Multi-fibre Arrangement (Hansard, 21 October 1986)

§ Mr. Alan Clark

Negotiations to renew the multi-fibre arrangement were concluded on 1 August. The new protocol provides for an extension of the arrangement for five years. Talks on the renewal of the Community's bilateral agreements are also well advanced: provisional agreement has been reached on 24 bilateral agreements and talks are in progress on the remaining agreements. The terms of the agreements will be published when all the negotiations are completed; they are within the terms of the mandate agreed by Community Ministers last March.

The new protocol and the agreements negotiated so far meet the United Kingdom objectives outlined to the House in May 1985 and in February 1986. The new agreements will provide continued effective protection for the sensitive sectors of our industry, while providing some elements of liberalisation. In the new protocol special treatment is provided for the least developed countries and this has been reflected in the bilateral agreements negotiated by the Community. The protocol states that all participants should contribute towards liberalisation of trade, and the Community has taken positive account in the bilateral negotiations of the degree of openness of the supplier country's own markets. A further new element in the protocol, which was included in the light of problems experienced particularly by the United States, is that restrictions may be introduced on products of certain new fibres (eg ramie, silk blends, linen) where these are directly competitive with MFA products, and are causing or threatening market disruption. The protocol provides that consideration should be given to the removal of consistently under utilised quotas, and the Community has done this. The Community has also provided a degree of 784W liberalisation in respect of children's clothes in the bilateral agreements. I have kept in close and detailed touch with the industry and other interested parties.