§ Mr. Nicholas WintertonTo ask the Chancellor of the Duchy of Lancaster (1) what steps have been taken by his Department to ensure the continuation of the current system of national quotas for the multi-fibre arrangement after the introduction of the single European market in 1992;
(2) what estimate has been made by his Department of the impact which would result upon the United Kingdom textile and clothing industries from the possible introduction of a community quota system for the multi-fibre arrangement after the introduction of the single European market in 1992;
(3) what representations he has received and what discussions he is holding with the United Kingdom textile industry with regard to the consequences of the introduction of a community-wide quota system for the multi-fibre arrangement.
§ Mr. Alan ClarkIt is not easy to estimate the impact of the possible phasing out of member states' shares of Community quotas under the multi-fibre arrangement, although I have received a number of representations expressing concern. The report which we have commissioned from Professor Silberston on the multi-fibre arrangement and the United Kingdom economy will address this issue.
The arrangements which will apply after 1992 are not at present determined. The European Commission has taken a general view that individual member states quotas or shares of European Community-wide quotas cannot continue after the introduction of the single European market. How far this will extend to the treatment of textiles and clothing has yet to be settled. The existing Community bilateral agreements with major multi-fibre 41W arrangement textile suppliers already allow for some automatic and increasing transfer between member states of each member state's share of the Community quotas. These arrangements work well. However, the present extension of the multi-fibre arrangement expires in 1991.
The future of the multi-fibre arrangement—and other textiles restrictions—is a matter for negotiation within the current Uruguay round of multilateral trade negotiations in GATT, which is due to conclude in September 1990. It is still too early to say what the outcome of these negotiations will be.
§ Mr. Nicholas WintertonTo ask the Chancellor of the Duchy of Lancaster if he will make a statement outlining the progress which has been made so far in the current Uruguay round of general agreement on tariffs and trade multilateral trade negotiations with regard to the textile and clothing industries.
§ Mr. Alan ClarkThe negotiating group on textiles and clothing has yet to enter detailed and substantive negotiations on the "modalities" for the return of the sector to GATT rules. At the mid-term review, which concluded with the meeting of the Trade Negotiations Committee at the beginning of this month, it was reaffirmed that the process of reintegration of the textiles and clothing sector should be on the basis of strengthened GATT rules and disciplines and that the modalities should among other things cover the phasing out of the multi-fibre arrangement and other restrictions inconsistent with GATT, together with the timing and progressive character of the process of integration. The TNC text preserves existing rights and obligations under the present MFA and calls upon all participants to try to improve the trade situation. Lengthy substantive negotiations can now be expected with a view to reaching an agreement within the time frame of the round.