Indonesia joins in call for extension of textile export quota.
Indonesia joined a number of other developing countries to call for
extension of quota system in the trading of textiles and garments.
Industry and Trade Minister Rini M.S. Soewandi said the government
welcomes calls by other countries like Mauritius, Bangladesh, Pakistan
and Srilanka on the World Trade Organization (WTO) to reconsider plan to
abolish quota restriction on textiles and garment imports. The United
States and the European Union have decided to comply with the WTO rule
to abolish import quota for textiles and garments in 2005. Most
developing nations including Indonesia are worried that the abolition of
the quota system will put them in open competition facing powerful
rivals especially China. Rini said many developing economies depend much
of textile and garment industry in foreign exchange income and
employment. Rini cited that textile and garment industry accounts for
65% of income of Bangladesh and the industry provides jobs for 2.5
million people in that country. She said even U.S. textile
industrialists are in favor of maintaining quota system as they feared
that the U.S. market would be flooded with cheap products from China
once the quota system is abolished.