ITCB pursues tariff cuts, anticipates non-tariff barriers

Zakki P. Hakim, The Jakarta Post, Jakarta

The International Textiles and Clothing Bureau (ITCB), a powerful lobby group at the World Trade Organization (WTO), is vowing to proactively seek ways to deal with existing trade barriers posed by some major importing nations.

Ending its three-day 41st meeting held in Bali on Thursday, the grouping of 23 textile and clothing producers issued the Bali Communique and elected the Indonesian Ambassador to the WTO, Gusmardi Bustami, as its chairman.

"The meeting resolved to make determined efforts for further liberalization of trade in textiles and clothing," Gusmardi said on Thursday.

He said that although the long-standing quota regime had now ended, following the elimination of a quota system starting on Jan. 1., trade in the sector continued to be impacted by targeted policy interventions on the part of major importing countries.

Textile and clothing products remained a subject for tariffs and non-tariff barriers, including the excessive implementation of trade remedies, including measures against dumping, subsidies and other safeguards, he said.

Major markets such as the United States and European Union have been reportedly seeking unfair ways to prevent surging textile and clothing imports from developing countries, especially China, to protect their local industries.

The grouping would further push the expansion of market access through negotiations on cutting the high tariffs in the WTO, he said.

The ITCB would also fight to anticipate non-tariff barriers; including pursuing a more flexible rule of origin, where a product with a certain percentage of local content could enjoy wider market access.

Gusmardi said ITCB countries were also concerned with the growing trend of campaigns in some major markets that discouraged consumers from buying products from countries because of their poor labor conditions, pay rates and environmental problems.

The meeting also heard proposals by some developed nations to help boost textile exports from developing countries severely hit by the tsunami disaster in December.

The ITCB is an organization of textile and clothing producing countries formed in 1975 and is tasked with fighting for the interests of developing countries in international trade forums.

Gusmardi said member countries also raised concerns in the Bali meeting over the abolishment of the textile quota system, with some fearing it would allow Chinese textiles to dominate the global market.

"However, none of the concerns raised were backed with adequate evidence," he said.

Most member countries had anticipated such a threat and were optimistic there was still plenty of room for them in world markets, he said.