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Opening Remarks from President Michele Tronconi
Open Session of EURATEX General Assembly -June 1st 2007

Distinguished Guests, Ladies and Gentlemen,
As President of EURATEX, please allow me to give you all a warm welcome to this open session of our Annual General Assembly. This yearly event has always been an opportunity for EURATEX and its members to meet with representatives of the European Parliament, with Commission and member-states’ officials, and also with representatives of the press, in a relaxed atmosphere, and, in many cases, it provides a small thank you for all the efforts you make throughout the year on our behalf.
I am therefore very pleased that it has proved possible for so many of you to join EURATEX and its members here today at the President Hotel. We very much value these informal contacts and we hope that you will take full advantage of the opportunity to meet our members, that you will enjoy the lunch and feel free to discuss any issues that come to your mind after the opening session itself.
We have made one change to the format of this year’s session in the sense that it will feature a panel discussion on the way forward for the EU textile and clothing industry after 2008, a date which has not been chosen by chance, as you will understand. A distinguished panel will interact on this issue, and time permitting, we will seek reactions from the floor too.
The objective here is to try to determine what we should be doing in the coming months and years to prepare for the post safeguard period, and when I say “we” I mean “we” in the broadest sense of the term. In other words, what role should be played by individual companies, their trade associations, including EURATEX, trades unions, national authorities and European Commission? This is why we have brought together this morning four panellists who have one thing in common, an in-depth knowledge of the European textile and apparel industry, but yet who approach the industry from different starting points: from within the textile industry, from within the apparel industry, from the European Commission itself and from academia.
In advance of that discussion, I would like to touch briefly upon a few issues which are part of today’s concerns. Undoubtedly, in terms of their possible impact upon our industry I would single out the Doha Development Agenda where in tariff terms we appear as Europe to be moving without thinking towards substantial tariff reductions of our own, without any real expectation of improved market access where potential overseas markets are concerned. This is because of the differential coefficients envisaged, linked to the flexibilities available to developing countries. These points have been made very clearly to Commissioners Peter Mandelson and Guenther Verheugen, and I have said to each of them that under the above circumstances we prefer no deal at all to a bad deal. I must say here however that we were encouraged by the Vice-President’s clear comment: “real cuts for real cuts.”

Similarly, where preferential origin rules are concerned, we find it difficult to understand why the impact assessment studies should be clothed in so much mystery, and why there is a lack of information from certain Directorates-General as to the proposals which are likely to be made. This is to be blunt as if the industries and the workers most closely concerned are somehow not adult enough to understand.
I might make a similar point here in relation to the study which we understand to have been undertaken in recent months in relation to the gap between import and retail prices. Why should there be any need for secrecy here? Similarly, one might suggest that the time has come for the Commission and member-states to make known what they intend to do in relation to the China situation in 2008. In spite of the differences of opinion which may well exist on this subject, even within parts of our own industry, can anyone really want the current situation of uncertainty to be continued into and beyond the holiday period which is now almost upon us?
There are too other major issues which do not relate to international trade and which are of immediate concern: within a matter of weeks we will begin to face the implications of the introduction of the new chemicals legislation, REACH, which will without doubt impose upon our companies additional costs as chemical substances become more expensive, or indeed disappear from the market, making it incumbent upon dyers and finishers in particular to reformulate their recipes, at considerable time and expense.
At the same time, where energy as such is concerned, many of us have faced massive increases in our electricity or gas bills, and EURATEX is, as a result, planning an event later this year to illustrate the nature of the problem and the solutions which might be envisaged. As I had the opportunity to indicate in April of this year to Commission Vice-President Verheugen, it would be most helpful if in all these areas innovative solutions could be found to stimulate rather than penalise compliance.
The points I have just mentioned will be decided within the next few months, one way or another, and this is why we have suggested to the panel that they look at pointers for after 2008 and what all of us should be doing to prepare for that date as of now.
But before we ask the panel’s opinion, and very much in keeping with tradition, I would like to introduce Francesco Marchi, who is well-known to many of you and who is the Director of Economic Affairs at EURATEX. Francesco will now provide us with an assessment of the European textile and apparel industry’s performance over the year 2006 and a few hints regarding developments in the year 2007.

		1st June 2007 - Opening remarks from President Michele Tronconi - Open Session of EURATEX General Assembly.
			Opening Remarks from President Michele Tronconi Open Session of EURATEX General Assembly -June 1st 2007 Distinguished Guests, Ladies and Gentlemen, As President of EURATEX, please allow me to give you all a warm welcome to this open session of our Annual General Assembly. This yearly event has always been an opportunity for EURATEX and its members to meet with representatives of the European Parliament, with Commission and member-states’ officials, and also with representatives of the press, in a relaxed atmosphere, and, in many cases, it provides a small thank you for all the efforts you make throughout the year on our behalf. I am therefore very pleased that it has proved possible for so many of you to join EURATEX and its members here today at the President Hotel. We very much value these informal contacts and we hope that you will take full advantage of the opportunity to meet our members, that you will enjoy the lunch and feel free to discuss any issues that come to your mind after the opening session itself. We have made one change to the format of this year’s session in the sense that it will feature a panel discussion on the way forward for the EU textile and clothing industry after 2008, a date which has not been chosen by chance, as you will understand. A distinguished panel will interact on this issue, and time permitting, we will seek reactions from the floor too. The objective here is to try to determine what we should be doing in the coming months and years to prepare for the post safeguard period, and when I say “we” I mean “we” in the broadest sense of the term. In other words, what role should be played by individual companies, their trade associations, including EURATEX, trades unions, national authorities and European Commission? This is why we have brought together this morning four panellists who have one thing in common, an in-depth knowledge of the European textile and apparel industry, but yet who approach the industry from different starting points: from within the textile industry, from within the apparel industry, from the European Commission itself and from academia. In advance of that discussion, I would like to touch briefly upon a few issues which are part of today’s concerns. Undoubtedly, in terms of their possible impact upon our industry I would single out the Doha Development Agenda where in tariff terms we appear as Europe to be moving without thinking towards substantial tariff reductions of our own, without any real expectation of improved market access where potential overseas markets are concerned. This is because of the differential coefficients envisaged, linked to the flexibilities available to developing countries. These points have been made very clearly to Commissioners Peter Mandelson and Guenther Verheugen, and I have said to each of them that under the above circumstances we prefer no deal at all to a bad deal. I must say here however that we were encouraged by the Vice-President’s clear comment: “real cuts for real cuts.” Similarly, where preferential origin rules are concerned, we find it difficult to understand why the impact assessment studies should be clothed in so much mystery, and why there is a lack of information from certain Directorates-General as to the proposals which are likely to be made. This is to be blunt as if the industries and the workers most closely concerned are somehow not adult enough to understand. I might make a similar point here in relation to the study which we understand to have been undertaken in recent months in relation to the gap between import and retail prices. Why should there be any need for secrecy here? Similarly, one might suggest that the time has come for the Commission and member-states to make known what they intend to do in relation to the China situation in 2008. In spite of the differences of opinion which may well exist on this subject, even within parts of our own industry, can anyone really want the current situation of uncertainty to be continued into and beyond the holiday period which is now almost upon us? There are too other major issues which do not relate to international trade and which are of immediate concern: within a matter of weeks we will begin to face the implications of the introduction of the new chemicals legislation, REACH, which will without doubt impose upon our companies additional costs as chemical substances become more expensive, or indeed disappear from the market, making it incumbent upon dyers and finishers in particular to reformulate their recipes, at considerable time and expense. At the same time, where energy as such is concerned, many of us have faced massive increases in our electricity or gas bills, and EURATEX is, as a result, planning an event later this year to illustrate the nature of the problem and the solutions which might be envisaged. As I had the opportunity to indicate in April of this year to Commission Vice-President Verheugen, it would be most helpful if in all these areas innovative solutions could be found to stimulate rather than penalise compliance. The points I have just mentioned will be decided within the next few months, one way or another, and this is why we have suggested to the panel that they look at pointers for after 2008 and what all of us should be doing to prepare for that date as of now. But before we ask the panel’s opinion, and very much in keeping with tradition, I would like to introduce Francesco Marchi, who is well-known to many of you and who is the Director of Economic Affairs at EURATEX. Francesco will now provide us with an assessment of the European textile and apparel industry’s performance over the year 2006 and a few hints regarding developments in the year 2007.