National Council of Textile Organizations (NCTO) released price data demonstrating that African producers of apparel products would suffer if duty-free, quota-free access was granted to Bangladesh, an LDC with an already competitive textile sector.
NCTO released the data in response to the statement by DePak Patel of Zambia, LDC Coordinator today:
It is difficult to understand why, if duty-free, quota-free market access was provided to all LDCs, including Bangladesh and Cambodia, the textile industry of Lesotho and Uganda would suffer.
NCTO President Cass Johnson noted: “The price data below shows clearly that giving Bangladesh zero duty for textiles and apparel will actually hurt, not help, African exporters. In the intensely competitive textile and apparel market, sourcing decisions are made based on pennies per garment."
If the super-competitive Bangladesh apparel sector were given zero duty status, then there should be no illusions that importers will move their orders from African producers, among others, to Bangladesh.
In fact, in every major apparel category that Africa exports in, Bangladesh with zero duties beats African prices by between 18% to 40%. There is not a single instance of a single African producer beating Bangladesh on price in any of their biggest export categories.
"In trying to help LDCs, the WTO must take care not to do harm by placing one or two countries above all others and thereby dis-enfranchising the rest. This would make a mockery of the intent behind the initiative proposal. This price data demonstrates why the African textile and apparel sector has united against the proposal to give Bangladesh zero duty status.”
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 U.S. textile industry.
National Council of Textile Organizations
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