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• US/EU TEXTILE ORIGIN RULES DEPRIVE DEVELOPING COUNTRIES OF OVER $20 BILLION WORTH OF TRADE ANNUALLY (December 2007)
  

  In a simple, matter-of-fact study conducted for the International Centre for Trade and Sustainable Development, Geneva, ITCB demonstrates how the conditionality of US/EU origin rules to use their yarns and fabrics to be able to benefit from tariff preference deprives developing countries of $20 billion worth of trade annually.
  

Impact of Origin Rules for Textiles and Clothing on Developing Countries

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• CHOICES FOR DEVELOPING COUNTRIES IN SETTING NATIONAL BRAND STRATEGIES (September 2007)
  

  In a presentation at the China (Dalian) International Garment and Textile Fair, ITCB Executive Director argues that in view of the pre-eminent position held by mega retailers in major developed country markets, developing countries could do well to focus on domestic markets and to encourage national champions to exploit the advantage of home turfs before these markets were also overtaken by foreign brands. He also urged that, over time, such national champions try to tie up with other players within the region and create mutual synergies for their long-term development.
  

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• ITCB MEMBERS RALLY BEHIND THE TARIFF-CUTTING FORMULA
  

  At the ITCB Council of Representatives meeting held in Guatemala on 16-19 April 2007, its members expressed confidence in the efficacy of the Swiss formula for addressing tariff peeks and tariff escalation in the sector and underscored that any sectoral initiatives had to be only on a non-mandatory basis. Reductions in tariffs on industrial products are one of the subjects of negotiations in the on-going WTO talks. The so-called Swiss formula has the effect of reducing higher tariffs by relatively bigger proportions.
  

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• ITCB EXECUTIVE DIRECTOR ON CURRENT STATE OF TEXTILE TRADE AND MAIN INTERNATIONAL POLICY CHALLENGES
  

  In remarks to the 2nd Asian Textile Conference in New Delhi on 18 – 19 January 2007, ITCB Executive Director gave an overview of developments in textile trade and of the context of current policy challenges. The text of his presentation is provided here.
  

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• MODELLERS OFF MARK; EU/US TRADE POLICY REMAINS THE PROMINENT INFLUENCE
  

  In a presentation at a UNDP-sponsored event in the margins of Sixth Ministerial Conference in Hong Kong, ITCB Executive Director reviewed developments in EU/US textile and clothing imports since the lifting of quotas, showing that while predictions about dire consequences were largely proving unfounded EU/US trade policy was the predominant factor in constraining the prospects for several exporting economies.
  

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• ITCB EXECUTIVE DIRECTOR SPEAKS ON CALLENGES FACING DEVELOPING COUNTRIES IN THE NEW PHASE
  

  Speaking at the Geneva Dialogue on Trade Policy jointly organized by UNDP’s Asia Trade and Investment Initiative and the South Centre, ITCB Executive Director presented his reflections on emerging trends in trade and trade policy post the abolition of textile quotas and the challenges emanating from these trends.
  

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• US/EU AGREEMENTS WITH CHINA TO LIMIT IMPORTS OF TEXTILES FROM CHINA
  

  Since before the abolition of all quota restrictions pursuant to the Uruguay Round Agreement on Textiles and Clothing (ATC), US/EU industries had been campaigning for steps to limit these imports. In the face of these campaigns, both US and the EU pressured China into agreeing to the re-imposition of limits on some categories of China’s textile exports under provisions of the Protocol of Accession of China to the WTO. Summaries of Agreements are provided here.
  

• US – China Textile Agreement





• EU – China Textile Agreement

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• STUART HARBINSON UPBEAT ON TEXTILE TRADE PROSPECTS
  

  Speaking at the ITCB Council session in Bali, former ITCB Chairman Mr. Stuart Harbinson, who is now Director in the Office of WTO Director-General observed that "Textiles and clothing will clearly remain a subject for debate in the WTO, at least in the foreseeable future. However, we should be confident that, when the dust will have settled and some time passed, it will be clear that, in this sector as well as in any other sector of trade, the benefits of liberalization will in the end outweigh the inevitable adjustment problems.
  

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• AN EMINENT ANALYST ASSESSES THE US TEXTILE AND CLOTHING MARKET IN THE COMING YEARS
  

  Speaking on behalf of the US National Retail Federation at the ITCB session in Bali, Laura Baughman, President of the Trade Partnership, an economic consulting firm in Washington, DC, surveyed the trends in US apparel consumption and trade, estimating that exporters could expect US import market to grow to $120 billion by 2010 - 73% more than in 2004.
  

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• ITCB VOWES TO MAKE DETERMINED EFFORTS AT FURTHER LIBERALIZATION.
  

  In a communiqué issued at the conclusion of its 41st session, ITCB Council of Representatives, meeting in Bali, Indonesia, resolved to make determined efforts for further liberalization of trade in textiles and clothing, noting that although the long-standing quota regime had ended, trade in the sector continued to be impacted by targeted policy intervention at the hands of major developed economies.
  

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• THE INDONESIAN INDUSTRY MINISTER COUNCELS ITCB TO RISE TO THE CHALLENGE OF NEW OPPORTUNITIES
  

  In his keynote speech at the inauguration of ITCB's 41st Council session, Indonesia's Industry Minister highlighted the challenges facing developing country exports, advising that their continued unity and solidarity would yield even better dividends.
  

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• REFORMING ORIGIN RULES CRITICAL TO SUSTAINING SMALLER COUNTRIES' APPAREL EXPORTS.
  

  In a presentation to an UNCTAD meeting on strengthening the participation of developing countries in certain dynamic sectors of trade, ITCB Executive Director analysed the constraining impact of stringent origin rules on developing counties' apparel exports, and emphasised the importance of multilateral action for their reform to help sustain these exports as well as the growth of South-South trade.
  

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• WTO APPEARS DISTANCING ITSELF FROM ITS TEXTILES STUDY.
  

  Apparently in the face of severe criticism, the WTO Secretariat has issued an important qualification on its website to counsel caution when reading the study.
  

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• TRADE POLICY REMAINS THE DRIVER IN TEXTILES AND CLOTHING.
  

  In a paper inspired by recent WTO study on textile quota phase-out, ITCB Executive Director argues that US/EU policy intervention - with its accent on advantaging domestic producers - continues to remain the driver behind trade flows in the sector, points to its problematic for sustainability of exports from certain countries, identifies the issues that need addressing, and suggests a way forward.
  

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• WTO PUBLISHES A STUDY OF QUESTIONABLE VALIDITY.
  

  WTO has recently published a staff study on the impact of MFA/ATC quota phase-out. Reviewing the study before ITCB members, the Executive Director pointed to a host of analytical and methodological deficiencies in the study, such that bring into question the reliability of its results. Salient points of his presentation are available here.
  

• ITCB ELECTS A NEW CHAIRMAN TO SUCCEED MR. HARBINSON

  At its special session on 25th September 2002, ITCB Council of Representatives elected H.E. Mr. K.M. Chandrasekhar Ambassador and Permanent Representative of India to the WTO to be the chairman of the Bureau in succession to Mr. Stuart Harbinson of Hong Kong-China. Also accepted Egypt’s invitation to host the 2003 session in Cairo.
  

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• ITCB MEMBERS MAKE A STRONG CASE AT WTO FOR ADOPTION OF MARKET ENHANCING PROPOSALS.  (July 31 2002)
  
  

  WTO General Council discussed proposals referred by Doha Ministerial aimed at enhancing quota access in restraining countries. Participating in the debate, several ITCB members spoke strongly in favour of their adoption, arguing that they will go some way towards redressing the imbalance caused due to ineffectual ATC implementation thus far. Statements by Hong Kong - China, Pakistan, China, Brazil, Bangladesh, Thailand, (which also spoke on behalf of Indonesia) and India follow.
  

• EC REVIVES ANTI-DUMPING INVESTIGATION ON BED LINEN.
  (18 February 2002)
  

  The anti-dumping action on bed linen does not seem to go away, again underscoring the need for reining in the misuse of such actions. The EC has restarted the investigation into alleged dumping of cotton bed linen by Indian firms on the EC market. The action comes despite a WTO Ministerial Decision at Doha to exercise particular consideration before initiating anti-dumping investigations on textile and clothing exports from developing countries.
  

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• EUROPEAN UNION'S NEW GSP SCHEME -- FINAL REGULATION MODIFIES SOME EARLIER PROPOSALS.
  (10 January 2002)
  

  The new GSP scheme of the European Communities (EC) has since been published in the Official Journal of the Communities dated 31 December 2001. Certain provisions of the scheme are somewhat different than the original proposals submitted by the Commission.
  

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• DOHA WTO MINISTERIAL POSTPONES DECISION ON KEY TEXTILE-RELATED PROPOSALS.
  (14 November 2001)
  

  In the face of stiff resistance by Canada and the US, consensus could not be reached on two recommendations contained in the paper on implementation-related issues that was forwarded to the Ministerial Conference by the Chairman of the WTO General Council. Ministers referred them for decision through the normal WTO process by 31 July 2002.

  Developing countries had argued that their approval was necessary to make up for the ineffectual liberalization of quota restrictions thus far, and the impairment to their rights under the WTO Agreement by a host of other measures including unjustified new restrictions, changes in origin rules, anti-dumping actions, etc.

  Ministers' decisions on implementation-related issues follow. They include those on the Agreement on Textiles and Clothing.
  

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• ITCB MINISTERS URGE DOHA WTO CONFERENCE TO ADOPT IMMEDIATE MEASURES FOR MEANINGFUL LIBERALIZATION OF QUOTA RESTRICTIONS.
  (9 November 2001)
  

  In a joint statement circulated by ITCB ministers, at Doha Ministerial Conference of the WTO, they reiterate disappointment that major developed countries have not yet delivered on their commitment to liberalize trade in textiles and clothing. Urge immediate action for meaningful results.
  

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• DEVELOPING COUNTRIES DEMAND ACTION TO RESTORE THE BALANCE OF THEIR RIGHTS.
  (26 October 2001)
  

  Summing up discussions in the WTO Council for Trade in Goods (CTG) on the second major review of ATC implementation, Chairman ITCB reiterates developing countries' concerns that the balance of rights accruing to them under the ATC is being impaired, and makes proposals to secure its restoration.
  

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• CHAIRMAN ITCB ADDRESSES WTO COUNCIL FOR TRADE IN GOODS
  (27 September 2001)
  

  Speaking to the WTO Council, Acting Chairman ITCB pleads for a thorough review of whether obligations under the Uruguay Round Agreement on Textiles and Clothing being faithfully observed. Stresses that seven years into the agreement little progress made towards eliminating quota restrictions on developing country exports. Asks for corrective steps to redress the situation.
  

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• DEVELOPING COUNTRIES SAY THEIR RIGHTS UNDER ATC BEING IMPAIRED
  (27 September 2001)
  

  In a communication to the WTO, exporting developing countries complain their rights under the Uruguay Round Agreement on Textiles and Clothing are being impaired. Making a detailed case that the Agreement is not being implemented by the restraining countries in accordance with its object and purpose, they ask the WTO's Council for Trade in Goods to take appropriate decisions and ensure that their rights are restored.
  

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• US TEXTILE INDUSTRY REVIVES A FAMILIAR STRATEGY
  (27 July 2001)
  

  Capitalising on the success of the US steel industry in securing presidential intervention for import protection, textile lobby asks President Bush to initiate countervailing duty and anti-dumping actions against imports from developing countries. (This, despite protection enjoyed by it through imposition of quota restrictions for over forty years.) Also urges the President not to include textile tariff reductions in the event of a new trade round.
  

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• CANADA ACKNOWLEDGES DEFICIENCY IN ITS ATC IMPLEMENTATION
  (12 July 2001)
  

  In yet another vindication of developing countries' concerns about ATC implementation, Canada has acknowledge that its integration programme for stage 2 fell short of the minimum requirement of 17% by over 4 percentage points, i.e., by about a quarter.
  

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• VISA REQUIREMENT ON INTEGRATED PRODUCTS: TMB LEAVES IT UNCERTAIN  (29 June 2001)
  

  Stops short of pronouncing clearly that continuation of the discriminatory requirement on developing countries is not consistent with faithful implementation of the Textiles Agreement (ATC).
  

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• Mr. PASCAL LAMY RESPONDS TO ITCB CONCERNS  (19 June 2001)
  

  Replying to ITCB letter, Commissioner for Trade of the European Commission, accepts that increased trade following liberalization of quota restrictions will be conducive to sustainable development.
  
  Regarding EC approach to integrating sustainability concerns into trade policy, see text of ITCB letter in a related item.
  

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• ITCB COUNCIL EXPRESSES FRUSTRATION, DISAPPOINTMENT  (14 June 2001)
  

  ITCB Council concludes its session in Rio de Janeiro calling upon the restraining countries to allow developing countries the benefits promised under the ATC. Resolves to resists any trade harassment by unjustified recourse to anti-dumping, safeguards or changes in origing rules.
  

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• MEETING WITH 133 COMMITTEE/TEXTILES   (Brussels 30 May 2001)
  

  16 ITCB delegates travel to Brussels to meet with 133-Committee/Textiles of the European Commission, responsible for textile policy issues. ITCB Vice-Chairman highlights concerns over several elements of EC policy.
  

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• REQUEST FOR INFORMATION FOR THE COMPREHENSIVE REPORT OF THE TMB ON THE IMPLEMENTATION OF THE AGREEMENT ON TEXTILES AND CLOTHING  (23 May 2001)
  

  ITCB responds to Chairman TMB's request for elaboration of certain points in its submission (see related item). Makes it obvious that elements of restraining countries' implementation inconsistent with their WTO obligations and objective and purpose of ATC.
  

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• ITCB EXPRESSES CONCERN ABOUT EU IDEAS ON INTEGRATING SUSTAINABILITY INTO TRADE POLICY   (25 April 2001)
  

  In a letter to Mr. Pascal Lamy, the European Commissioner for Trade, ITCB members express serious concern about ideas that the European Commission is considering to avoid what it calls the likely undesirable environmental and social impacts of liberalization of quota restrictions. Express the hope that it does not result in new conditions to retard developing countries access opportunities.
  

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• ITCB PROVIDES DETAILED COMMENTS TO THE TMB IN CONNECTION WITH PREPARATION OF ITS COMPREHENSIVE REPORT ON ATC IMPLEMENTATION IN STAGE 2    (11 April 2001)
  

  In response to TMB invitation to WTO Members for comments in connection with the preparation of its comprehensive report on implementation of ATC during the second stage, ITCB members file joint comments. Members ask the TMB to make objective assessment and conclude that the central objective of integrating the sector into GATT remains largely unfulfilled, with significant adverse implications for the balance of rights of developing countries under the ATC.
  

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• SEVEN ITCB MEMBERS ASK WTO COUNCIL FOR TRADE IN GOODS TO REVIEW A US QUOTA MAINTAINED IN VIOLATION OF ATC   (17 April 2001)
  

  In a case brought by seven ITCB Members, the US pressured Turkey into accepting a quota on its exports of underwear to the US market. Lacking any justification under the ATC, the US chose not to notify to the TMB or any other body of the WTO. On ITCB's persistence, the TMB ruled that the restriction violated US's WTO obligations. Despite that, the US continues to refuse to lift the restriction. Wary of the precedent, developing countries recall that similar US pressures led to a virtual institutionalisation of restrictions on their exports of textiles and apparel under the Multi-fibre Arrangement that governed trade in the sector for over thirty years.
  

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• WTO AGREEMENT ON TEXTILES AND CLOTHING - EVALUATION OF IMPLEMENTATION   (3 August 1999)
  

  ITCB members' critique of ATC implementation, provision by provision, submitted to WTO General Council. Brings out how, after six years, only a few quotas have been dismantled, how developed countries have failed to live up to the promise of progressive liberalization, and how rules of origin, anti-dumping actions and administrative procedures were being used to undermine developing country exports in the sector.
  

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• WTO GENERAL COUNCIL - SPECIAL SESSION ON IMPLEMENTATION ISSUES 22 JUNE/3 JULY 2000 - STATEMENT BY CHAIRMAN OF ITCB   (22 June 2000)
  

  In calling for a genuine dialogue on evaluation of implementation of Uruguay Round Agreement on Textiles and Clothing over six (out of a total of 10) years, ITCB Chairman makes a telling case for immediate steps for credible and meaningful liberalization of quota restrictions.

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• AGREEMENT ON TEXTILES AND CLOTHING - CURRENT STATE OF IMPLEMENTATION AND LIKELY FUTURE MULTILATERAL SCENE   (10 November 2000)
  

  Speaking to a seminar of ASEAN textile industries, ITCB Executive Director expresses confidence about final elimination of quota restrictions by developed countries. Brings out export opportunities and challenges lying ahead.

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• INTEGRATING SUSTAINABILITY INTO TEXTILE TRADE POLICY - EC STYLE: AN APPRAISAL AND A COMMENT  (14 February 2001)
  

  An EU discussion paper raises concerns about protectionist implications from ideas supposedly intended to promote integration of environment and social issues in textile trade policy.

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• WHY CONTINUATION OF VISA REQUIREMENT FOR INTEGRATED PRODUCTS IS NOT CORRECT...  (26 February 2001)
  

  Visas have been a requirement on developing countries due to quotas. Being discriminatory, they were inconsistent with GATT principle of MFN. Their continuation for liberalized products will not be in conformity with full integration under ATC.

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• STATEMENT BY MINISTERS OF MEMBERS OF THE ITCB AT THE THIRD SESSION OF THE WTO MINISTERIAL CONFERENCE   (Seattle, 30 November - 3 December 1999)
  

  Ministers express disappointment that liberalization of long-running restrictions by major developed importing countries on imports of textiles and clothing from developing countries has failed to be progressive in character. Call developed countries to substantially open their markets to imports of textiles and clothing, a sector in which developing countries enjoy comparative advantage. For so long as they do not do so, expectations created by the Uruguay Round will remain unfulfilled.
  

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• STATEMENT BY MINISTERS OF MEMBERS OF THE ITCB AT THE SECOND SESSION OF THE WTO MINISTERIAL CONFERENCE   (Geneva, 18 and 20 May 1998)
  

  On the occasion of the 50th anniversary of the multilateral trading system, ITCB Ministers call upon the developed restraining countries to avoid protectionism in the textile sector. Urge them to demonstrate leadership and commitment to trade liberalization and non-discrimination.
  

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• ITCB CHAIRMAN SPEAKS AT THE TEXTILE AND APPAREL IMPORTERS TRADE AND TRANSPORTATION CONFERENCE   (New York, 3 November 1999)
  

  Urges that there could be no better way to raise living standards -- and labour standards -- in poor countries around the world that for major developed countries to open their markets to imports of textiles and clothing. Remarks that "For so long as they do not do so, or are seen as reluctant, all the rhetoric from developed countries about labour standards will be seen as hollow and lacking credibility".
  

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