Local view for "http://purl.org/linkedpolitics/eu/plenary/2005-01-11-Speech-2-187"
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"en.20050111.12.2-187"2
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"Honourable Members, I am responding to this question on behalf of my colleague, Mr Mandelson, who is unable to be here today as he is currently on his way to India.
The WTO Agreement on Textile and Clothing, which established a ten-year period for the elimination of the quotas, expired on 31 December 2004, and trade in textile and clothing products is henceforth subject to the general WTO rules.
Quota removal is likely to reshape the export of textile and clothing and global outsourcing trends. There may be a substitution effect among suppliers to the advantage of the countries that are able to offer a full range of products, economies of scale, competitive prices and efficient services. The impact of abolishing quotas will indeed be considerable, though it is difficult to assess at this stage. Moreover, it is likely to vary greatly depending on country conditions, the ability to achieve competitive advantages in the higher value added production segment and domestic policy responses. Sustained efforts are needed to help upgrade the skill levels of workers, improve the quality of their jobs and empower social partners at all levels to address the many challenges in the sector.
As far as Europe is concerned, this sector definitely has assets for the future. Investment, a move upmarket and world leadership in the fashion industry have made Europe the world's biggest exporter of textiles and its second biggest exporter of clothing.
The Commission believes that this entails a three-pronged response: monitor the level of imports into the EU, help the sector strengthen its competitiveness and remain a key industry in the EU, and keep a special focus on the poorest and more vulnerable developing countries. The Commission communication of 13 October 2004, entitled 'Textiles and Clothing after 2005', is a key element of this strategy. This communication was a response to the set of recommendations by the High Level Group on Textiles and Clothing, in which trade unions were represented.
On structural funding and relocation processes, the participation of the textile and clothing sector in multisectoral programmes should provide an efficient framework for supporting the sector, allow for diversification of production and ultimately serve the economic interests of the regions in question.
In addition, the Commission proposes that in all future programmes, Member States should reserve an amount of 1% of the Structural Fund’s annual contribution for the 'Convergence' objective and 3% of the Structural Fund’s annual contribution for the 'Regional competitiveness and employment' objective, to cover unforeseen local or sectoral crises linked to economic and social restructuring or to the consequences of trade opening."@en1
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