§ Ms QuinTo ask the President of the Board of Trade if he will make a statement on the latest progress on the final discussions on the clothing and textile section of the GATT round.
§ Mr. NeedhamThe final GATT Uruguay round textiles and clothing agreement sets out the methodology for the phase-out of the multi-fibre arrangement (MFA) over a 10-year period which will commence once the detail of the complete GATT package has been agreed.
The MFA phase-out will be in four stages, each consisting of the liberalisation of some quotas and an increase in the level of those quotas not eliminated. Detailed work on the content of each stage of the phase-out phase-is not yet completed although it has been agreed that smaller supplying countries will benefit sooner than the larger suppliers.
The phase-out of the MFA will be balanced by improved GATT rules to deal with unfair trading practices, better intellectual property rights and lower tariffs in many export markets. We have pressed the European Commission to seek improvements in the tariff reductions offered by some countries and it is currently continuing negotiations with India, Pakistan, Indonesia and Hong Kong with a view to achieving greater concessions than those offered at present. Negotiations will if necessary continue until Ministers sign the final GATT act in April.