Nov 28, 1985

U.S. AND THIRD WORLD DIFFER ON TEXTILES TRADE.

GENEVA, NOVEMBER 26 (IFDA/CHAKRAVARTHI RAGHAVAN)— Third World countries renewed their call Tuesday for liberalisation of the trade in textiles and clothing, and for an eventual return of this trade to full GATT rules and principles, but the U.S. said there was no consensus at this stage on this.-

The positions of the Third World textile exporting countries was presented at the annual session of the GATT Contracting Parties, by south Korea’s Joun Young Sun.-

Sun’s speech, supported by individual statements from a number of Third World countries, expressed concern over the "Jenkin’s bill" in the U.S. Congress, seeking to restrict imports from Third World countries.-

Sun said for over a quarter of century, the trade in textiles and clothing had been subject to special treatment, and protection had been "institutionalised in derogation from GATT rules".-

The original justification was for "a temporary breathing space" to permit necessary adjustments in importing countries.-

But this had become less and less credible with each renewal of the special arrangements.-

"If there is no demonstration of willingness to move away from the long-standing institutionalised protection in the textiles sector this might adversely affect expectations of what can be achieved in negotiations in other areas", Sun declared.-

A number of Third World countries who spoke also underlined their view that they should not be expected to make "concessions" in respect of trade in other sectors as a price for liberalisation of the trade in textiles or its return to GATT, since they had not been compensated for the discriminatory restrictions imposed on them by the special arrangements.-

Michael Smith of the U.S., the only speaker among the industrial countries, reportedly said that there was now no consensus on the issue of return of the trade to GATT rules, and the GATT working party considering the subject should continue its work.-

He also noted that while differing versions of the Jenkin’s bill had been adopted by the U.S. Senate and the Congress, it was not yet the law of the United States.-

In its consideration of the various parts of the GATT work programme, and the report of the GATT Council and other bodies on these matters, the Contracting Parties Tuesday agreed on the continuance of the work on these matters.-

But no decision was taken on the issue of quantitative restrictions and on services.-

It was also made clear by the united states that the decisions to continue with the work programme on individual issues was subject to the overall agreement on the report of the GATT Council and connected issues - presumably a reference to the question of establishment of a Preparatory Committee for a new round of multilateral trade negotiations in GATT.-