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