Canadian Textile Trade and Hong Kong

Ferner, Paul
Publisher:  Asia/North American Communications Centre, Kowloon, Hong Kong
Year Published:  1978
Resource Type:  Article
Cx Number:  CX841

This article was put together through collecting information from back issues of Asia Monitor. It analyzes the effect abroad of Canada's unanticipated, unilateral decision to fix import quotas in the textile and clothing industry, drastically cutting back the '76-'78 levels to those of 1975.

Abstract: 
This article was put together through collecting information from back issues of Asia Monitor. It analyzes the effect abroad of Canada's unanticipated, unilateral decision to fix import quotas in the textile and clothing industry, drastically cutting back the '76-'78 levels to those of 1975. Countries and areas in Asia like Taiwan, South Korea, Hong Kong, Mainland China and the Philippines were particularly hit by this move. Previously negotiated agreements for these years were broken, so that, in effect, the exporting country's ability to control its own trade was removed and put in the hands of Canadian importers. Not until early 1978 did Canada agree to reopen talks with Hong Kong to further negotiations.
Ferner perceives the reasons for this decision as rooted in Quebec's heavy lobbying of Ottawa for protection of the home industry. For a long time, he says, Quebec has accused the federal government of destroying local industry by allowing cheap imports. Some other countries abroad see this kind of self-protectionism as a cheap way to make exporting nations, often of "developing" status, pay for deficiencies in the home industry. Not only Canadians, but the whole world is effected. Consumers pay more, unemployment is exported and world economic activity slows down.
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