Socks (Hansard, 27 July 1989)

§ Mr. Haynes
To ask the Chancellor of the Duchy of Lancaster what information he has on the increase in the level of sock imports from Indonesia(a) between 1987 821W and 1988 and (b) between 1 January and 30 April 1989; and if he intends to support the introduction of the multi-fibre arrangement quota on socks originating in Indonesia.

§ Mr. Redwood
Imports from Indonesia of socks and certain other hosiery products covered by multi-fibre arrangement category 12 rose from 2,365,000 pairs in 1987 to 10,767,000 pairs in 1988, an increase of 355 per cent. In the first four months of 1989, 3,276,000 pairs of these products were imported, compared with 1,095,000 pairs in the same period in 1988, an increase of 199 per cent. These imports accounted for 4.4 per cent. of the United Kingdom market for category 12 products in the first quarter of 1989, compared with 1.5 per cent. in the same period in 1988.
My Department is currently considering a request from the Knitting Industries Federation for restraint action against these imports under the terms of the EC-Indonesia bilateral textiles agreement. United Kingdom producers currently hold almost 70 per cent. of a domestic market which has been growing and I will need to take this and other factors into account when assessing their case. In particular, it will be necessary to demonstrate clearly that the imports from Indonesia are causing or threatening to cause disruption to the United Kingdom market before a decision could be taken to submit the case to the EC Commission for consideration by the Community.

§ Mr. Haynes
To ask the Chancellor of the Duchy of Lancaster what information he has on the level of sock imports from Turkey(a) between 1987 and 1988 and (b) in the first four months of 1989; and if he intends to invoke the safeguard mechanism in the European Community-Turkey agreement in this respect.

§ Mr. Redwood
Imports from Turkey of socks and certain other hosiery products falling within multi-fibre arrangement category 12 rose from 6,775,000 pairs in 1987 to 13,692,000 pairs in 1988, an increase of 102 per cent. In the first four months of 1989, 3,542,000 pairs were imported, compared with 2,544,000 pairs in the same period in 1988 an increase of 39.2 per cent. These imports accounted for 4.8 per cent. of the United Kingdom market for category 12 products in the first quarter of 1989, compared with 3.4 per cent. in the same period in 1988.
In order to invoke the safeguard mechanism of the EC-Turkey association agreement, it is necessary to provide evidence to the EC Commission and Council which clearly demonstrates serious injury as a result of imports from Turkey. Such evidence is not available at present. However following representations from the Knitting Industries Federation, officials are monitoring the situation closely.
Certain categories of knitwear and clothing imports from Turkey are covered by informal voluntary restraint arrangements agreed between Turkish garment exporters associations and the EC Commission. The United Kingdom has already taken the opportunity of consultations within the framework of these arrangements to ensure that the EC Commission raised our concerns about sock imports with the Turks. Consultations will continue in September.