SINGAPORE AGENDA SHOULD ADDRESS TEXTILE ISSUES

11:56 AM May 24, 1996

SINGAPORE AGENDA SHOULD ADDRESS TEXTILE ISSUES
Geneva 24 May (TWN) -- The International Textiles and Clothing Bureau (ITCB) has said that the Singapore Ministerial Meeting of the WTO should address issues relating to the Textiles sector, including the functioning of the Textile Monitoring Body (TMB) and the large-scale use of transitional safeguards and proliferation of anti-dumping actions by the importing countries.

The ITCB is an alliance of Third World textiles and clothing exporting countries, and its recommendations have come in a communique issued at Bangkok at the conclusion of the meeting (20-24 May) of the ITCB's Council of Representatives.

At the Bangkok meeting where the Council reviewed the implementation of the Uruguay Round Agreement on Textiles and Clothing (ATC) in the past year, the ITCB said the most important aspect of the ATC was the integration of textile products, designed to remove MFA restrictions progressively, so that the transition to the GATT disciplines at the end of ten years could take place without difficulty.

The ITCB urged the restraining countries to prepare their integration programmes for the second stage with this objective in view, and the programmes should be commercially meaningful, contributing substantially to the liberalisation of restrictions.

"These," the ITCB communique said, "should contain an equitable mixture of restrained and unrestrained products, a balanced proportion of sensitive and non-sensitive products, and a greater emphasis on clothing products. Integration programmes on these lines alone will ensure a smooth transition from the present system to the GATT disciplines. This is in the interest of both restraining and exporting countries."

The Bangkok communique said the ITCB is "very much concerned" at the large scale introduction of transitional safeguards by one major trading partner (the United States) in 1995.

"Such use," the ITCB said, "is in violation of the commitment of sparing use of the safeguard system contained in the ATC. Such actions were initiated without careful consideration of facts and proper assessment of serious damage to the domestic industry. The ITCB urges WTO members to be extraordinarily careful in the application of transitional safeguard, particularly in its sparing use and to scrupulously respect the disciplines and procedures contained in the ATC."

Referring to the role of the TMB in supervising the proper implementation of the ATC, the ITCB communique said: "It is unfortunate that in some instances the TMB could not reach consensus on issuing recommendations regarding the introduction of transitional safeguard measures. The ITCB expects that such occasions will not arise in the future."

Noting the "adjudicatory role" of the TMB and the commitment of the WTO to multilateralism, the communique said: "it is the understanding of the ITCB that the TMB is not entitled to recommend the parties back for consultations, thereby encouraging bilateralism. The TMB should also provide the underlying basis and reasoning its recommendations."

In spite of these shortcomings, the ITCB however added, the TMB has succeeded in laying down rigorous standards for the existence of serious damage (warranting transitional safeguard measures).

The new rules of origin introduced by the US with effect from 1 July of this year, the ITCB believed, "will disturb existing patterns of trade." The ITCB expects the US to consult with affected exporting countries to find appropriate and equitable adjustments. It urged the US to undertake provisional measures in the implementation of these rules to minimise the adverse effects during the change over to the new rules.

The ITCB also urged the restraining countries to comply fully with their obligations under Art. 2:18 of the ATC (for advancing growth rates) and extend this benefit to all LDCs and cotton-producing exporting countries.

The ITCB also noted with concern "the proliferation of anti-dumping actions in the textiles sector on products already under restraint". Such actions were seen by the ITCB as "in the nature of double protection and amounting to trade harassment" and called upon the developed countries to exercise moderation and initiate actions only in genuine cases of dumped imports".

The communique said: "The ITCB strongly supports inclusion of the above mentioned aspects pertaining to the textile sector in the agenda of the WTO Ministerial Conference due to be held at Singapore in December 1996."