Canada and Japan had a textile treaty from 1971 to 1980 for polyester fabrics. Nevertheless, Japan has been observing that actual level via voluntary restraints. That level called for an annual export amount of 23.3 million square yards. A final decision will probably be made in late February. Japan plans to defend itself by asserting that its products do not harm Canadian makers as Canadian products are thick, crude cloth while Japanese products are fine, high class textiles.
Any price differentials are the result of the weak yen.
They also plan to call on a wide array of Canadian apparel makers to support them. The Japanese are also concerned that this may affect similar dumping charges made by the Americans and the dumping the Japanese are claiming against Korean exports to Japan.