§ Mr. Gerald Howarthasked the Secretary of State for Trade and Industry if he will report on the outcome of the European Community-China negotiations on textiles.
§ Mr. ChannonOn 29 March the Commission initialled an agreement renewing for five years the Community's textile agreement with China. In particular it revises import quotas for Chinese textiles and clothing products. It safeguards the principal United Kingdom interests. A strict inner limit on the import of wool and cashmere jumpers has been maintained withing the relevant quota, as has the guaranteed supply of raw cashmere. Separate restraints have been agreed for finished and unfinished medical gauze. Provisions against possible fraud and sudden surges in the trade have been introduced. The14W arrangements for the possible setting of new import quotas for products not previously restrained have been modified and brought into line with those in the bilateral agreement negotiated by the Community under the multi-fibre arrangement.
The new United Kingdom quotas fall within the global ceilings, which were previously laid down by the Council, restricting total access of low-cost imports for the most sensitive products. The agreement is thus a satisfactory one for the United Kingdom, although it still remains subject to confirmation by the Council. I shall support that endorsement.