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G20 countries put restrictions on textile trade
May '11
The Governments of G20 countries have brought in new restrictions on trade in textiles, apparel, and cotton during October 2010-April 2011. This was stated by the heads of three international agencies in their reports submitted to the G20 leaders.

Pascal Lamy, Director-General of the World Trade Organization (WTO), Angel Gurria, Secretary-General of Organization for Economic Cooperation and Development (OECD), and Supachai Panitchpakdi, Secretary-General of the UN Conference on Trade and Development (UNCTAD), warned in their reports that the restraint shown by G20 countries in resisting protectionism seems to be coming under increasing pressure.

According to them, the G20 countries have put 122 new restrictions from mid-October 2010 to mid-April 2011. These include tariff hikes, anti-dumping investigations, and constraints placed on licensing and export, which indicate that protectionism is gaining momentum in the post-global crisis period.

The new import restrictive measures adopted by the G20 countries cover nearly US$ 56.5 billion or 0.6 percent of the total imports of these countries, according to the WTO.

During the six month period, Argentina has re-introduced import ban on used garments, and included textiles and apparel in the list of items that are subject to non-automatic import licensing.

Turkey has imposed a safeguard investigation on imports of textiles and apparel, while Russia has doubled import tariffs on woven fabrics to ten percent.

India has ended the export ban on cotton yarn and issued a new notification which makes it mandatory to get exports of cotton yarn registered with the Directorate General of Foreign Trade.

Editorial note –
Protectionism in any form is harmful for global trade, because it creates a barrier to free movement of goods. These top officials have rightly pointed out the increase in protectionist measures undertaken by various countries.

Fibre2fashion News Desk - India

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