ASEAN firms seek common stance on nontariff barriers

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)