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Indonesian govt's ability to save textile industry under question
Nov '11
Indonesia's textile industry has expressed doubts about the Government's ability to safeguard the domestic industry, amidst the hurdles posed by its trading partners who anticipate that their domestic industries might be hit by Indonesian imports.

According to the Ministry of Trade, presently over 12 countries have imposed antidumping duty and protective measures on Indonesian goods.

Indonesian Government has been less proactive and receptive as compared to its trade partners, mainly Turkey and Brazil, Indonesian Textile Association (API) Chairman Ade Sudrajat said.

He added that Turkey and Brazil, which respectively are hubs for the European and the American markets, have subjected Indonesian textile and garment products, which constitutes country's major export items, to antidumping duty and other protective measures.

The two countries, Mr. Ade said, have acted impulsively in imposing trade barriers on Indonesian goods, as the investigations regarding whether Indonesian products really penetrated their markets unjustly are still going on.

The protective measures that Indonesian goods are subjected to include imposition of additional import duties and taxes and a need to go through higher inspections. Such steps are normally initiated by a Government against imports of goods which are sold in import markets at a price below which these are sold in their home markets, or the import of goods whose pricing and import quantity cannot be justified under fair competition rules.

For instance, since 2006, Turkey has subjected import of 17 items, including woven fabrics, apparel and footwear from Indonesia to additional duties. However, it recently withdrew such safeguard measures in respect of some other Indonesian items like handbags and travel accessories, as their share in the Turkey's market came to be below three percent.

Fibre2fashion News Desk - India

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