Poor Countries Troubled By Textile Accord Cessation
By Maya Salleh

Bandar Seri Begawan - Yesterday marked the end of the Multi Fibre Agreement (MFA), thereby constituting that all quotas on textile imports lifted by World Trade Organisation (WTO) countries, including the European Union (EU).

Guardian news service reported that poorer Southeast Asian countries devastated by the tsunamis face a new shock for their fragile economies.

China and India were reportedly likely to be the main beneficiaries of the ending of the MFA but Bangladesh and Sri Lanka are among those observed to be left behind by their richer, more powerful neighbours.

The report added that this week China, which already supplies a fifth of the world's clothes and about 13.5 per cent of a global textiles market worth US$360 billion, responded to the concern that it would extend its dominance by announcing limited, very low duties on six categories of clothing, including pyjamas, blouses, skirts and overcoats, in an effort to manage trade.

But the WTO has signalled that China's share of the EU's clothing market will rise from 18 to 30 per cent and that of the US from 16 to 50 per cent.

China currently has 180 million textile workers. India's share of the EU market is likely to rise from 6 to 9 per cent and its global exports, from a workforce of 35 million, should hit US$50 billion by 2010 from US$11 billion now.

Poorer competitors such as Sri Lanka, the report said, which gets 71 per cent of export revenues from textiles, and Bangladesh (80 per cent) fear China (12 per cent) will squeeze them out by offering higher quality, cheaper goods to the west. -- Courtesy of Borneo Bulletin

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