4
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At the
The GATT Textiles Committee met in Geneva from 5 24 July. This meeting ad been delayed while the Community worked out its detailed objectives. opening session the Commission spokesman (Tran Van Thinh) made a full statement of the Community's negotiating objectives. Formal meetings were then suspended and three weeks of intense behind the scenes activity began. This concentrated on attempts to agree a text, to form part of the Chairman's summing up of the Textiles Committee's deliberations, which would satisfy those who wanted the MFA renewed unchanged (the US and most of the exporting countries) and those who wanted changes (the EEC and most of the importing countries). These attempts finally came to nothing. The Americans proposed one text which was supported by the majority of participating countries, including Hong Kong, Japan, South Korea and ultimately the Commission (with formal protests by the French). This
indicated the possibility of a flexible approach in the bilaterals to the Community's problems and deferred the decision about renewal
until December. A rival text
which was totally unacceptable to
text
the Community, was proposed by Brazil and India, supported by Egypt. Other delegations, including Canada, could not support either text.
5 The Textiles Committee therefore adjourned with no firm conclusions about renewal. The text of the Chairman's summing up is in MIFT.
This was a very disappointing result for the Americans who are as anxious as ever for the MFA to be renewed without change well before the..end of the year. They have already concluded one bilateral (with Hong Kong) which according to press reports is tougher than their present one, and are proceeding with negotiations with other
suppliers.
6 For the EEC and the UK the lack of conclusions in Geneva is not entirely unsatisfactory. Ministers here have made it clear to the Commission (at a meeting between the Secretary of State for Trade and Commissioner Davignon) that the Community's agreement to renew the present MFA unchanged must depend entirely on the outcome of the bilateral negotiations. The Commission have privately given us this assurance but in order to reinforce the point and to reassure our own industry, Mr Dell has asked for a public statement to this effect as soon as
possible after the summer break.
Next Steps
7 The Commission are now preparing bilateral mandates and expect to complete these by mid-September. They then propose to conduct bilateral negotiations
with main suppliers in Brussels in October/November. We do not have details of
the proposed batting order but probably the first negotiations will be with those countries recently visited by Tran and his Commission team (India, Pakistan, Hong Kong, South Korea, Thailand and Brazil). Everything depends on the outcome
No comments yet.
Private notes are available after approval.