§ Mr. Juddasked the Secretary of State for Trade and Industry what arrangements he is making to retain the quotas for the cotton textiles from developing countries at their present level in the event of harmonization of Great Britain's trade relationships with those of the European Economic Community.
§ Mr. RidleyDiscussions are now in progress with the E.E.C. about textile imports into the enlarged Community from 1973 onwards. Generally, we shall retain our existing rights to control imports of cotton textiles from developing countries; and there are already Community arrangements with certain countries for restraining their exports. The harmonisation of the two systems, which will inevitably be a gradual process, will take into account on the one hand the needs of the textile industry in the United Kingdom and E.E.C, and on the other hand the responsibilities of the enlarged Community to the developing countries.
§ Mr. Juddasked the Secretary of State for Trade and Industry whether he will make a statement on the effect of the new import duties on cotton textile imports from developing countries on the price of cotton textile goods.
§ Mr. RidleyOnly goods from Commonwealth countries are subject to the new duties; the effect on prices will take time to work through and is liable to be obscured by other market factors. Nevertheless, the immediate effect of the decision appears to have been limited, since the wholesale price index for cotton cloth rose by less than 1 per cent. between September, 1971, and January, 1972.