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)