TEXTILE/CLOTHING INDUSTRY LEADERS IN EU BAFFLED BY INDIAN STANCE ON TEXTILE/CLOTHING TRADE ISSUES

Recent statements from the Indian authorities have baffled Filiep LIBEERT, President of the European Textile and Apparel Organisation, EURATEX. Speaking at his Meulebeke (Belgium) based company, Libeltex on April 29th, Mr. Libeert said : "I find it difficult to comprehend how the Government of India has the gall to continue to press the EU and others to make further unjustified concessions in its favour, whilst continuing to keep its own borders virtually sealed from EU exports. The EU itself has every right to expect improved access to third markets, and its industry has already stated its willingness to offer more quota to achieve this objective. India however believes that it has a divine right to sell everything it can, at fair prices or otherwise, without offering the slightest access to its domestic market. The European industry cannot and will not accept such hypocrisy".

Filiep Libeert's comments follow Indian appeals to WTO to set aside a number of EU decisions in respect of anti-dumping duties, and duty free entry to the EU market for Pakistan under the drug fighting regime of the General System of preferences. Whilst the EU imported from India 4.2 Billion Euros of textiles and clothing in the year 2001, the EU only exported to India one twentieth of that amount. A recent WTO study 1 confirmed that India has the highest duties in the world (average bound duties for textiles and clothing 87,8%, and although its applied tariffs are somewhat lower the overall applied duties plus additional taxes on imports into India of wool fabrics, for example, still amount to in excess of 73%) demonstrating the massive gap which India will be expected to make good within the context of the Doha Development Agenda.