Wed, 28 Sep 1994

U.S. allows 9% rise in imports of RI textiles

JAKARTA (JP): The U.S. government has agreed on a new quota allowing Indonesia to increase its textile and textile product exports to that country by nine percent in 1994-95, a report said yesterday.

A Suara Pembaruan correspondent yesterday quoted U.S. officials in Washington as saying that Indonesia can increase its exports of textiles and textile products to the United States by nine percent to 542.5 million square meters in 1994-95 from 497 million square meters in 1993-94.

The agreement will apply until the end of 1995.

The increase represents an unprecedented hike because past bilateral agreements stipulated that export quotas could only be expanded by a maximum of six percent from the previous period.

The Washington-Jakarta textile agreement was achieved after the third stage of negotiations which started last Thursday. The two countries failed to reach agreement during the first negotiation in Washington in April and the second in Bali in June.

In the meantime, Indonesia's diplomatic corps in Washington have confirmed the report.

"Yes, the United States has agreed to expand our export quota," said Gusmardi Bustami, a trade attache in the Indonesia embassy, as quoted by Suara Pembaruan.

Indonesia exported about US$1.2 billion worth of textiles and textile products to the United States last year.

Categories

The nine percent increase covers several specified increases in the exports of textiles and textile products.

The highest increase falls on the export quota of women's and girls' suits, which jump by 95 percent to 350,000 pieces, followed by men's and boys' suits which grow by 84 percent to 250,000 pieces.

Suara Pembaruan also reported that the new agreement had formed a new, combined category from other categories of products, including men's cotton shirts, boys' knitwear, women's shirts and girls' knitwear. The export quotas of this new category, according to the report, will increase by 15 percent.

Similar treatment is also being given to men's and boys' cotton trousers which will be combined with the women's and girls' cotton pants. The quota of this category is to increase by 10 percent.

Similarly, formal wear of both gender groups is to be merged with cotton-based sleep wear which is to increase by 10 percent.

The report also cited that exports of cotton and synthetic- fabric garments, cotton shorts and trousers, and cotton jackets will increase by an average of five percent over the previous year. (hdj)