ABSTRACT
Non-discrimination was one of the basic principles of the GATT. It prohibited the use of quantitative restrictions but permitted them insofar as they were not discriminatory. Nevertheless, many countries have applied quantitative restrictions subsequent to the GATT by invoking the provisions relative to balance of payments problems. This provision was used by the textile sector, particularly in developed countries (essentially North America and Europe), to protect themselves against textile exports from developing countries. The textile trade was to be subject to different rules from those applied to other goods. The textile trade (beginning with cotton) was exempted from the GATT rules on protective measures. Forced to do so by President Kennedy, importing and exporting countries signed a multilateral agreement, entitled the Short-Term Arrangement, concerning the international textile trade. This arrangement authorized countries to protect their textile industries by imposing quantitative restrictions.
