At the call of the GAFTT, the Garment Association – Nepal (GAN) organized a press meet on the global alliance on the impact of quota phase out and the necessary of the WTO emergency meeting to discuss the issue on 26 July in Kathmandu. Mr. Kiran P. Saakha (GAN President), Mr. Uday Raj Pandey (Secretary General), and Mr. Narayan Bajaj (Chairman, WTO Committee/GAN) informed about the GAFTT action with regard to the latest development in clothing trade in Nepal and the international trade.

While briefing the media, Mr. Saakha said that the impact of the changing pattern of international apparel trade is going to marginalize Nepalese garment exports, posing a question mark to the survival of the industry, which employs over 50,000 people directly, and is a source of livelihood to more than 300,000 people. Moreover, the collapse of the industry will result in havoc in the country's employment and investment situation, he said.   

The press release distributed to the media read that the last step to eliminate MFA quotas, as agreed in the WTO Agreement on Textiles and Clothing (ATC), would result in the liberalized and competitive global textiles trade. However, the benefits of the quota removal are not likely to be evenly distributed among all exporting countries.

As the deadline draws nearer for the end of quotas, a large number of textile and apparel producing countries are growing increasingly concerned over the consequences of competing in a liberal textile trade. Precisely, "many countries fear the accelerating dominance of Chinese textiles and clothing on global markets. It is estimated that China stands to dominate between 70-80% of the US textile and apparel market following the expiration of quotas, according to the National Textile Association of the US", the release stated.

It further said: "Many countries have responded to this potential threat by appealing to their governments to petition for an extension of the ATC. Recently, extensive lobbying efforts were initiated by both developed and developing country textile organizations with a view to delaying the abolition of quotas in 2005,under the joint auspices of the American Manufacturing Trade Action Coalition (AMTAC), National Council of Textile Organizations (NCTO) and ITKIB Association of New York."

"The ISTANBUL DECLARATION, which was initiated by the coalition partners, calls on the WTO to hold an emergency meeting on the quota phase-out and its impact. In a letter to the WTO Director General, the supporters of the Istanbul Declaration declared that the quota removal would lead to the monopoly of the textile and clothing market by a few countries such as China to the detriment of other countries", it disclosed.

The media was informed that all together 91 textiles and apparel related association from 49 countries from Asia, America, the EU and Africa, have already supported the ISTANBUL DECLARATION as of 17 June 2004 and the GAN has formally endorsed the Istanbul Declaration on 8 June 2004 to support the Global Alliance on Fair Textile Trade.

The Mauritius has formally petitioned the WTO Director General to hold an emergency meeting to review the impact of 2004 textile/apparel quota elimination. Therefore, the GAN being a partner of the Global Alliance for Fair Textile Trade, strongly urges His Majesty's Government of Nepal to express its support for the Mauritius effort to convene an emergency meeting. The GAN also calls the governments of the major apparel markets, such USA and EU countries, to take steps necessary to ensure that their markets are not monopolized by one or two exporting countries beginning 2005. And also demands the world community to find a solution to the 2005 crisis prior to loss of millions of jobs in various countries all over the globe, including Nepal, the release mentioned.

Highlighting the purpose of the GAFTT preparatory meeting in Geneva, the media was also informed about the GAN representation by two of its Vice-Presidents to show the solidarity to the movement.

(The news about the GAN and GAFTT movement published in the English national dailies are attached.)  

Date: 26 July 2004