BACKGROUND NOTE
TEXTILES
1.
Both the GATT Multi-Fibre Arrangement (MFA) and the bilateral agreements concluded between the EEC and its main low cost textiles
The suppliers under its auspices expire at the end of 1977. Community is negotiating a new series of bilateral agreements with these suppliers prior to signing a renewed MFA. The Commission, negotiating on behalf of the EEC, has been given a tough mandate, which provides for the negotiation of quotas on the eight most sensitive textile products, to keep imports below a global ceiling. This mandate has the full backing of the British Government.
2.
Rather than imposing damaging cuts on the poorest developing countries, the Community has elected to demand reductions on 1976 levels of imports from Hong Kong, South Korea and Taiwan. Hong Kong has attacked this proposal as merely giving away her historic quota
After a access to the Community market to rival suppliers. break-down in negotiations on 11 November, the Commission threatened to redistribute Hong Kong's quota amongst the other suppliers.
3.
Over the last weekend the disagreement between Hong Kong and the EEC came to a head, with the Commission threatening to impose unilateral quotas on Hong Kong, as provided for in their negotiating mandate. British efforts persuaded Hong Kong to agree to return to the negotiating table without formal preconditions on 21 November, but the outcome is still uncertain.
one.
4. Being both a strong and public supporter of the Community's tough negotiating mandate and the authority ultimately responsible for Hong Kong, the British Government's position is a very difficult There is a feeling in Hong Kong that Britain has not fulfilled her obligations to the Colony. Her Majesty's Government has, in fact, done its best both to provide the necessary protection for the British textile industry and to ensure Hong Kong's long-term access to the European textile market.
Page 165Page 166
No comments yet.
Private notes are available after approval.