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