DSR 11C
BACKGROUND
The Commission's Approach
8. Following the check in the negotiations for the renewal
of the multifibre arrangement in Geneva in July it was
agreed within the Community that work should now concentrate
on the rapid conclusion of bilateral agreements between the
Community and its main supplying countries. It has been
agreed that the Community will take a decision on whether
or not to resign a renewed MFA only when it has judged
the results of these bilateral negotiations. The Commission
have now produced a programme of action for the bilateral
negotiations, which is remarkable for its rationality and
comprehensivity.
9. The Commission's approach is based on the concept of the conclusion of bilateral agreements with all the Community's
suppliers. These agreements will cover all textile products.
Individual textile agreements will be concluded with the 30
main supliers. The rest will be lumped together and given a basket quota, with inner steps specifying that no one supplier
may take more than a certain percentage of the basket quota.
In a similar fashion, the textile products concerned will be
divided into four groups according to their degree of
sensitivity for the Community. Global limits applying to
all low cost suppliers will be set for each group. Growth
rates will be minimal for the most sensitive group of products
and will be above 6% for the least sensitive group. The
base levels which will be offered tothe suppliers will be in
accordance with the Community's agreed aim of stabilisation
of import penetration at 1976 levels. In order to leave
room for newcomers and small suppliers, and also to avoid cutting
back below 1976 levels for the poorest developing countries,
/ cuts
D 107991 400,000 7/76 904 953
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