TEXTILES: THIRD WORLD RENEWS COMPLAINTS AGAINST U.S.

Jun 12, 1985

TEXTILES: THIRD WORLD RENEWS COMPLAINTS AGAINST U.S.

GENEVA, JUNE 6 (IFDA) -- Third World textile exporting country-members of the Multifibre Arrangement (MFA) complained in the GATT Council Wednesday of the continuing further restrictions on their exports, in violation of the MFA and GATT rulings.

The viewpoint of the Third World members of the MFA was put forth by Pakistan’s Mohammad Bajwa at the special Council session Wednesday.

The Third World complaint focussed particularly on the U.S. actions.

Bajwa recalled that after the December 1983 new criteria for "market disruption", unilaterally established by the U.S., and "calls" under it, there had been findings of the textile surveillance body (TSB) that many of the "calls" from the U.S. for consultations to restraint exports were "unjustified", and there were recommendations that such new restraints in particular cases should be rescinded.

Despite all this, the U.S. calls on exporters for consultations and restraints continues, Bajwa complained.

The TSB is the body under the MFA, which hears and adjudicates complaints from members in trade regulated by the MFA.

The new customs regulations amendment rules of the U.S. relating to country of origin for textiles and clothing products, Bajwa said, had now finally entered into force, with little changes from the original drafts.

This U.S. action was despite the ruling of the TSB that these regulations had "indeed upset the balance of rights and obligations" under a bilateral agreement between the U.S. and the Third World exporting country concerned.

There had also been the use of anti-dumping and counter-vailing duty procedures against 13 Third World countries on their textiles and clothing exports, despite the views expressed against it at the GATT Council and at the textiles committee meetings

As a result of all these discriminatory actions against the Third World, while U.S. imports from MFA Third World members had declined by four percent between October 1984 and March 1985, imports from unrestrained industrial country sources had increased by 35 percent, Bajwa pointed out.

Currently a bill before the U.S. Congress would restrain further textile and clothing imports, and substantially rollback the trade from Third World suppliers.

If enacted overall imports into the U.S.A. would be cut back by 20 to 30 percent from 1984 levels, and for some individual suppliers it could be as high as 50 percent.

Bajwa added: "we are all familiar with the use of such pressure tactics on the eve of MFA negotiations. We however note that the U.S. administration is already on record as opposing this bill.

"We are nevertheless deeply concerned that this bill has been initiated and pushed despite its being in direct contradiction with U.S. commitments under the MFA, the bilateral agreements and the commitments under the Ministerial declaration of 1982".