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.