UNILATERAL TEXTILE ACCORD INTERPRETATIONS DECRIED

6:51 AM Jul 4, 1994

UNILATERAL TEXTILE ACCORD INTERPRETATIONS DECRIED
Geneva 2 July (TWN) -- The International Textiles and Clothing Bureau -- the alliance of Third World exporters of textiles and clothing under the Multifibre agreement --have deplored the attempts "by any major trading entity" to unilaterally interpret some of the provisions of the Agreement on Textiles and Clothing in the Uruguay Round.

The ITCB Council was meeting last week at Arequipa in Peru.

Though the country was not named, the reference to the 'major trading entity' was to the United States which in its tariff schedules of market access commitments has put in a head-note qualifying its tariff rate to its interpretation of the Textiles and Clothing Agreement and the market openings that the MFA exporting countries would provide.

The ITCB communique said: "Such attempts run counter to the concept of multilateralism enshrined in the Uruguay Round results and therefore cannot be accepted."

The Council expressed the view that the ITCB had to play a vital role in monitoring the implementation of the Textiles and Clothing agreement with a view to ensuring the full integration of this trade into the GATT. The ITCB, the Council added, should also keep in view the interlinkages and developments in the operation of the constituent agreements of the Uruguay Round that impinge on the textile sector.

The Council also noted with concern attempts by developed importing countries to weaken the multilateral trading system through the introduction of "new, unfair, discriminatory, protectionist devices" -- a reference presumably to attempts to impose restrictions on grounds of environment protection or fair labour standards.

The ITCB, the Council said, has a crucial role in protecting and safeguarding the legitimate interests of developing exporting countries.

The ITCB communique also referred to the impending enlargement of the European Union (through Austria, Sweden, Norway and Finland joining the EC) and its possible effects on the textiles and clothing exports of the ITCB members.

Some of these new adherents like Sweden have done away with MFA-type restrictions and have fully liberalized their textiles and clothing imports and apply normal GATT rules.

The issue that ITCB members have been concerned with is whether after the accession the EU's restrictive MFA regime would be applied and if so with what effect.

The ITCB communique said that the enlargement of the EU "must not have an adverse impact on export opportunities of ITCB members". The Council urged the European Union to ensure increased market access and improved potential for trade expansion subsequent to the enlargement. Should ITCB members be adversely affected due to the EU enlargement, the Council said that adequate compensation should be made available to those affected.

Recalling the Marrakesh Declaration of the Ministers, the ITCB reiterated that all countries should refrain from taking any trade measures that would undermine the Uruguay Round results and their implementation until the coming into force of the WTO.