Textile Protective Measures
ever tough worldwide competitiveness, the textile industry in many countries
on one hand are losing out their international market share, while on the
other hand domestic markets also being flooded with cheap imported goods.
Production plummet, jobs cut and factories closing down. They are restlessly
appealing for help from the government to adopt protective measures.
Philippines Calls to Delay AFTA
number of key manufacturing industries in the Philippines have petitioned
the Philippines government to postpone implementation of the tariff
reduction provisions of the ASEAN Free Trade Agreement (AFTA).
The call for a “go slow” policy has been led by the domestic textile industry which has been struggling with a rising tide of low cost imports from China and elsewhere.
the AFTA agreement, the Philippines is obligated to lower its imports
tariffs on a range of manufactures products – including textiles and
apparel. However, AFTA
members do have the option of postponing tariff reductions while business
conditions are reviewed and the impact of tariff reductions are analyzed.
The textile industry has asked that the government
postpone tariff reductions for textiles and apparel for 6 to 12 months
awaiting review by the government of which products should be liberalized
and which should not.
date, the Filipino government has only notified the AFTA council that it
will take more time to review tariff structures in petrochemicals. No
mentioned has been made of postponing reductions in other products.
to Impose Limitations On Textile Imports
The Ministry of Industry and Trade, Indonesia
has issued a decree to limit textile imports in a bid to help the local
industry affected by the massive quantities of cheap imports with effect
from 1 November 2002. Under the new decree, Indonesian textile
producers can only import textile products for used as raw
material or supplements for the production process of the
"importers-producers" and may not be sold or
transferred to others. They must also seek approval from the Ministry
of Industry and Trade and report
USA: ATMI Blasts Indonesian Textile Import Ban
American Textile Manufacturers Institute (ATMI) on 3rd November
2002 called on the Bush Administration to take immediate action over
Indonesia’s decision to ban textile imports.
chairman Van May blasted the ban as illegal and in breach of WTO rules. He
also criticised the Indonesian government for imposing such a sweeping ban
in response to increased imports from only one nation – China.
ATMI propose that a fair response to Indonesia
would be to prohibit imports of Indonesian textile goods, which totaled $350
million last year until the ban is lifted.
Bangladesh Unveil Industry
Bangladesh Textile Mills Association (BTMA) on early November unveiled its
blueprint for the clothing industry's future, which includes the withdrawal
of all duties and taxes.
officials said they do not want cash incentives put forward under an
alternative plan by the government, but low-interest loans, a 25% rebate on
utility bills and port charges at international levels.
also want the ready-made garment and textile industries brought under the
umbrella of one ministry to avoid confusion, and downward adjustment of
banking charges. The association also called for a crackdown on fabric and
apparel smugglers. The government were urged to set up specific entry points
throughout the country to better manage a surge in low-cost imports of yarns
and fabrics from India and other suppliers.
China Imposed Anti-Dumping Measures
On Korean Polyester
has initiated temporary anti-dumping measures against South Korean imports
of polyester staple fiber, state media reported on November 2002. The
decision followed a probe into claims last year the imports were hitting
domestic polyester staple fiber producers hard.
ministry now requires importers of South Korean polyester staple fiber to
provide customs officials with cash deposits, although it did not specify a
Israel: Calls For Surcharge
On Chinese Imports
Manufacturers Association's textile division is demanding a15-20% surtax on
imports from China to help local manufacturers recapture lost sales.
cheap Asian imports have hit sales at 45% of Israel's textile factories,
leading to a loss of some 5,500 jobs. It estimates more than 70 textile
factories have been forced to relocate to low-cost areas over the past year.
products have surged in recent years. For the first six months of 2002,
apparel imports from all Asian suppliers reached $335 million, up 16% from
comparable 2001 levels.