ASEAN firms seek common stance on nontariff barriers
JAKARTA (JP): The ASEAN Federation of Textile Industries began its two-day meeting here yesterday to seek a joint stance in facing nontariff barriers imposed by the world's major textile importers.
The chairman of the Indonesian delegation to the meeting, Hussein Aminuddin, said that the rules of origins imposed by the United States on textile imports from the Association of Southeast Asian Nations (ASEAN) countries would be the main topic to be debated in the meeting.
"The federation will seek a common stance to face such kinds of nontariff barriers. It is important to have the same voice in dealing with a threat from outsiders," he told reporters.
The rules of origin imposed recently by the United States hurt most textile producers in ASEAN because under such a ruling, large portions of their textile quotas to the United States could be used by other countries.
Under the new rules, the quotas of textile exports to the United States are based on the origin of products. Garments exported, for example, by an European country, could be included in the Indonesian textile quota if the raw materials originated from Indonesia.
Minister of Industry and Trade Tunky Ariwibowo said yesterday that Indonesia will seek compensation from the United States if the rules of origin causes losses to Indonesian exporters.
He acknowledged that with the imposition of the rules of origin, a large portion of Indonesia's textile quotas could be used by overseas garment producers.
"It hurts us. We, therefore, will ask the United States to offset any loss in our textile export quotas from the imposition of the ruling," he told reporters after delivering his speech at the 16th council meeting of the ASEAN Federation of Textile Industries.
The meeting, which will end today, will also review the organization's program made in its 15th council meeting in Manila in October, 1993. In addition, the federation, which is now chaired by Sopon Wichitrakorn of Thailand, will elect a new leader in the meeting.
Oversupply
In his address, Tunky warned ASEAN textile producers of the gloomy outlook for the world's textile market in the next five years.
He said that there could be an oversupply of textile products in 2000 and 2005, given the relatively flat growth in textile demand.
Tunky said that the annual growth of the world's textile industry is projected to be around 2.3 percent until 2000 and 2.1 percent until 2005.
He said the world's total demand for textile products will be around 42 million tons in 2000 and 47 million tons in 2005, with the world per capita consumption of textile products reaching 6.8 kilograms in 2000 and 7.1 kilograms in 2005.
The world supply, on the other hand, is estimated to reach 45 million tons in 2000 and 51 million tons in 2005, he said.
"The figures indicate that there could be an oversupply of textile products between 2000 and 2005," he said, adding that the not-so-promising situation is partly due to a large surplus of synthetic fibers produced in Asian countries.
Tunky said that ASEAN is expected to produce around 3.65 million tons by the year 2000, accounting for around 8 percent of the world's total supply.
He noted that the demand for textile products in the region is projected at 1.33 millions tons, or around 3.15 percent of the world's total demand.
Indonesia exported US$6.06 billion worth of textiles and textile-related products in 1995. Of the total, $500 million worth of the products was exported to other ASEAN countries.(hen)