Brazilian textile expo ban angers RI

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.