TNAG-0629-FCO40-777-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1988 — Page 143

-2-

uncertainty still surrounding the future framework for international textiles trade, which was causing serious concern. Certain developed countries, especially the EEC, had sought changes in the Arrangement; while this had not been clearly spelt out by all, it seemed that to the extent they had been hinted at by the EEC, a global quota for all 'disruptive' and 'potentially disruptive' imports,

and fixing of growth rates under Annex B to the Arrangement in inverse proportion to the degree of 'import penetration', were being contemplated. These were designed specifically to hit at imports from developing country exporters, and had therefore to be firmly and unequivocally opposed. He stressed the importance of a united front of the exporting developing countries concerning the MFA.

7.

Mr. Prok Amranand, Chief, International Trade Division of ESCAP, in referring to ESCAP's role in the developments leading to the Seminar, stated that at the MTN Seminar organised 15 months ago in Hong Kong jointly by the Commonwealth Secretariat and the ESCAP Secretariat, the problems of the developing countries had been discussed, and a recommendation had been made that a specialized seminar on textiles should be organised. Consultations were accordingly arranged by the ESCAP Secretariat on a regular basis. In November 1976, informal consultations were renewed in Geneva and the participating countries formulated a common stand. Such consultations were required to be backed up by technical seminars such as this. He offered the maximum cooperation from ESCAP in such endeavours.

8. The Seminar then agreed that the provisional agenda which had been circulated earlier be adopted as it had been framed. (A copy of the agenda for the Seminar, as adopted, is at Annexure 2).

9. By way of providing the background to the discussion on item 1 of the agenda, namely, Review of the Present State of International Trade in Textiles, Mr. Abbas of the UNCTAD Secretariat drew attention to the UNCTAD paper entitled "Review of International Trade in Textiles from the standpoint of developing countries", outlining recent trends in textile trade. According to the relevant statistics, developed countries accounted in 1974 for 67.9% of world exports in textiles and clothing, and developing countries (with around $10 billion of exports) for under 23%. Even out of the latter figure, exports to developed countries amounted only to some $7 billion, the rest being to other developing and to socialist countries. The bulk of the imports of developed market economy countries in 1974 came from other developed countries, and even the increase in the total trade of developed countries in textiles during the period 1970-74 was more than double the total exports of these products from developing countries.

../3-