Trade figures show that NAFTA, CAFTA, AGOA and the ANDEAN region are all suffering in a post-quota world while exports from the 'Big Two' are increasing rapidly. In addition, recent smaller gains by the Middle Eastern countries (Jordan, Egypt and Israel) could be wiped out by giving 'Big Two' duty-free status. Johnson warned that “By turning a few select LDCs into “super competitors,” the EU proposal could cause widespread unemployment in textile sectors throughout these regions.”
China is Also Big Beneficiary of EU Proposal
One of the biggest beneficiaries of the EU proposal is China's subsidized textile sector. According to UN data, China (including Hong Kong) supplies 60 percent of the Big Two's fabric needs. With duty-free status, Chinese exports of subsidized fabric would increase dramatically as apparel exports from other trade preference areas and LDCs shift to the Big Two.
Thus, the EU proposal would imperil billions of dollars in fabric exports from other countries to those regions, threatening textile sectors in the United States, Mexico, the Andean Region. In addition, because the EU proposal would eliminate current origin rules for Bangladeshi exports to the EU, textile producers in India and Pakistan could lose nearly $75 million in fabric exports.
The National Council of Textile Organizations is a unique association representing the entire spectrum of the textile sector. From fibers to finished products, from machinery manufacturers to power suppliers, NCTO is the voice of the US textile industry.
National Council of Textile Organizations
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