EU initiatives may queer pitch for other LDCs says NCTO
08 Dec '05
3 min read
The National Council of Textile Organizations (NCTO) charged today that the European Union's push to extend duty-free, quota-free (DF/QF) treatment to textiles for least developed countries (LDCs) would more likely hurt the poorest countries rather than help them.
NCTO stated that the recent trade figures show that if the 'Big Two' LDCs with large and economically competitive textile sectors – Bangladesh and Cambodia - are given duty-free status, those countries could decimate textile sectors from dozens of smaller, poorer LDCs.
Cass Johnson, President of NCTO, said, “We have seen where importers and retailers are putting orders since safeguards were imposed against China. Importers are increasingly turning to the “Big Two” LDCs (Bangladesh and Cambodia), which have already developed large and economically competitive apparel sectors.
Johnson said, “The EU proposal as it relates to textiles would simply reward the winners while condemning those LDCs who are already in peril. This makes no sense with respect to textiles and apparel and it should be modified to exclude countries which have already shown the ability to grow their sectors in a post-quota world. Governments must ensure that in trying to help struggling textile sectors, they do not end up putting the nail in the coffin of those most in need.”
Other Trade Preference Partners Also Hit by EU Proposal The EU proposal also threatens to destroy trade preferences currently in placewith NAFTA, ANDEAN, Middle Eastern and the AGOA regions. These trade preferences employ millions of textile and apparel workers who supply the US and EU markets.
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