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Textile sector seeks postponement of FTA with China
Jul '09
There is likelihood of a delay in implementation of the Free Trade Agreement (FTA) between ASEAN countries and China, due to a pressure from textile and garment manufacturers in Indonesia.

The Ministry of Trade and Industry has agreed to reassess the implications of the FTA with China under pressure from the sector and may propose a postponement of the FTA agreement in the ASEAN forum.

According to experts from the textile sector, the agreement which is to be implemented from next January will increase the pressure multifold, the onslaught which, Indonesian producers will face from influx of Chinese goods.

These manufacturers are already facing stress due to legal and illegal imports of Chinese textiles and footwear and say that the domestic textile industry is still not ready to face the consequences of the FTA with China.

The Industry Ministry on its part has understood the reality of the situation and had agreed to undertake a study in concurrence with other ASEAN countries to understand the impact of the FTA on textile sector.

The other signatory ASEAN countries are Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand, Burma, Cambodia, Laos and Vietnam

Fibre2fashion News Desk - India

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