RI blames industrial states for unhealthy textile trade

RI blames industrial states for unhealthy textile trade

By Rita A. Widiadana

HONG KONG (JP): Industrialized countries impose protectionist
measures on textile and clothing imports from developing nations,
affecting the growth of their industries, an Indonesian minister
said here yesterday.

Minister of Industry and Trade Tunky Ariwibowo said: "The
world apparel trade is still in an unhealthy condition."

"There are still many restrictions imposed by importing
countries which hamper the growth of the industry in emerging
countries like Indonesia," he said in his keynote address to the
13th International Apparel Convention at the Hong Kong Convention
and Exhibition Center here.

"Importing countries are still imposing various forms of
protection which contradict the Agreement on Textiles and
Clothing (ATC) reached in the Uruguay," he told the two-day
meeting attended by about 400 representatives of 25 associations
grouped in the International Apparel Federation (IAF).

He said major importer countries, particularly the United
States and European countries, continued dictating to exporting
countries.

"The implementation of the ATC has so far been disappointing,"
said Tunky, who had just arrived from a three-day trade
ministers' meeting at the Asia Pacific Economic Cooperation
(APEC) forum in Montreal, Canada.

He explained that the ATC, aimed at liberalizing the world's
textile and clothing trade, promised more business opportunities
and jobs for developing countries.

The minister said the protectionist measures imposed by
importing countries included anti-dumping actions which have been
taken not just on the basis of trade issues such as production
costs as they should be, but also on labor rights or
environmental considerations.

"It is important for the World Trade Organization (WTO) to
review and tighten the guidelines on when and whether a product
is dumped," he said.

Tunky also urged developed countries to understand the
problems faced by developing nations in boosting their economies.

"The textile and garment industry plays an important role in
boosting our economy. It generates billions of dollars in revenue
and helps create jobs," he said.

Indonesia's textile and garment exports, according to the
Central Bureau of Statistics, increased by 5.6 percent to US$6.55
billion in l996 from $6.2 billion in 1995.

Free trade

IAF's president, Sunyoto Tanudjaja of Indonesia, said at the
opening of the meeting yesterday that many developing countries
were looking forward to freer trade in textiles and clothing
after the abolition of import quotas and tariff barriers by the
year 2005 as promised by the WTO.

Developing countries had made serious attempts to raise their
worker's living standards by raising minimum wages in the recent
years and improving working conditions, he said.

"For free trade in the textile and clothing industry to
flourish, major importing countries have to take a more
enlightened approach towards their trading partners in the
exporting countries," said Sunyoto, who is also president of
publicly listed PT Great River International,

Sunyoto said that world trade should be in a win-win
situation.

Companies in developed and developing countries had benefited
from trade cooperation strategic alliances such as joint
ventures, licensing agreements and multi-sourcing, he said.

At yesterday's meeting were Hong Kong's Acting Secretary for
Trade and Industry Tam Wing Pong, Richard Hughes from the WTO,
Ettiene Reuter, the head of the European Commission office in
Hong Kong, Italian designer Nino Cerruti and Indonesian designer
Iwan Tirta.

The IAF, headquartered in London, groups various countries,
including the United States, Britain, Hong Kong, Japan, South
Korea, Pakistan, India and Indonesia.

Today's meeting will discuss new technological developments
and Asian market prospects.