TNAG-0628-FCO40-776-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 191

CONFIDENTIAL

(ii) "If the approach is generally accepted, but in the

event proves in practice incapable of ensuring that the internal global import ceilings are not exceeded, then the Council would similarly recognise that the

Community would have to take other measures."

In accepting paragraph 10 of the Commission's proposal,

the UK believed that the Council should ask the Commission to

work on producing a definition of the criteria for rapid action on new suppliers in the light of the surveillance data produced

by the comprehensive system to be set up.

7. The UK takes it that the word "internal" when used to describe "global import ceilings" (paragraphs ? (iii), 3 and

6 of the Commission's proposals) simply carries the implication that the ceilings will not be made public. The UK does not accept that the word "intemal" is intended to provide discretion or

flexibility for ignoring the ceiling in particular cases. The UK would be grateful if the Commission could confirm this

interpretation.

8. The UK believes that the words "at their present levels" in paragraph (1) of the Commission's proposals must be included. The Community must be quite clear that stabilisation of import

penetration for sensitive products will be at present levels.

BACKGROUND

The situation in the British Textile Industry

9. The major problem for the industry since the present MFA was

signed in 1973 has become the rapid emergence of new supplying

countries for certain sensitive textile products. These have captured a significant share of a UK market already hit by imports from the dominant suppliers such as Hong Kong. The present MFA, as operated by the Community, has not permitted

effective action against the new suppliers. We have had to

wait until they have become a serious threat before we obtained

the initiation of a cumbersome procedure which took account only

of imports from a particular country, with no regard for the

overall situation in the market for a sensitive product.

/10.