§ Mr. Redmondasked the Secretary of State for Trade and Industry if he will make a statement on the further progress of discussions with the European Economic Community about the import of textiles in 1973.
§ Mr. Anthony GrantThe European Commission has sought a mandate from the Council to renegotiate its agreements under the GATT Long-Term Arrangement on cotton textiles with Japan, Hong Kong, India, Pakistan, South Korea and Egypt to take account of the enlargement of the Community. The agreements provide for these countries to restrict their exports of cotton textiles to member countries of the Community. They apply until 30th September, 1973, except for Hong Kong and Korea, where the agreements last until 31st December, 1973. A comparable arrangement would be sought as regards exports of cotton textiles from Taiwan.
The new arrangements would extend as far as practicable to trade in cotton textiles between the seven countries and the United Kingdom, Denmark and Ireland, the pattern of restraints in the Community's existing agreements. The practical effect would be to limit exports to the three acceding countries at approximately the same levels—with appropriate allowance for growth—as under the bilateral arrangement currently existing between the countries concerned. The categorisation of the quotas and arrangements for flexibility between groups and categories would as far as possible be rearranged to bring them into conformity with those in the Community's agreements, again without substantially changing their existing effect.
The products to be covered would in large measure be the same as under the present bilateral arrangements, including in the case of the United Kingdom cotton yarn. The negotiations would take place as soon as possible and in any case before the end of this year.
The United Kingdom will retain existing restraint arrangements on cotton textiles with countries other than the seven covered by the Community's agreements under the Long-Term Arrangement.
470WThe arrangements after the expiry of the current Community agreements will he determined in the light of the review of the Long-Team Arrangement to be conducted by the contracting parties to the GATT before the present term of the arrangement expires on 30th September, 1973.