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Textile sector clamours for safeguard measures
Aug '09
The government of Indonesia is contemplating setting up of safeguard measures in order to protect domestic industries from the impact of the Free Trade Agreements (FTA's) signed between the countries of the ASEAN and China and the one also signed with India.

Domestic manufacturers are demanding setting up of safeguard measures, particularly from the textiles sector which expects an influx of cheaply priced textiles and apparels from China and India, after the FTA with each of the countries comes in to effect.

Ansari Bukhari, Director General for metal, machinery, textile and miscellaneous industries in the Industry Ministry, said that, “There will be an issue, when protection in the form of tariffs will no longer be effective, whether because of an FTA involving ASEAN or otherwise”.

He said, “Safeguards could be imposed if there was evidence that a surge in imports of particular goods had led to loss of business for a domestic manufacturer and in such a case an investigation and time for the safeguard to take effect should now take no more than three months”.

The biggest concern has been raised by the textile sector which expects imports of textile products to double from the current US $900 to $1.8 billion in the next few years. The domestic market for textile goods currently stands at $7 billion.

Fibre2fashion News Desk - India

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