Brazilian textile expo ban angers RI

The Jakarta Post, Jakarta

Brazil's move to ban several Indonesian textile firms from participating in an upcoming international textiles exhibition there, has angered trade officials here.

"Because Indonesia competes with Brazil in the (global) textile market, the textile association in Brazil decided to exclude us from a textile exhibition there next month (June 20- 23)," National Agency For Export Development (NAFED) acting head Diah Maulida said.

Other countries banned from participating in the exhibition included China, South Korea and India, Diah said.

The ban came after the Indonesian government had prepared for the event, renting stands, arranging accommodation and airline tickets for local producers and officials, she said.

"Suddenly, however, we were informed that we are not allowed to participate."

NAFED, the state agency in charge of organizing Indonesian firms intending to take part in exhibitions, was disappointed and intended to protest the decision, Diah said.

Textiles and clothing are Indonesia's top exports with last year's combined revenue reaching US$7.60 billion, slightly up from $7.26 billion in 2003.

Textile producer countries have been sensitive to competition, particularly since the removal of the quota system, previously imposed by the World Trade Organization early this year.

The abolishment of the regime enables more efficient producer countries to expand their market shares in traditionally lucrative markets, such as the United States and the European Union, at the expense of less-competitive nations.

China is the biggest challenger in the global textile competition, with a recent study estimating the giant Asian country had the ability to expand its clothing market share in the U.S. from 16 percent to 50 percent.