Jul 29, 1992

A LONG AND DIFFICULT MFA DEBATE ON THE CARDS.

BRUSSELS, JULY 27 (IPS/SHADA ISIAM) -- The discussions on the future of the Multi-fibre Agreement are expected to be long and difficult, trade negotiators believe.

In terms of the Uruguay Round, where the MFA and its future is on the agenda, textile trading nations have agreed that the MFA will have to go as part of a larger move to liberalise world trade.

As part of the Uruguay Round package, "transitional" arrangements are being negotiated to ensure that the move towards free trade in textiles takes place in an orderly manner.

But with the Uruguay Round and discussions on the future textile transitional pact continuing to mark time, the MFA, which was extended for 17 months following its official expiry date in July, 1991, is once again set to run out at the end of the year.

Textile trading nations are thus be to worry about the future. The European Community's executive commission has said that the MFA should get another two-year extension to allow for more time for the successful conclusion of the Uruguay Round.

Brussels says this is based on the assumption that the results of the Round will only be implemented as of January 1, 1995.

Asian and Latin American textile exporters are not so sure.

While negotiators agree that world trade in textiles and clothing will have to be covered by new "transitional" rules and regulations when the MFA runs out at the end of the year, there is no accord yet on just how this should be done.

"We are waiting for an agreement on the Uruguay Round", says an Asian trade expert.

Textile exporting nations met in Shanghai in May this year to consider options for the future. They are clearly anxious to improve their trade performance with the EC and other western markets.

Asian exporters are insisting that while they accepted a 17-month "bridging agreement" for the MFA, last July, they will be demanding more substantial improvements in their textile and clothing exports this time around.