The Hindu : Business : Clothing forum's concern

Online edition of India's National Newspaper
Friday, Apr 09, 2004

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Business

Clothing forum's concern

By Our Special Correspondent

NEW DELHI, APRIL 8. The International Textiles and Clothing Bureau, the global forum of textiles exporting countries in the developing world, today expressed its disappointment with the European Union for deciding to extend quota restrictions in the markets of the ten countries that are joining the Union in May and for determining the quota limits for them unilaterally.

In a communique released at the end of the four-day meeting of its Council of Representatives, the Bureau said the decision was in contravention of the obligations under the Agreement on Textiles and Clothing and recalled that in a similar case in 1999, a dispute panel and the Appellate Body had rejected the legality of such extension of quotas. The meeting also lamented that the restraining countries were continuing to deny the use of carry forward quota for 2004, thus effectively reducing access in the last year of ATC, and called upon them to review their position so as to avoid disruption of long standing trade flows.

Expressing "strong expectation'' that the restraining countries would reject protectionist pressures, and fulfil their contractual obligations and thereby help strengthen confidence in multilateral trading system, the council resolved to be fully vigilant during the remainder eight months of ATC to ensure that all requirements under the agreement were fully complied with.

In this regard, it resolved to pursue the remaining matters for full and faithful implementation of the ATC through all available channels, including the process of WTO's Textiles Monitoring Body and the Council for Trade in Goods in the context of the upcoming last major review of the agreement.

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