Textiles liberalization brings few advantages for Asia and big problems for Africa
ILO research reveals a rise in exports for India and China as well as other Asian states. Serious losses have been registered for African countries, and firms from Europe and the United States face a similar plight.
Geneva (AsiaNews/Agencies) China and India have gained from the removal of export quotas in the textile market, likewise Bangladesh and some other Asian countries. However, jobs have been lost in the United States and Europe and Africa faces the worst consequences of all, according to a report by the International Labour Organisation (ILO), released recently in Geneva.
The ceiling on exports of textile products was removed in January 2005. The sector employs more than 40 million people worldwide with a turnover of around 350 billion US dollars.
The report, entitled "Promoting Fair Globalization in Textiles and Clothing in a Post-Multi Fibre Agreement Environment" reveals that India and China have registered the highest increase in exports to richer countries. Their exports declined in the first three months of 2005, a sign of the efficacy sanctions imposed by the United States and the European Union against China.
China in particular, showed an evolution towards a system of "labour-intensive manufacturing industries" on the way to "higher value-added industries".
Other Asian states have felt the impact of competition posed by the two giants. Bangladesh where the textile sector represents more than 76% of exports saw a drop in exports of 57 million dollars in January, followed by an increase of 157 million dollars in February and further growth registered in March. Even Pakistan, Indonesia, and Sri Lanka saw a rise in exportation. A 40% increase was registered for Cambodia, but for goods of low value.
Other states, like the Philippines and Malaysia, experienced a fall in exports. Vietnam faces stagnation; the country does not yet belong to the World Trade Organisation and is subject in part to the system of quotas.
African states have suffered a drastic decline. In recent years, they had been favoured by fiscal exemptions applied to their products by the United States through the Africa Growth and Opportunity Act (AGOA) and by massive investments by Asian countries (like China, to circumvent the limits posed by export quotas). In the first three months of 2005, exports to the United States dropped by 25% compared to the previous year, at around the same time as Chinese exports rose by 19%.
In Kenya, 6,000 out of 39,000 jobs have been lost since October 2004. In Lesotho, 10% of 5,000 employees were fired, and another 10,000 workers are expected to be hired and paid only when work is available. In Madagascar, 5,000 out of 85,000 jobs have been lost and it is feared that 20,000 will be axed before the year is out. Morocco too will face job losses of between 10 to 25% in the sector if the current situation continues to prevail.
Aiming to circumvent the imposition of quotas, China is assessing collaboration with industries in Bangladesh, Morocco and Tunisia.
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