§ Mr. KirkwoodTo ask the President of the Board of Trade if he will carry out an examination of the effect on the United Kingdom textile industry of the double pricing by overseas countries of raw materials such as cotton and cashmere; if he will consider the compatibility of such measures with GATT; what remedies exist to protect the United Kingdom industry from their effect; and if he will make a statement.
§ Mr. Needham[holding answer 8 March 1993]: Although double pricing of raw materials is incompatible with GATT rules, developing countries which are GATT members are allowed derogations from the rules. Since many of the countries which practice double pricing fall into this category, it is not possible to take action against them. However, the draft GATT Uruguay round textiles agreement contains provisions which, if implemented, will make it easier to act against any member country on this issue. Remedies under GATT are available only if the country practising double pricing is a GATT member. If not, a remedy may be sought bilaterally through the appropriate mechanisms of any bilateral agreement that exists between the country concerned and the European Community.