GATT Study to Survey World Trade in Textiles

GENEVA, June 27—An international study of world trade in textiles is to be undertaken for the first time in an effort to find the facts underlying highly‐charged economic and social issues that often embitter relations between importing and exporting countries.

A formal decision to establish a special working group to make a “study of fact regarding the economic, technical, social and commercial elements which influence world trade in textiles” was taken today by the 56‐nation council of the General Agreement on Tariffs and Trade.

The action was taken because of the “great importance” for many GATT member states of “trade in textiles and textile goods of cotton, wool, and man‐made fibers, and the unsatisfactory situation that exists in international trade in these products,” the council said.

Olivier Long, a former Swiss diplomat who is now GATT Director General, is to be chairman of the working party. Membership is open to any of GATT's 80‐member nations that wish to participate in the study.

The special textiles group is to hold its first meeting next month. It is under instructions to report to the council by the end of this year.

The working party is to treat separately the various textiles sectors, both according to the fibers used and according to the degree of processing.

The council, in drafting its directives, noted the “particular importance” of their textiles exports for the poorer countries as a source of foreign earnings and for their economic and social development.

At the same time, the council stressed that all solutions should be sought in the light of GATT “principles and objectives.”

Equality Is Objective

These seek to assure equal treatment for all member states and the expansion of international trade by the removal of barriers.

The low‐cost exporting countries are always fearful that their products may encounter new impediments to their entry into the industrialized nations. For this reason they have been emphasizing that in going along with the textiles study they are not committing themselves in any way to any future action.

In particular, Japan and other exporters have made clear they are not to be regarded as acquiescing to the bringing of wool and man‐made fiber textiles under some arrangement like that now regulating international trade in cotton textiles under GATT auspices.

The United States was the prime mover of this accord, which permits the industrialized countries to limit the expansion of cotton textile shipments into their home markets.

Mr. Long had long been pressing to have the over‐all textiles‐trade problem taken up at the international level in order to defuse the issue in country‐to‐country relations. But it was only last month that Japana agreed to the principle of a GATT study in a private meeting here with the United States, Britain and the Common Market.