The
goal of the Alliance,
under the aegis of the Brussels Communique, is
to promote rational and fair textile trade
practices that benefit all the nations of the
world. In the textile and apparel sector
today, the benefits of textile and apparel trade
are widely distributed around the globe with
more than 50 countries enjoying substantial
trade in this sector. As the most labor
intensive manufacturing sector, this
diversification has rebounded to the benefit of
developing and least developed countries around
the world. Tens of millions of workers are
employed today producing textile and apparel
goods for export and for domestic
consumption.
These
jobs are now threatened by the sharp rise in
unfair trade practices by countries such as
China.
This increase has coincided with the approaching
end of the quota phase-out on January
1st, 2005
and is designed to enable
China
and a few other countries to gain a monopoly
share in world textile and apparel trade.
In
textile and apparel categories where quotas have
recently been removed,
China
has slashed prices by as much as 75% and quickly
gained a 60 to 95% share of the market. To
do this
China
has engaged in a massive export subsidization
campaign, using currency manipulation, direct
state subsidies, export tax rebates and the use
of non-performing loans. Average Chinese
prices for goods removed from quota control are
now 30 percent below average prices charged by
the rest of the world.
If
China
is allowed to undermine the free market system,
the consequences for the world community are
grim. Among those countries that will be most
severely impacted are Turkey, Egypt, Indonesia,
Bangladesh, the Philippines, Mexico, the nations
of Sub-Saharan Africa and the nations of Central
and South America (including Haiti).
A
Chinese take-over would shake the economic and
political stability of dozens of struggling
nations. 30 million jobs, many in the
poorest countries, should not be put at risk by
the actions of a few countries that refuse to
follow the rules. Cheating should not be
rewarded, particularly when it could play into
the hands of the enemies of global stability.
The
Alliance
argues that the WTO and individual government
should take appropiate actions in order to
defend workers around the world for as long as
these unfair trade practices are in place.
GAFTT has called upon governments to call for an
emergency WTO meeting to consider
these actions and for governments to use the
China
textile safeguard in a seemless and
comprehensive manner that recognizes the threat
which
China
posses.
To
Join the
Alliance
