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By Jose R. De LA Torre

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The situation in other textile products (fibres and textiles), on the other hand, improved during this period. 5 billion in 1963, the balanceof-trade deficit had been practically eliminated by 1970 and the balance of trade continued to improve until the end of 1980. Altogether, however, the surplus in textiles and fibres did not cover more than a quarter of the deficit in clothing in 1980 and this proportion had been even lower in previous years. 7 Imp. ... 1 Bal. 7 Exp. 0 Imp. .. 3 Bal. 3 15.

Policies for Aqjustmmt: SomL General Orientations (Paris: OECD Secretariat, 1978). 2. J. Sarna, 'International Guidelines for Industrial Adjustment Policies', Journal of World Trade Law, London, November-December 1981, pp. 490-99. 3. For a thorough analysis of the adjustment policies undertaken by most OECD countries, see Positive Aqjustmmt Policies: Managing Structural Change (Paris: OECD Secretariat, 1983). 4. A recent example being the ten-fold increase in tariffs on motorcycle imports announced by the Reagan Administration in April 1983.

If they succeed and the expectation is that these developments will take at least ten more years to bear fruit - a major revolution may once more alter the nature of the industry. The advantage of such systems for the high-wage countries of the OECD lies mainly in their potential for 29 reducing labour-cost disparities between the developed and the developing world. Yet, changes in wages and exchange rates have also had a major impact on labour costs per unit among OECD countries. 2 provides a comparison of labour costs per unit for the eight countries in the study and three others for the period 1970-80.

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