|
TEXTILES: EU PREPARES FOR WTO TEXTILES
AND CLOTHING QUOTA ELIMINATION FROM 1 JANUARY 2005
In order to implement one of the key commitments taken at
the end of the last WTO Trade Round (“Uruguay Round”) in
1994, the Commission has adopted a proposal for the
elimination of the quotas applying on imports of textile and
clothing products from WTO countries. This proposal will now
be sent to the EU Member States for its adoption so that
quotas can be removed by 1st January 2005. EU customs will
be nevertheless checking until 31 March 2005 the respect of
2004 quotas for textile products shipped to the EU before
the end of 2004. The Commission has also proposed the
introduction of an automatic import licensing system for
import of certain textile and clothing products. “The EU
will scrupulously respect its WTO obligation to eliminate
textiles and clothing quotas by 2005. But we will also
closely follow imports after that date to be able to react
in case of serious market disruption, using the means
available under the WTO rules”, stated EU Trade Commissioner
Pascal Lamy.
The European Commission's proposal for a Council Regulation
in detail:
-
Eliminate all quotas applied to the
import of textile and clothing products from WTO
countries, as of 1 January 2005. Currently the EU
applies 210 quotas for the import of textiles and
clothing products from 11 WTO countries or territories
(Argentina, China, Hong Kong, India, Indonesia,
Malaysia, Peru, Philippines, Taiwan, South Korea and
Thailand), which have been in force under bilateral
agreements concluded under the former GATT Multi-Fibre
Agreement in the 70s.
-
To ensure the respect of the
bilateral textile agreements, goods shipped before 1 st
January 2005 and subject to quotas in 2004 shall be
subject to the import regime prevailing in 2004, even if
they are presented for customs clearance after 1 st
January 2005. However, in order to avoid excessive
burdens on trade and customs, from 1 st April 2005 all
such goods will be allowed to enter the EU freely.
-
In order to follow closely imports of
the most sensitive textile and clothing products, a
monitoring system will be set up for Chinese imports.
Such scheme will be compatible with the WTO rules on
import licensing, and destined to ensure a smooth
transition to a quota-free system as from 1 January
2005.
Background
The WTO Agreement on Textile and Clothing
(ATC), which established a ten year period for the
elimination of the quotas, will expire on 31 December 2004,
and from 1 st January 2005 trade in textile and clothing
products will be subject to the general GATT rules, which
proscribe the imposition of quantitative restrictions for
imports. The Commission proposal intends to comply with this
key WTO obligation. The EU already eliminated 56 bilateral
quotas in 2002 under the 3 rd stage of integration of the
ATC.
Imports quotas will, however, be maintained vis-à-vis some
non-WTO countries unless eliminated under further
agreements, i.e. Belarus, North Korea, Serbia and Montenegro
and Vietnam. Discussions are going on with the last two
countries, which may lead to the elimination of these quotas
in a near future.
The precise impact of the elimination of
the quotas is difficult to assess, as it will depend among
other factors on the response by the EU industry. Other
relevant factors in assessing such an impact are the facts
that EU imports subject to quotas represent only 20 % of
total EU textile and clothing products, and that the
majority of these quotas are not very highly utilised and
therefore do not have a very constraining effect.
|
