US And European Manufacturers Set Joint Agenda
Source: Textileworld Date: 2007-06-18
Trade associations representing US and European textile manufacturers have joined together to present a united front with respect to textile and apparel trade, if and when, the stalled Doha Round of trade liberalization negotiations is resumed.
At the annual meeting of Eurocoton, the European trade organization representing the cotton and allied textile industries, officials of that group and the Washington-based National Council of Textile Organizations (NCTO) urged their respective governments to attack countries that use non-tariff barriers to protect their own industries while employing what they say are redatory trade practices?that undermine textile and apparel manufacturing in the United States and Europe.
Doha negotiations are supposed to increase trade, not hand it over to countries [that] do not play by the rules,?said Cass Johnson, president, NCTO. industries are strongly opposed to Doha solutions?currently under consideration that would allow the central government of China to dominate world productions of textiles and apparel under the guise of increased market access.?
Thomas Lanaras, president of Eurocoton, said the trade promotion formulas currently under consideration in the Doha Round do not take into account protectionist policies of China and other major exporting countries. He cannot support formulas [that] allow protectionist and high tariff walls while trading away the last defenses our industries enjoy,?Lanaras said. The governments should support a sectoral solution which, on the tariffs side, would be equitable by providing for tariff reciprocity at levels that would still preserve attractiveness to existing preferential tariff rates, rather than slash them.?
The Doha Round of negotiations was suspended last April when it became apparent there were vast differences on agriculture issues and the positions of the developed and developing nations in the manufacturing sectors. While US government trade officials remain optimistic about the chances for resumption of the talks, little progress has been made. Another key issue standing in the way of the negotiations is the question of renewal by Congress of the President of trade promotion authority (TPA), which expires at the end of June. Without TPA, officials in the United States and other countries agree, a successful round of negotiations would be impossible
While there is anything but a consensus on textile tariff cuts, US and European officials say that whatever is done must result in reciprocal market access.
With respect to another major issue ?removal of safeguard quotas on Chinese imports at the end of 2008 ?the European and US trade associations voiced their concern over the impact of freeing up trade in what are considered particularly sensitive product categories. According to officials of the two trade associations China has captured a two-thirds share of both the European Union and US markets where quotas have been removed in the past. They warned that their industries would be evastated?if quotas are removed from the product categories that still remain under quota control.
Both groups urged their governments to ensure that Chinese exports in key categories continue to be kept under quota restraints after the present safeguards expire.
By James A. Morrissey, Washington Correspondent
