The Hindu Business Line : Textile bodies call for steps to ward off `Chinese monopoly'

A STATEMENT, signed by 90 textile organisations from 49 countries round the world, today called on political leaders and WTO officials to ``either extend the current quota regime or devise new protection system'' and to ensure implementation of a methodology which can either ``crack down'' on cheap textile imports from China or ``face economic, political and social unrest around the world.''

The 49 global textile organisations state that the proposed removal of import quotas on textiles at the end of 2004 would lead to Chinese ``monopoly'' in the global textile trade that would force the textile industry elsewhere in developing and even developed countries to shed 30 millions jobs.

The statement states: ``A crises of unprecedented dimensions and clothing is now at hand." In the aftermath of a deal struck in the Uruguay Round of global trade talks which proposes abolition of import quota system in textile at the end of this year. Obviously, this will lead to substantial textile and garment imports by European Union and US of clothing and garment from China. The worst affected countries could be Sri Lanka and Bangladesh.

It is stated that Chinese textile exports have increased by 794 per cent in global trading areas where textile quotas have been removed. It remains to be seen how the US and European Union can `' crack down'' on growing textile imports from China as they are signatories to the Uruguay Round of Talks.

India's current textile and garment export to the European Union is around $ 4-5 billion mark and has been stagnant for last few months. However, Indian textile and garment industry is making special efforts to specialise in core fashion textile and fashion garments, designed and created by upcoming generation of young Indian fashion designers.

``They are now increasingly noticed on the global textile map but have yet to make their mark'' - as an Indian textile observer here put it. India is not a signatory to the 49 organisations appeal to European and American politicians to take action to curb the Chinese imports.

According to an Indian diplomat, India's prefers abolition of quotas and restrictions as ``we propose to flourish in an open market''. China's current textile and garment trade with the European Union may be nearing $ 20-billion mark by the year-end, accounting for a nearly a third of entire Chinese exports to the European Union.

European Union imported textiles and garments worth $ 66 billion at end of 2003. This will grow substantially next year, after abolition of textile quotas and it remains to be seen which countries can be main beneficiaries. The Indian textile and garment manufacturers operating in the EU countries one talks to feel that days of cheap textiles and garments are coming to an end, at least for India, which has a vast potential to specialise in up-market textiles and fashion garments, devised and promoted by indigenous fashion designers.

Meanwhile, business leaders across the world are urging politicians to make trade talks a ``top priority'' as it is argued that lack of progress on Doha round is hampering global growth according to a recent survey of 1,200 business leaders from 90 countries. The Doha world trade round has been stalled since the failure of Cancun conference in Mexico in September and according to business leaders it is very important for their business or countries economy that Doha round gets back on track to boost principles of free trade.