ࡱ> ^`][@ 2bjbj44 %<ViVie*xxx8 QF2"EEEEEEE$GRILEE FEE+>XTE 5{=xoD6E$!F0QFE6!J!JlTE!JTEX(&<EEdxxCONFERENCE ON THE FUTURE OF TEXTILES AND CLOTHING AFTER 2005 Brussels, 5-6 May 2003 CONCLUDING REMARKS BY DR. K.A.A. RANA DEPUTY DIRECTOR-GENERAL ϲʹ ________________________________ Commissioner Lamy, Honorable Ministers, Your Excellencies the Ambassadors, distinguished participants, ladies and gentlemen, The debate at this Conference has been rich in concepts and illuminating in its depth. The large number of participants, and the variety of speakers from all kinds of stakeholders in textiles and clothing trade, have made it a unique event. At the outset, some observers may have been tempted to characterise this as a European event. But the participation of Asian, African, Latin American Ministers and American key players make it clearly global in content; and beyond any confining European interests. These facts are a testimony to Commissioner Pascal Lamy's foresight in convoking it. To summarize such an insightful event is a formidable challenge. We have had two very full days of remarkable analysis and forceful argument. Through our programme we have examined all the main aspects of textiles and clothing trade as well as identified the possible effects of the termination of the Agreement on Textiles and Clothing and a future quota-free environment. Furthermore, we have closely scrutinized issues from the multilateral framework itself and the prospects of the Doha Development Agenda, to the impact on both developed, developing and least-developed countries and the effects of EU enlargement, through aspects of sustainable development and labour rights, preferential arrangements, regional integration and multilateral market liberalisation. This has been a most revealing and informative experience. I have been asked to share with you some concluding remarks on possible ways forward. Commissioner Lamy will also enlighten us with his observations. Clearly, the final words have not been said. Rather, the issues raised provide food for thought, and suggest approaches that we need to closely examine in the foreseeable future. I would like to recall some of the issues raised, on my own personal responsibility. What I recall is certainly not verbatim, but touch on some of the more crucial issues, where further discussions, in the weeks and months to come, may guide us in a common direction. Let me try to highlight some of the more salient points, in my personal capacity. First and foremost, I have been able to detect the firm conviction of all concerned, in government as in the private sector, that normalization of trade relations in the sector of textiles and clothing firmly under the umbrella of the rules and disciplines of the ϲʹ will constitute a positive signal for the world economy. The importance of textiles and clothing for the trade development of developing countries was also recognised. On the other hand, not everything has been smooth sailing. Voices of dissent have also been expressed with candour and openness. This has indeed been an open and transparent forum. They remain important inputs into the debate. Whereas concern and scepticism have been expressed that the quotas under the ATC may be replaced with new barriers, the overall thrust has been that fulfilment of the commitments undertaken in 1995 will strengthen and consolidate the multilateral trading system. Combined with the right mix of policies, both at the domestic level as at the bilateral, regional and multilateral levels, the removal of the quota system will translate into substantial and tangible benefits for the development of developing and least-developed countries. The components and the instruments of a consistent textiles and clothing trade policy are right there, within the framework of the ϲʹ's rules and disciplines. To be sure, major restructuring challenges have been identified. The impact on industrialized and developing countries was thoroughly examined; the determination of both to face up to the consequences of their commitments, to work harder on their competitive levels, and to improve the conditions of access to their markets on a most-favoured-nation basis through the Doha negotiations was also quite clear. Indias process of liberalisation in the sector, through the elimination of import controls and the reduction and binding of Indias tariffs in textiles and clothing products are an important example of this determination. Future developments in Indias trade will bear this out. The potential problems for small suppliers and least-developed countries were frankly discussed; the resolve to find ways and means, including through preferential arrangements, financial assistance and capacity-building efforts, to assist these countries in their efforts was clearly evident. The Ministers from Bangla Desh, Mauritius and Sri Lanka have made detailed comments and explanations of the problems faced by least-developed and low-income countries from different perspectives. They received important expressions of understanding and support. The emergence of China as an export powerhouse was analyzed; its enormous potential as an import market was also highlighted. Chinas export growth in 2002 was clearly accompanied by equally, if not more, robust growth in imports. China also called attention to the fact that the textiles and clothing industries are some of the most globalised ones, with different operations being spread around different locations around the world. China's will to integrate responsibly and holistically into the multilateral trading system was also manifest. The ϲʹϒs transitional review of Chinas engagement in the multilateral trading system will continue testifying to Chinas commitments and responsibilities. In short, the determination of all actors to rise above these challenges has been clear to everyone. We have, in this Conference, explored practically all potential aspects of a trading world without the distorting effects of quantitative restrictions. The potential of the Doha Development Agenda to provide a further liberalizing momentum in the sector of textiles and clothing was carefully examined. May I recall that the DDA is coincidentally scheduled to conclude on the same date as the termination of the ATC. In this context, the particular relevance of the market access negotiations on non-agricultural products was emphasised. Brazil, Mexico, the European Union and the United States made clear their willingness to engage in substantive market opening initiatives. Many EU participants, however, kept mentioning the need for reciprocity in this exercise, in particular, from those developing countries that had achieved an important competitive advantage in the sector. At the same time, the flexibility embedded in the multilateral trading system through special and differential treatment in favour of developing countries and LDCs, and its potential to cover the issues and concerns of those in weaker competitive positions, within the multilateral framework of the ϲʹ, have also been clearly recognised. Analysis presented by speakers showed strong inter-linkages between the elimination of quotas under the ATC and the DDA negotiations on market access for non-agricultural products. A strong case was made for a modality that would entail deep tariff cuts along with harmonisation and accommodation for LDCs preferences. In any event, it was clear from developing countries interventions that interfering with the ATC process would upset relations among developing and developed countries and diminish their confidence in the DDA process. We have also considered the challenges and opportunities, both for governments as for the economic operators, that a quota-free world presents to us. Sustainable development and ethical trade in textiles and clothing have been discussed, with inputs from Ministers, academics, private sector, trade unions and civil society representatives. Sustainability issues are inescapable in considering the ATC process, and pose challenges as important to Africa, for instance, as to Europe. Sustainable development requires us to think about a different future. A representative of the ILO, the rightful forum for the discussions on labour rights, shared with us his relevant expertise and experience. It was clear that the ILOs comparative advantage in this work is its close relationship and association both with industries and with labour unions. Private sector participants, both from importers, retailers and industry, described in detail their efforts to uphold and promote social standards and basic human rights. The importance of respect for labour rights and the environment was emphasized. Questions posed included how to build trust, to guarantee that measures related to these issues are not protectionist, that the processes for their implementation are fair, and how to bring all actors together. The relevance of the ϲʹ and the DDA to people around the world was further highlighted. The challenges and opportunities of preferential arrangements and regional integration were discussed, along with the prospects for multilateral market openings. The emerging regional structures of the textiles and clothing industries, and the increasing interdependence of the industries of preferential and regional partners were examined. The Euro-Mediterranean policy, NAFTA and the Free Trade Area of the Americas (FTAA) negotiations in the Western Hemisphere testify to this. The Ministers of Tunisia and Turkey made forceful arguments on the close partnership that binds European and Mediterranean industries together. It was recognized that these arrangements will remain in place as one important and continuing feature of the international trading system, within the framework of the ϲʹϒs rules and provisions, as set out, among other things, in the Enabling Clause and Article XXIV of GATT 1994. In short, I have observed that each and every one of us, government, private sector, trade unions and civil society are more than willing to work within the multilateral trading system embodied in the ϲʹ. The strength and credibility of the multilateral trading system lies in the strict adherence to Members commitments to the expiry of the ATC and the elimination of the quota regime, without qualifications that would render such elimination meaningless. The challenges are large and multifaceted. They will certainly test the political will and commitment of all the stakeholders in the system. And they will put on trial the resilience of the system and its capacity to respond to the needs of all its Members. To conclude, let me borrow one sentence from Minister S. Siphana's statement, that is, what we need is a balance between competitiveness and solidarity with the LDCs. I thank you. PAGE  PAGE 2 U   8 Ii*Ffo111M2Q2X2e2f2l2m2n2p2q2w2x2y2z2{2}2~22ۮҥҷҷhh0JmHnHuh; h;0Jjh;0JUhhm7+aJhh'IaJhh;aJhhoraJhh^+$aJhhDaJhhbgkaJ hbgkCJhhbgkCJaJhhm*CJaJ/%=>UVl|9 %f& & FQdh & FP dh & FPdhdh$a$$a$gdm*e2~2f&L+.1X2e2n2o2p2{2|2}2~2255&`#$ dh` & FQ dh # 0. 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