European Apparel and Textile Organisation
24 rue Montoyer – B – 1000  Brussels
phone: + 32.2.285.48.81 – Fax : +32.2.230.60.54
e:mail : william.lakin@euratex.org
Web-site : www.euratex.org

Euratex President Tronconi Voices Concern at Doha Development Talks - "No deal preferable to a bad deal"

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European Apparel and Textile Organisation
24 rue Montoyer – B – 1000 Brussels - Web-site: www.euratex.org

PRESS RELEASE
Brussels 1st June 2007

EURATEX President Tronconi Voices Concern at Doha Development Talks and China 2008.

“How can this deal improve market access ?”

“When will the Commission answer us on China 2008 ?”

Speaking at the open session of the EURATEX General Assembly to an audience of representatives of the EU Commission, European Parliament, the Press and EURATEX members, Mr. Michele Tronconi, President of EURATEX, the European Apparel and Textile Organisation, expressed concern that current WTO negotiations in Geneva might not meet the high expectations and export ambitions of the EU textile and apparel industry. The General Assembly took place on Friday June 1st in Brussels.

In singling out the Doha Development Agenda for specific comment, the EURATEX President stated: “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 different coefficients envisaged within the NAMA (non-agricultural market access) negotiations, linked to the flexibilities available there to developing countries.” Mr. Tronconi noted that he had made these points very clearly in discussions with Trade Commissioner Peter Mandelson and Commission Vice-President Günther Verheugen in March and April of this year and had stated that “under the above circumstances we prefer no deal at all to a bad deal”. Since the launch of the Doha Development Agenda EURATEX has consistently sought access for European textile and apparel exporters to closed third markets through tariff reductions in the sector to levels below 15% and through the elimination of non-tariff barriers.

The EURATEX President also expressed puzzlement as to why impact assessment studies on projected changes to preferential origin rules should be clothed in mystery, and why there was a lack of information and consultation by certain services of the Commission as to the proposals which were likely to be made, when it was evident that they might have serious consequences for the industries and employees chiefly concerned. He also requested more information in respect of a study recently undertaken by the Commission in respect of the gap between import and retail prices in the EU-25 (a recent EURATEX analysis having shown that over a five year period import prices had fallen by almost 25%, whilst retail prices had remained largely static.) “A similar degree of clarity together with an early decision is also needed, he said, by the Commission in respect of textile and apparel trade with China in the year 2008, during which time, contrary to the USA, the EU market will no longer be the subject of safeguard quotas.”

EURATEX represents the textile and apparel industries of the EU-27 and of the EU’s Customs Union partner, Turkey. It also has as members the candidate countries to the EU, the industry associations of the EFTA and Mediterranean rim countries, and has now formally welcomed the Russian industry among its members.

In 2006 the EU-27 textile and apparel industry employed close to 2.6 million workers, and had a turnover of €205 billion. Exports at €39 billion grew by 8% as compared to the previous year and accounted for close to 20% of turnover.

For further information contact:
William LAKIN - Director General
Tel : +32.2.285.48.82 - Fax : +32.2.230.60.54
E-mail : william.lakin@euratex.org