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Contact:
Cass
Johnson
December
7, 2005
202-822-8025
Trade
Groups from AFRICA Say Trade Preferences Must be
Preserved in Hong
Kong
ACTIF
Joins Western
Hemisphere
Groups in Strongly Opposing
LDC
Duty-Free, Quota-Free Initiative for Textiles as
Destructive
to
African Textile and Apparel
Industries
Calls
a “Textile Sectoral” a Must-Have in
Hong
Kong
Washington
DC)
Today, the African Cotton and Textile Industry
Federation (ACTIF) joined textile and apparel
groups in the CAFTA/NAFTA/ANDEAN countries in
calling on their respective governments to insist
that existing trade preferences concerning textile
and apparel products be preserved at the Hong Kong
Ministerial.
ACTIF
said that trade preferences currently given to its
member countries must not be negated or eliminated
by new tariff schemes proposed by other
countries.
This includes an EU-backed proposal that
all least-developed countries (LDCs) be given
duty-free, quota free (DF/QF) access for textile
products. ACTIF
pointed out that giving new duty-free status to
“super-competitors,” such as
Bangladesh,
would cost jobs in vulnerable African textile and
apparel sectors. ACTIF
member countries already receive duty-free,
quota-free access as part of the AGOA trade
preference program with the
United
States.
Jas
Bedi, Chairman of ACTIF, said, “Thanks to trade
preferences in place in the US and EU, African
textile and apparel exports now provide jobs for
hundreds of thousands of African workers that had
no jobs before. We appeal
to our governments to make sure these trade
preferences remain intact and that our textile and
apparel sectors are not given away to countries
seeking to eliminate or negate our preferences
through drastic tariff cuts or other tariff
schemes,
including the EU-backed LDC duty-free,
quota-free initiative.”
ACTIF
also joined Western Hemisphere trade groups in
calling for textile and apparel products to be
removed from the industrial products
classification in the NAMA talks and be put in a
separate sectoral on
market access during the upcoming Hong Kong
Ministerial.
ACTIF noted that the objective of such a
sectoral negotiation must be to preserve
existing trade preferences.
ACTIF
is a pan-African textile association and
represents textile and apparel associations from
13 African nations, including Botswana, Egypt,
Ethiopia, Kenya, Lesotho, Madagascar, Malawi,
South Africa, Swaziland, Tanzania, Uganda, Zambia
and Zimbabwe.
ACTIF
also noted that hundreds of thousands of recently
created textile and apparel jobs in
Africa
are threatened by devastating tariff cuts proposed
by China
and other countries under a Swiss Formula approach
in the industrial products classification.
These tariff cuts would cause most
U.S.
textile tariffs to drop below five percent and
destroy the trade preferences currently in place
in the AGOA, CAFTA, ANDEAN and NAFTA
countries.
Textile and apparel
exports from the ACTIF countries totaled almost $5
billion last
year.
Cass
Johnson , President of
NCTO, said, “The
addition of ACTIF to our efforts represents a
growing chorus of voices that insist their textile
and apparel sectors not be handed over to
China
or other countries seeking to eliminate textile
trade preference programs. The Hong
Kong Ministerial must not be a guise for dis-enfranchising millions of
workers in Africa
and the Western
Hemisphere
that depend on textiles and apparel for their
livelihoods.”
The
groups noted that only in a separate textile sectoral negotiation can the
need for a special safeguard or other compensating
mechanism against
China’s
unfair trade practices be discussed. Prior
to the introduction of safeguards earlier this
year, Chinese textile and apparel exports to the
U.S.
and EU market increased by $9 billion while
exports from developing countries decreased by $5
billion.
In
the WTO draft text issued by Director General Lamy
recently, it stated that a textile and apparel
sectoral was now under active discussion by member
states.
However, the draft text also contained
language that would grant
Bangladesh
duty-free, quota-free access for textile
products.
Since quotas were removed, exports of
textile and apparel products from
Bangladesh
to the United
States
have increased by more than $400 million, while
African exports have declined by almost $50
million.
For
more information,
see:
NCTO
Release- “NCTO
Warns that LDC Initiative Could Destroy African,
Middle Eastern and Western Hemisphere Trade
Preferences”, 12/5/05: http://www.ncto.org/newsroom/pr200540.pdf
NCTO
Release – “NAFTA, CAFTA, ANDEAN Trade Groups Say
Textile Sectoral is a Must-Have in
Hong
Kong,”
12/14/05: http://www.ncto.org/newsroom/pr200537.asp
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