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Copyright 2005 The Financial Times Limited
Financial Times (London, England)
August 29, 2005 Monday
Asia Edition 1
SECTION: LETTERS TO THE EDITOR; Pg. 10
LENGTH: 498 words
HEADLINE: Careful planning by textile importers is the only solution
BYLINE: By TUNCER KAYALAR
BODY:
From Mr Tuncer Kayalar.
Sir, The transformation of global production and sourcing patterns in the post-Agreement on Textiles and Clothing era is a cause of serious concern for many countries. The complexity of challenges calls for joint and co-ordinated efforts by the international community and leading trading partners.
Discussions in this framework have especially focused on the sudden surge of exports from China. As a matter of fact, the measures already taken by some countries, and initiatives of others take into account this problem and try to make possible a smooth transition to the quota-free trading environment for all players.
The present situation in the European Union market seems to prove that these countries have not been engaged in these practices for nothing: import volumes from China for January-April 2005 have risen by up to 500 per cent compared with the same period of 2004. Moreover, attention should be given to the fact that the agreed quota levels have been calculated based on these inflated figures. Currently, five of the 10 categories covered by the China-EU textiles agreement are likely to exceed the 2005 quota levels and two of them already have. Thus, China even surpassing the limits of such a generous agreement seems to prove the prediction that, with an estimated share of 50 per cent or more, it will monopolise the global textile and clothing trade.
This very fact brings about a problem - whether this situation is an example of "manifestly unfair trade practices" or not. The common view is that trade in this sector has been subject to the use of trade-distorting practices, including deliberate currency undervaluation, state subsidies and the proliferation of non-performing loans and rebate schemes originating basically from China. In the light of the figures and what was argued above, the pressures from the importers of some EU countries should not prevent the Commission from abiding by the terms of the agreement, which was an outcome of long-term deliberations. Moreover, within the framework of the agreement in question, the quotas will be increased by up to 12.5 per cent annually, which is already assumed to be a reasonable amount by both China and the EU.
Textiles and clothing - one of the most global industries in the world today - is a significant source of income and export earnings for many countries. This sector plays a crucial socio-economic role in many countries' development efforts, by offering entry-level jobs for unskilled labour and especially for women.
In this respect, the sudden surge of exports originating from China has had - and will continue to have - damaging effects on the other countries' development efforts. The situation should in no way lead to an overthrow of the agreement between China and the EU. The solution is to be attained by careful planning by EU importers next year.
Tuncer Kayalar,
Undersecretary,
Undersecretariat of the Prime Ministry for Foreign Trade,
Ankara, Republic of Turkey
LOAD-DATE: August 28, 2005
Financial Times (London, England)
August 29, 2005 Monday
Asia Edition 1
SECTION: LETTERS TO THE EDITOR; Pg. 10
LENGTH: 498 words
HEADLINE: Careful planning by textile importers is the only solution
BYLINE: By TUNCER KAYALAR
BODY:
From Mr Tuncer Kayalar.
Sir, The transformation of global production and sourcing patterns in the post-Agreement on Textiles and Clothing era is a cause of serious concern for many countries. The complexity of challenges calls for joint and co-ordinated efforts by the international community and leading trading partners.
Discussions in this framework have especially focused on the sudden surge of exports from China. As a matter of fact, the measures already taken by some countries, and initiatives of others take into account this problem and try to make possible a smooth transition to the quota-free trading environment for all players.
The present situation in the European Union market seems to prove that these countries have not been engaged in these practices for nothing: import volumes from China for January-April 2005 have risen by up to 500 per cent compared with the same period of 2004. Moreover, attention should be given to the fact that the agreed quota levels have been calculated based on these inflated figures. Currently, five of the 10 categories covered by the China-EU textiles agreement are likely to exceed the 2005 quota levels and two of them already have. Thus, China even surpassing the limits of such a generous agreement seems to prove the prediction that, with an estimated share of 50 per cent or more, it will monopolise the global textile and clothing trade.
This very fact brings about a problem - whether this situation is an example of "manifestly unfair trade practices" or not. The common view is that trade in this sector has been subject to the use of trade-distorting practices, including deliberate currency undervaluation, state subsidies and the proliferation of non-performing loans and rebate schemes originating basically from China. In the light of the figures and what was argued above, the pressures from the importers of some EU countries should not prevent the Commission from abiding by the terms of the agreement, which was an outcome of long-term deliberations. Moreover, within the framework of the agreement in question, the quotas will be increased by up to 12.5 per cent annually, which is already assumed to be a reasonable amount by both China and the EU.
Textiles and clothing - one of the most global industries in the world today - is a significant source of income and export earnings for many countries. This sector plays a crucial socio-economic role in many countries' development efforts, by offering entry-level jobs for unskilled labour and especially for women.
In this respect, the sudden surge of exports originating from China has had - and will continue to have - damaging effects on the other countries' development efforts. The situation should in no way lead to an overthrow of the agreement between China and the EU. The solution is to be attained by careful planning by EU importers next year.
Tuncer Kayalar,
Undersecretary,
Undersecretariat of the Prime Ministry for Foreign Trade,
Ankara, Republic of Turkey
LOAD-DATE: August 28, 2005
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