Fibre Textile Arrangement (IFA), which came into effect on 1 January 1974, and runs for four years. The MFA recognises that special conditions apply to the world trade in textiles and that it is necessary to formalise the operation of restraints to allow for flexibility, legitimate growth and the need for consultation between low-cost suppliers and importing countries. Important features of the MFA are that it provides that no new restraints shall be introduced unless justified by market disruption and that import quotas shall be increased at a reasonable rate. Hong Kong has acceded to the MFA which is of great importance to her as it provides the basis on which she hope: to conclude bilateral agreements with the importing countries which constitute her principal markets. Among these the EEC is second in size and importance only to the United States.
Textile Agreement with the EEC
3.
Negotiations for a bilateral textile agreement between the EEC and Hong Kong are expected to open shortly. On the EEC side consideration of the "mandate" for these negotiations has been going on for many months and final agreement among the Nine has still not been reached.
4.
The British Government made agreement to any "mandate" conditional on a prior understanding between EEC member states on a scheme of "burden-sharing". The essence of this is that
CONFIDENTIAL
/traditionally
No comments yet.
Private notes are available after approval.