Japan to conduct study on textile imports from RI
Japan to conduct study on textile imports from RI
JAKARTA (JP): Japan will soon conduct a study into textile
imports from Indonesia and hold talks with the parties concerned
with a view to resolving a textile row between the two countries,
Japanese Ambassador to Indonesia Taizo Watanabe said yesterday.
"We have decided to take a major study and go into dialog with
people concerned so both parties will understand what is taking
place, not only here but also in Japan," Watanabe said after
signing diplomatic notes on a Japanese assistance grants to
Indonesia worth 1.2 billion yen (US$15 million).
The Japanese Ministry of International Trade and Industry
(MITI) announced late last month that it had begun a one-year
investigation into textile imports from Asian countries.
Last February Japan's textile industry executives formally
asked their government to rescue the sector through emergency
curbs on textile imports from China, South Korea and Indonesia
under an international safeguard rule.
The textile safeguard rule is an internationally accepted rule
under the 1974 Multifiber Agreement and the 10-year textile
accord of the newly-established World Trade Organization (WTO).
Indonesian Minister of Trade Satrio B. Joedono acknowledged
that, under WTO provisions, Japan could take special measures,
including reducing its textile imports from Indonesia, to protect
its textile industry.
"However, Japan first has to prove that our textile exports to
Japan really harm small industries there," Joedono told
journalists on Monday after receiving visiting Australian Trade
Minister Senator Bob McMullan.
The Japan Spinners Association said it had asked for curbs on
cotton yarn imports from China, South Korea and Indonesia. At the
same time, the Japan Cotton and Stable Fiber Weavers Association
called on the ministry to restrict imports of cotton poplin and
broadcloth from China and Indonesia.
Both textiles are used for the manufacture of shirts and other
clothing.
Decision
"Now, we have not yet decided on the matter. A decision will
be made after the study is completed," Watanabe said, adding that
MITI would start its investigation here within a few months.
He said that the level of the importation of textiles from
Indonesia was not as high as from China, but that the growth rate
of imports from Indonesia was very high and the prices were very
competitive.
"The rate of the increase sometimes could be damaging to small
and poor industries. That's why we want to exchange views with
Indonesia about how to cooperate between the two countries to
promote mutually beneficial relation," Watanabe said.
According to AFP, which quoted MITI figures, China, South
Korea and Indonesia provided 78 percent of Japan's 45,000 tons of
thread imports last year. And of the 232 million square meters of
the imported cloth, China and Indonesia alone provided 96
percent, with Indonesia making up 20 percent of the total. (rid)