Multi-Fibre Arrangement (Hansard, 10 January 1977)

§ 7. Mr. Fletcher-Cooke
asked the Secretary of State for Trade what progress is being made in the negotiations for renewal 1031 of the Multi-Fibre Arrangement, and if he will make a statement.

§ Mr. Meacher
The first round of discussions about the future of the Multi-Fibre Arrangement took place in the GATT Textiles Committee in Geneva in December. There will be a further round of discussions at the end of February.

§ Mr. Fletcher-Cooke
Can the hon. Gentleman give any report, if only an interim report, on how the negotiations are going, particularly as regards spreading the load more fairly by shifting it from the United Kingdom on to other developed countries, especially European countries? Does the hon. Gentleman agree that the renegotiation is regarded by the textile industry as its last chance of survival and that if it is not taken it will face total despair?

§ Mr. Meacher
Shifting the burden on to other European countries is already being increasingly achieved under the burden-sharing arrangement of the original MFA, which is still in operation.
On the question of the renegotiation of the MFA, our main aims are protection against cumulative disruption from low-cost imports, which is the greatest weakness of the current MFA, and seeking to achieve a lowering of quota growth rates in particular circumstances. Both those and other matters were raised by the European Community negotiator and a renegotiating mandate, which will have to go to the Council of Ministers, will be drawn up ready for the meeting in February. Therefore, it will fall to all member States to put in their views.

§ Mr. Madden
Does my hon. Friend accept that the British textile industry wants the Government to adopt and maintain an extremely tough attitude in these negotiations? Does he also accept that any built-in increase in percentage terms, as we have endured in recent years, would be wholly unacceptable to the British textile industry? Is there not a need for a built-in regulator to take account of countries such as ours which have high import penetrations at times of economic recession?

§ Mr. Meacher
I am aware, and the Government are aware, of the great importance of these negotiations to the textile industry. It is because we are 1032 aware of the effect of the growth rate of 6 per cent. each year under the existing MFA at a time of recession that we have put the emphasis in the negotiations on a lowering of the quota growth rates in particular circumstances. I assure my hon. Friend that we shall place great emphasis on securing these objectives.