HC Deb 20 November 1990 vol 181 cc86-7W
Mr. Nicholas Winterton

To ask the Secretary of State for Trade and Industry if he will make a statement outlining the principles which are currently being adopted by United Kingdom negotiators on the future of the multi-fibre arrangement.

Mr. Sainsbury

The United Kingdom supports the EC's policy that the multi-fibre arrangement should be phased out over a transitional period after the expiry of its latest extension next year. This would be part of a general settlement of the GATT Uruguay round bringing about stronger GATT rules and disciplines and improvements in market access which will assist British textile exporters.

Mr. Nicholas Winterton

To ask the Secretary of State for Trade and Industry what assessment he has made of the effect on the numbers of jobs lost in each of the next 10 years if the multi-fibre arrangement is phased out prior to agreements being reached to tighten general agreement on tariffs and trade rules on dumping, subsidies, protection of intellectual property and increased access to markets.

Mr. Sainsbury

The study of Professor Silberston for my Department concluded that the termination of the MFA would lead to job losses of between 16,000 and 33,000 in the textile and clothing industry. It was based on the assumption of animmediate end to the MFA, but did not specify over what period the jobs would be lost. Furthermore, the estimate took no account of the effect of changes in the GATT rules mentioned by my hon. Friend. Such changes, and the phasing out being over a period of years, will mitigate considerably the effect of the ending of the MFA. It is not practical to make assessments in the form he suggests. In any event, it remains the European Community's policy, which the Government support, that the phasing out of the MFA should be part of a final Uruguay round package covering agreements on market access and strengthened rules and disciplines.

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