G.F. 3.3
The Future of the FA
Introduction
The Arrangement Regarding International Trade in Textiles, commonly known as the Multifibre Arrangement (FA), which came into force on 1 January 1974, expires on 31 December 1977.
2.
the
At present over 60% by value of Hong Kong's exports of textiles and clothing are subject to restraint under bilateral agreemento concluded under the MFA with six trading partners USA, the European Community, Sweden, Norway, Austria and Finland. The agreement with the USA expires on 30 September 1977 and the others at the end of 1977. All of them will have to be re-negotiated before their expiry dates. The agreements with the USA and the Community, to which the bulk of our textile and clothing exports go, ought to be re- negotiated well before their expiry dates so that the trade - both here and in the importing countries may have some certainty about the conditions for exports to these markets in 1978.
3.
Hong Kong supports the extension of the MFA without modification, but only because the alternatives are even less desirable. Although the MFA is not without its shortcomings, it is a finely balanced package which provides an acceptable framework within which trade in textiles can be conducted with a reasonable amount of certainty. For any participating country or group of countries to seek improvements which are desirable from its own point
We believe that of view will inevitably re-open the whole package.
a quick decision now on extension without modification is desirable in order to remove the uncertainties (which will ineivtably become more of a problem as 1977 advances without a decision) about the framework for international trade in textiles in 1978 and beyond.
4.
No decision could be reached at the Textiles Committee Meeting held in Geneva in December 1976 on the future of the MFA. The USA spoke in favour of an immediate agreement to extend it without change and was supported by most other participating countries, but the Community indicated that it wanted the MFA modified. Because Member States had not reached a consensus, the Community did
not state what modifications it wanted but nevertheless indicated five
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