World Trade Organization Director General Pascal Lamy expects trade tariffs to be lowered by most of the countries in order that textiles sector progresses.
Replying to a question posed by Fibre2fashion about the outcome of Doha Round Trade Talks and his opinion, Lamy said, "As you know the Agreement on Textiles and Clothing expired in 2005 bringing to an end the regime of quotas in this area; so from this aspect, trade in textiles is relatively liberalized. However, certain countries still maintain relatively higher duties on textiles and apparels. These duties, I hope, will get reduced as part of the negotiations on reducing tariffs on all manufactured goods."
Asked about the "spate of Free Trade Agreements 'happening' and whether it all tends to dilute the very role of World Trade Organization to facilitate free trade among Member countries, Lamy replied, "There is no doubt that lack of movement in the multilateral trade negotiations could result in countries concentrating their efforts in the establishment of free trade agreements. This would of course not augur well for freeing global trade as it goes against the notion of inclusion which is a fundamental principle of the WTO. The proliferation of RTA's and FTA's can also complicate the trading environment, by creating a "spaghetti bowl" of rules, with intricate rules of origin, as different from the situation, as would exist under the multilateral trading system, where a Member is bound by different obligations. This can also divert negotiating energy and resources from the multilateral for a; a situation of particular concern to developing countries, which are as it is hampered by lack of resources. At the same time it must be remembered that the real and more substantive gains in global trade will come from multilateral negotiations. If anything free trade agreements should be complimentary rather than substitute to the multilateral trade negotiations."
Speaking about the oucome of the Doha Round Talks, Lamy categorically put the blame on the lead players stating that “inability of the main players to unblock a deal on agricultural subsidies and agricultural tariffs” was the chief reason for it all.
Trade Chief Lamy's online chat can be viewed at the WTO website.
Fibre2fashion News Desk - India
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