U.S. grants quota leeway for Indonesian textiles<\/p>\n
JAKARTA (JP): The United States has agreed to give more leeway
\nfor Indonesia's exports of textiles and textile related products
\nto that country.<\/p>\n
Director general for International Trade from the Ministry of
\nIndustry and Trade, Anang Fuad Rivai, told journalists the United
\nStates' decision was reached in a three-day bilateral
\nconsultation early this month.<\/p>\n
\"As a result of the consultation, the United States agreed not
\nto apply Indonesia's quotas on textiles imported from other
\ncountries, even though the raw materials were actually being
\nproduced in Indonesia,\" Anang said.<\/p>\n
Since July 1, 1996, the United States has enforced a new set
\nof rules of origin for the import of a wide range of products,
\nfrom T-shirts to pants.<\/p>\n
Earlier, the origin of a product was determined on the basis
\nof where substantial transformation of the product had taken
\nplace, generally meaning where the cloth used in the product was
\ncut.<\/p>\n
However, from July 1, the new rules confer origin to the
\ncountry where the product is produced or assembled.<\/p>\n
Consequently, the United States' imports of textile products
\nfrom any countries which use Indonesia's grey fabrics are subject
\nto Indonesia's quota.<\/p>\n
Anang, who was accompanied by PT Texmaco's President M.
\nManimaren, called on Indonesia's textile producers and exporters
\nto use the opportunity to increase their exports to the United
\nStates.<\/p>\n
He also called on local textile printing industries to improve
\ntheir production capacities to absorb more locally produced grey
\nfabrics, most of which are currently exported to various
\ncountries for re-export purposes.<\/p>\n
According to data from the Directorate General of
\nInternational Trade, Indonesia's textile exports to the United
\nStates steadily increased to US$1.24 billion, in 1995, from $1.15
\nbillion in 1994, $1.14 billion in 1993 and $997 million in 1992.<\/p>\n
At the same time, Indonesia's total textile exports increased
\nto $6.20 billion in 1995, from $5.79 billion in 1994, $6.18
\nbillion in 1993 and $6.14 billion in 1992. Textile exports
\nconstitute 14 percent of Indonesia's total export market.<\/p>\n
The government has lowered its annual textile export target to
\n$10 billion per annum by the end of the current Five-Year
\nDevelopment Plan, from a target of $12 billion, due to slow
\ntextile export growth.<\/p>\n
The secretary-general of the Indonesian Textile Association,
\nBenny Sutrisno, said the slow growth of textile exports is mainly
\ncaused by the current shortage of textile products.<\/p>\n
Benny, also present at the conference, suggested Indonesia's
\ntextile producers could double their production capacities to
\nmeet domestic and international demand.<\/p>\n
The combined capacity of all textile producers currently
\nstands at 1.1 million tons per annum, while national annual
\nconsumption steadily increases. Domestic consumption reached 787
\ntons in 1995, up from 692 tons in 1994.<\/p>\n
Benny predicted national textile consumption to reach 900 tons
\nthis year, with the upward trend continuing to increase to up to
\none million tons by the year 2000. (06)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/us-grants-quota-leeway-for-indonesian-textiles-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}