Indonesian textile exports face new hurdles
Indonesian textile exports face new hurdles
JAKARTA (JP): The joining of Austria, Finland and Sweden to the European Union (EU) at the beginning of this year has hampered Indonesia's textile exports to the three countries, Minister of Trade Satrio B. Joedono said.
He told newsmen in a new-year press gathering at his office yesterday that the joining of the three countries has caused new import barriers for textiles, including those from Indonesia.
Joedono specified that some of the new barriers are higher import tariffs and the introduction of a quota system for textiles.
"After entering the EU, the three countries automatically adopt all EU regulations, including the quota system. This will disrupt the already good relationship between textile exporters here and importers in the three countries," Joedono said.
The Ministry of Trade called on Indonesian textile exporters dealing with importers in the three countries to report themselves to the ministry for quota allotment.
Textile exporters who have already acquired import quotas to the 12 old members of the EU are automatically able to export their textiles to the three new members beginning this year.
Austria, Finland and Sweden officially joined the EU on Jan. 1, 1995, bringing to 15 the total number of union members.
In 1992 Indonesia exported 1,642 tons of textiles and textile- related products worth US$ 17.1 million to Austria, 660 tons worth $4.7 million to Finland and 1,731 tons worth $23.78 million to Sweden. Indonesia's total textile exports in 1992 stood at $5.96 billion, which increased to $6.06 billion in 1993. During the January-August period of last year, exports of those products reached $3.84 billion.
Failure
According to the Indonesian Textile Association, Indonesia's export of textile products under category 23, staple fiber and waste, to EU countries increased by 43 percent in 1993, making Indonesia the largest textile supplier to the EU, whose total textile imports exceeded 50,000 tons.
However, in negotiations last month with the EU Commission to revise the existing quota, Indonesia failed to seek a quota of 20,000 tons per annum of category 23 for Indonesian textiles.
The EU proposed 12,500 tons -- and a further 1,000 tons after Austria, Finland and Sweden entered the EU -- but Indonesia did not accept it.
Director General of Foreign Trade Djoko Moeljono said yesterday that the negotiations will resume again very soon.
Minister Joedono noted that Indonesia will seek the highest possible quota in the next negotiations. "If we get a high quota, we can ensure the continuity of textile exports to European countries, although the export growth will be limited by the quota system."
Under the new General Agreement on Tariffs and Trade, which officially came into affect on Jan. 1 this year, a quota system will be phased out within five years and changed with a tariff system.(rid)