§ Mr. Maddenasked the Secretary of State for Trade if he will make a statement on the renegotiation of the Multi-Fibre Arrangement.
§ Mr. DellThe EEC Council of Ministers agreed on 20th December that the Community should renew the GATT Multi-fibre Arrangement (MFA). It also approved the terms of the bilateral agreements negotiated with 31 supplying countries which are now being finalised. The Community's application of the MFA to these countries is dependent on the signature of these agreements. Details of quota coverage in the new agreements were published in a Notice to Importers on 6th January.
The new agreements will provide the British textile industry with a far greater measure of protection than has been possible in the past. Overall limits have been set for the most sensitive products, and the agreements include much more comprehensive quota coverage for other products. Growth rates are in general lower than the 6 per cent. minimum which applied in the past, and vary inversely 713W with market penetration. We have also obtained effective safeguards which will operate automatically to prevent new products now unrestricted from disrupting the United Kingdom market. Virtually all our low-cost imports of textiles and clothing are now covered by quotas or automatic safeguards. I believe the new agreements will provide our industries with the more stable long-term environment which they need to plan for the future.