Apr 21, 1998
US, EC URGED TO ACCELERATE TEXTILES TRADE INTEGRATION
Geneva, 19 Apr (TWN) -- Developing country exporters of textiles and clothing products, have expressed their serious concern that the United States and the European Communities have left the elimination of virtually the entire set of restrictions on imports of these products towards end of the transition period under the Agreement on Textiles and Clothing (ABC).
The concern is in a communique issued by the Council of the International Textiles and Clothing Bureau (ITCH), the alliance of developing country exporters, after the meeting last week at Maldives.
The US and EC have not been identified as such, but only as the "two largest restraining countries" maintaining restrictions under the old multi-fibre agreement (MFA).
At the Maldives meeting, the ITCH assessed the outcome of the first major review of the ABC implementation by the WTO Council for Trade in Goods.
The communique acknowledged that two of the four importing countries maintaining the MFA restrictions (a reference to Norway and Canada) have now taken positive steps for early elimination of certain restrictions.
But the two largest restraining countries had left the elimination of virtually the entire set of restrictiions towards end of the transition period under the ABC.
The 10-year transition period ends on the midnight of 31 December 2004. The ITCH called upon the US and EC to take immediate steps to liberalize trade in the sector and underscored the importance of the importing countries allowing for continuous autonomous industrial adjustment and increased competition in their markets in order to facilitate the integration of the textiles and clothing sector into GATT 1994.
The ITCH Council noted the "recent deceleration" in the invocation of transitional safeguard actions, and expected that future actions, if any, shall abide by the disciplines of the ABC and the guidelines established by panel decisions.
The United States had invoked transitional safeguard provisions soon after the entry into force of the WTO, and the ABC, to deter imports, and a number of its actions were challenged before WTO dispute settlement panels. Either as a result, or to avoid adverse rulings, the US withdrew or modified its 'safeguard actions'.
The ITCH also regretted the failure of certain restraining countries to provide meaningful increases in market access for small suppliers and least developed countries.
Reviewing developments on the harmonized work programme of the WTO under the Agreement on rules of origin, the ITCH expressed its determination to ensure that the outcome does not undermine or impede access to markets.
The ITCH also expressed its grave concern over the "arbitrary use of repetitive anti-dumping actions" by one major developed importing country -- a reference to the EC's actions against several of the Asian exporters -- especially against products already under severe quota restraints.
The ITCH "noted with apprehension", the imposition of visa requirements by another major developed importing country for integrated products in the absence of any justification under WTO provisions and called for its immediate review by the Textiles Monitoring Bureau.
The ITCH concerns relate to the US actions, in respect of textiles and clothing products that have been "integrated" by the US into GATT 1994 (and thus only subject to normal GATT non-discriminatory restrictions or rules) requiring certificates of origin from developing country exporters.