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Products not immediately under restraint are covered by basket arrangements with an automatic "trigger" mechanism for introducing new quotas where imports of these products reach certain specified levels (see paragraph 7(iv) for further details). For the major suppliers, most products are under quota from 1 January; in other cases the agreements contain a mixture of quotas and triggers. In the case of six smaller suppliers (Bangladesh, Haiti, Indonesia, Iran, Guatemala and Uruguay) which account for less than 2% of UK low-cost imports, there will be no immediate quotas. However the agreements will contain trigger provisions as described above for all products.
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The most important features of the new agreements are as
follows:
B
(a) Quota coverage
Quota coverage for particular suppliers and individual products is now much more comprehensive than in the past. Details were published in a Notice to Importers on
6 January, a copy of which is at Annex C. Under the previou. bilateral agreements about 70-80% of UK imports from the suppliers concerned were under quota. Quota coverage in the new agreements is about 90% overall, and for major suppliers such as India, Pakistan, South Korea and Taiwan, the figure is over 90%.
For the eight most sensitive products (cotton yarn and fabrics, spun synthetic fabrics, knitted shirts and T shirts, jerseys and pullovers, trousers, woven shirts, and blouses) all low-cost imports are now restricted within global limits for the Community as a whole and for each member state. These 8 products accounted for over 60% of total UK imports in 1976. Initial quota coverage for other sensitive products, although not subject to global ceilings, will nevertheless be very wide.
(ii) Growth rates
The MFA stipulates a minimum annual growth rate as a rule of 6%. While individual suppliers will continue to get an overall growth rate of around that level, the growth rate for particular sensitive products will be very much lower and in many cases less than 2-3%.
For products in Group 1 the new agreements have kept within the mandate ceilings with two exceptions and in some cases the global totals agreed are in fact lower than the mandate. The exceptions are cotton yarn and
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