Oxfam's Recommendations for January 1, 2005 Elimination of Textile and Apparel Quotas
Oxfam, an international agency, has issued a briefing paper entitled Stitched Up: How Rich-Country Protectionism in Textile and Clothing Trade Prevents Poverty Alleviation.
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In this briefing paper, Oxfam states that the January 1, 2005 end of import quotas will lead to a major restructuring of the global textile and apparel industry.
Oxfam Concerned Over Barriers to Textile and Apparel Trade
Oxfam states that although import quotas are being lifted, other protectionist barriers remain and others may be erected. Oxfam adds that the abrupt lifting of quotas has also left several countries (e.g. Bangladesh, Sri Lanka, etc.) that previously benefited from restrictions on their competitors (e.g. China and India) in considerable difficulty.
Oxfam Issues Recommendations for Countries, Brands and Retailers, Etc.
Oxfam's briefing paper, among other things, makes recommendations for so-called "northern countries", "southern governments", brands and retailers, and producers and factory managers such as (partial list):
"Northern countries" - Oxfam recommends the following:
Reduce average tariffs on textiles and clothing to the average for manufactured goods (4%) by 2010;
No unfair use of non-tariff barriers. Oxfam states that safeguards, antidumping measures, and anti-subsidy measures in the World Trade Organization (WTO) system should be reformed to make them more transparent and to prohibit their exploitation for protectionist purposes.
Until at least 2010, trade concessions should be made for developing countries that are highly apparel-dependent and vulnerable to quota phase-out, but do not receive least developed country (LDC) preferences. Oxfam states that these trade concessions should apply to those non-LDC developing countries earning more than 50% of their total export revenue from textiles and apparel.
Inclusion of textiles and apparel in the U.S.' Generalized System of Preferences (GSP) system.
Increased financial aid and restructuring assistance for all countries which will suffer losses due to quota phase-out. Oxfam states that such aid should be given by both individual "Northern" countries and multilateral agencies such as the World Bank.
Increased trade-related adjustment assistance for workers within their countries displaced by quota phase-out.
"Southern governments" - labor legislation in line with International Labor Organization (ILO) standards, adjustment monitoring and assistance for displaced workers, and a competitive industrial policy.
Brands and Retailers - adoption of responsible purchasing practices which integrate respect for labor standards at all times, and particular attention to workers' needs during Multi-fiber Agreement (MFA) transition (e.g. including compensation in Corporate Codes of Conduct).
Producers and factory managers - respect for workers' rights, adequate notice to displaced workers, etc.
Oxfam Press Release (dated 05/06/04) available at http://www.oxfam.org/eng/pr040506_trade_textiles.htm
Oxfam Briefing Paper (dated April 2004) available at http://www.oxfam.org/eng/pdfs/bp60_textiles.pdf