U.S. set to end textile quota

U.S. set to end textile quota

The United States government has given notice that all shipments
of textiles and apparel exported in 2004 but arriving in the U.S.
next year will still be required to satisfy the current
administrative requirements, a senior official at the Ministry of
Industry and Trade said.

Director of Industrial Exports Mardjoko told reporters on
Monday that the notice suggests that the U.S. is determined to
scrap its textile quota system on Jan. 1, 2005, as planned.

"We received the notice from the U.S. Committee for the
Implementation of Textile Agreements (CITA) late last month,"
Mardjoko said.

He added that he had forwarded the notice to major
stakeholders, including the Indonesian Textile Association (API)
and the Indonesian Apparel Manufacturers Association (AMI).

Among the administrative requirements are the need for
Electronic Visas (ELVIS), Guaranteed Access Level (GAL)
certification, or exempt certification to enter the U.S. These
requirements will not be applied to exports shipped next year.

The quota system has allowed less efficient textile producers
to continue exporting their products to the U.S. at the expense
of that country's consumers. There are fears than when the quota
system is dropped next year, Indonesian textile and apparel
producers will find the going tough as they endeavor to compete
with more efficient producers from China.

Indonesia's textile exports were worth $7.034 billion in 2003.
The U.S. market accounts for more than 28 percent of Indonesian
textile exports. -- JP