WHAT KIND OF MARKET ACCESS PATTERN SHOULD WE PROMOTE
FOR TEXTILES AND CLOTHING WITHIN THE DDA ?
WHERE ARE THE MARKET ACCESS NEGOTIATIONS UP TO ?
- A compromise in Cancùn (DERBEZ text)
- No progress in the NAMA text of July 2004
- Months of work in the Working Group in Geneva since 2002
- A stock-taking opportunity at the WTO Ministerial Conference (December 2005)
THE POSITION OF THE EUROPEAN TEXTILE AND CLOTHING INDUSTRIES
- A sectoral tariff negotiation
- An objective of 15 % tariff worldwide for textiles and clothing
- An ambitious commitment in the field of non
tariff barriers
WHY A SECTORAL NEGOTIATION
FOR TEXTILES AND CLOTHING ?
- High level of tariffs compared to other industrial goods (chemicals for example)
- Significant disparity between bound tariffs
- Significant diversity of non tariff barriers
STATE OF PLAY OF T-C TARIFFS
Source : Euratex
Average Bound & Applied tariffs in the TC industry selected markets
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
40,0
%
Bound tariffs in 2005 Applied tariffs in 2002
* For Egypt, Thailand, more than 20% of 6-digit HS lines not bound or no ad valorem duty, ** For India 33% of 6-digit HS lines are unbound,
Source: WTO World Trade Report, 2004 - Appendix table 4
EXAMPLES OF NON TARIFF BARRIERS
Source : Euratex
Disproportionate technical regulations or standards, or conformity assessment or certification rules,
Formal or informal minimum import price requirements,
Rules, procedures or practices for pre-shipment inspection that are discriminatory, non-transparent, excessively lengthy,
Excessively burdensome, costly or arbitrary rules, procedures or practices concerning the certification of the origin of products,
EXAMPLES OF NON TARIFF BARRIERS
Source : Euratex
Non-automatic or discretionary licensing requirements,
Requirements or practices concerning marking, labelling, the description or composition of the product which are discriminatory as compared with domestic products,
Unduly long customs clearance delays or excessively burdensome, excessive or costly customs procedures,
Subsidies damaging to the domestic textile and clothing industries.
OPEN AND CLOSED MARKETS
THE FUTURE OF TEXTILES AND LOTHINGTHE FUTURE OF TEXTILES AND LOTHINGAFTER 2005AFTER 2005
Brussels Brussels -- May 5th & 6th 2003May 5th & 6th 2003
Filiep LIBEERT - President
0
10
20
30
40
50
60
70
80
90
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Av
rgB
ou
ndt
ari
ff%
*
Number of Non tariff Barriers identified
* Source WTO « MarketAccess : unfinishedbusiness » – Table II.2 pg 11 and Euratex calculations for non tariff barriers
15%
IndiaIndia
ArgentinaArgentinaMexicoMexicoBrazilBrazil
IndonesiaIndonesia
EgyptEgypt
PR ChinaPR China
SouthSouth KoreaKorea
ThailandThailand
PakistanPakistan
PhilippinesPhilippines
USAUSA
S. S. AFricaAFrica
MalaysiaMalaysia
EUEU
CanadaCanada
ChileChile
AustraliaAustralia
JapanJapan
TaiwanTaiwan
MarketMarket Access Conditions for Textile Access Conditions for Textile andandClothingClothing : : SelectedSelected marketsmarkets in 2005in 2005
HIGH ProtectionHIGH Protection
HIG
H P
r ote
ctio
nH
IGH
Pr o
tect
ion
LOW ProtectionLOW Protection
LO
W P
r ote
ctio
nLO
W P
r ote
ctio
n
THE FUTURE OF TEXTILES AND CLOTHING AFTER 2005Brussels – May 5th & 6th 2003
WHAT KIND OF TRANSATLANTIC WHAT KIND OF TRANSATLANTIC PARTNERSHIP CAN WE BUILD IN PARTNERSHIP CAN WE BUILD IN ORDER TO OBTAIN RESULTS IN ORDER TO OBTAIN RESULTS IN
HONG-KONG ?HONG-KONG ?
FIRST CONCRETE PROPOSAL : COMMON KEY MARKETS
Whe should aim to :
- reach an agreement on the key countries for our exports and investments,
- exchange information on the barriers limiting our exports and investments on those markets
17 KEY MARKETS FOR EURATEX
Source : Euratex
ASIA : China, Japan, India, South Korea, Taiwan, Indonesia, Pakistan, Thailand, Malaysia
NORTH AMERICA : United-States, Canada
CENTRAL AMERICA : Mexico
SOUTH AMERICA : Brazil, Argentina, Chile
OCEANIA : Australia
AFRICA : South Africa
SECOND CONCRETE PROPOSAL : COMMON TARIFF REDUCTION
FORMULAWe should aim to :
- realise simulations on various formulas tabled in Geneva
- convince our respective governments to promote the most suitable formula for our industry
EXAMPLES OF TARIFF REDUCTION FORMULAS UNDER DISCUSSION IN THE NAMA WORKING GROUP
(GENEVA)
APPLIED AND
BOUND EU
TARIFFS 2005
EU « COMPRESSION »
FORMULA(2003)
USSWISS
FORMULA
(2003)
EURATEXFORMULAS
LOGA RITHMIC SWISS
YARNS 4 % 2,8 0(2010)
3,9 3,8
SEWING THREAD
5 % 3,5 0 (2010 )
5 4,6
FABRICS 8 % 5,4 3,2 7,4 7,1CLOTHING 12 % 8 4 9,4 10
IMPACT OF FORMULAS ON THE TARIFFS IMPACT OF FORMULAS ON THE TARIFFS OF SOME KEY COUNTRIESOF SOME KEY COUNTRIES
Countries Bound tariffs 2005
Compression
EU Formula
US
Swiss formula
Log formula
Euratex
Swiss formula
Euratex
Brazil 34,9 18,5 6,5 14,8 15
India 87,8 25 7,3 19,4 16,9
Indonesia 39,9 20,7 6,7 15,4 15,4
Pakistan 21,7 12,9 5,8 12,5 13,5
Thailand 29,2 16,1 6,3 14 14,5
BILATERAL AGREEMENTS COULD PROVIDE INTERESTING
« EARLY HARVESTS »
- EU/ USA relations in textile-clothing : room for improvement
- EU/ China relations : intellectual property, industrial policy (new safety Code for textile and clothing)
- USA/ China relations : intellectual property, currency issue etc
THE US MARKET FOR EU TEXTILE AND
CLOTHING INDUSTRIES
- An strategic market for our industries : fibres, fashion, technical textiles etc in 2002 : roughly 5 billion $ exports (Paneuromed) despite
- tariff peaks : combed wool fabrics (25 %), carded wool fabrics (25 %)…
- and few non tariff barriers : customs clearance delays (3 weeks), certification of the origin of products (depending on the fibres composition)…
THANK YOU FOR YOUR ATTENTION