Wed, 15 Jun 1994

Garment makers from 20 nations meet in Bali

NUSA DUA, Bali (JP): President Soeharto opened the 10th convention of the International Apparel Federation here yesterday, with a hope that the textile and garment trade would gradually be freed from non-tariff barriers under the new multilateral trading system resulting from the Uruguay Round of trade negotiations.

"Textile and garments contribute greatly to economic development in Indonesia and many other developing countries," the President noted at the two-day conference, attended by more than 300 delegates from 20 countries.

He pointed out that textile and apparel trade, under the present Multi Fiber Arrangement, is hindered by non-tariff barriers (quota restrictions) imposed by major importing countries which want to protect their domestic industries.

The President talked proudly of the impressive progress made by Indonesia's textile and garment industries which have now become one of the country's largest foreign exchange earners.

"But our industry is still highly vulnerable because it still depends mainly on imported cotton fiber and machinery," he conceded.

The President reiterated the importance of exports to the economies of most developing countries.

"Hindering exports from the developing countries amounts to the closing of jobs to thousands of job seekers," he said.

The President mentioned the grave impacts of high unemployment, saying that a rapid growth of labor force which is not matched by the creation of adequate jobs would cause massive restlessness with all its far-reaching implications.

He asked for global cooperation in coping with unemployment problems. He argued that in current world, which has become smaller due to the economic, globalization process, problems in one country could easily spill over to another.

The President welcomed the new multilateral trading system which will be administered by the World Trade Organization starting next year. He said that it was his hope that international trade would truly be more open.

The conference, which will end, today is being convened under the theme Towards the creation of a global market.

The main objective of the conference, according to IAF's President Takashi Onishi, is to enhance common perception about the challenges and changes brought about by advances in technology, production and marketing.

Delegates attending the meeting came from such developed countries as the U.S., Japan, Germany, Britain and Australia and developing ones such as Malaysia, Peru and Colombia. (vin)