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Interview with Mr. William (Bill) LAKIN

Mr. William (Bill) LAKIN
Mr. William (Bill) LAKIN
Director General
European Apparel and Textile Organisation
European Apparel and Textile Organisation

He holds a Master of Arts degree from the University of Sheffield, England, in Modern Languages and Economics. Following a short period teaching English to students in Paris, he joined the staff of the International Wool Textile Organisation (IWTO) in 1969.

While developed countries are advocating free trade, same countries now place embargoes and restrictions on imports under the pretext of local industries being affected. What are your views on this?

It is clear that recent years have seen a further proliferation of non-tariff barriers, which, by the way, are damaging to our 40 billion Euros annual exports to the rest of the world. I am not however sure that many developed countries are preventing textile goods entering their territories from countries other than China. Moreover, I have the impression that a number of developing countries would themselves welcome a return to the quota system and the market security which it offered them.
 

European textile industry has had its highs and lows in recent times. Could you enlist the problems that beset the industry and solutions for them?

We need to achieve open markets for our exports in the Doha Round, to ensure the world-wide respect of our brands, designs and models as provided for in the TRIPs agreements, we need an internal market which will be capable of substantial growth in the years to come, and like our colleagues elsewhere in the world, we need predictability, a lower exchange rate, improved access to credit, and increased commitment from the authorities to research and development.

EURATEX has been involved deep in the vortex of issues related to textile industry and its development in Europe. Can you brief us on its history and its core activities?

EURATEX was founded in 1996 as a merger between organizations representing the textile industry, the clothing industry and a group of large vertically integrated companies. Its core activities are all designed to enhance the overall environment for the industry, to encourage manufacturing within the enlarged EU and its members around the Mediterranean rim - of which Turkey is the most important - and to ensure the respect of international agreements entered into by the EU. Its activities cover international trade, Research and Development, Intellectual Property Rights, the environment, social affairs, and the dissemination of economic and statistical data.

Currently, the European Textile industry overcame the crisis of blocking of textiles from China. What is the association's perspective about the entire episode?

It is self-evident that we felt the need for action early in the year when we saw the first effects of China's exports in numerous product categories following the end of quotas. Not only were volumes steepling, but prices were falling, in many cases to totally absurd levels. These were simply not economically justifiable. We do not therefore see the crisis as being overcome, and we will continue to act in those areas where similar situations arise, whether the exporting country should be China or any other.

Your member countries like Estonia, Latvia, Slovakia and the Czech Republic among others have tremendous potential to make it big on the textiles front. Does EURTEX have any concrete proposals to develop this sector in these countries and what are they?

"Since 2000 we have been working very closely with our colleagues in the new member-states to ensure that they were as prepared as possible for the changes which accession to the EU would bring about. Many of our EU-15 companies have invested heavily there, and many of their companies are finding profitable markets in Western Europe. It should however be borne in mind that many of these countries have a very strong and competitive textile and clothing sector in any case and that the exchanges we have had have proved, as a result, to be to mutual advantage. We continue to work with them in the areas of research and innovation, in the context too of EU-funded projects in respect of social affairs, competition policy, and the fight against counterfeiting. "

How do you envision the state of exporter countries in this scenario having made huge investments in infrastructure, technology and manpower training to meet competition effectively and survive in global markets?

I personally very much regret that a number of more vulnerable developing countries who derive a major proportion of their export revenue from textiles and clothing should be placed in a very difficult situation. This is however, and very clearly, not the result of actions or desires on the part of EURATEX and its members. We offered quota free trade to many countries in 2001 in return for wider market access - we embraced the concept of Everything But Arms for the least developed, and we have approved many of the Commission's proposals to grant preferences to those most in need.

What are the lessons learnt and contingency plans devised by EURTEX that will ensure no repeat of the September episode leading to Chinese textile 'blockade?'

I hope that you will accept that I cannot share our strategies in this context with your numerous readers. It is however the responsibility of the Commission and member-states to ensure that China stays within the limits agreed and that there is no repeat of the Summer 2005 situation.

Moving to China, how do you view its growth and future in global textile and clothing trade?

China quite evidently has the major role to play, with a skilled workforce, good entrepreneurship and an export-orientated industry. Its prices are ridiculously low by any measure. If China wishes to gain the full respect of the textile and clothing world it needs to demonstrate that it can achieve export-led growth under conditions of normal competition.

India, Pakistan, Srilanka and other South East Asian neighbors have been trying to make their mark on European textile markets. What prospects does Europe hold for these countries in the coming five years?

Objectively the prospects of the three countries you have named are relatively good, especially those of India and Pakistan, but I would warn against over optimism, if only because we face market saturation here in the EU, and the room for growth must therefore be somewhat limited. Sadly, however, you do not ask about the EU industry's prospects on the markets of the subcontinent - India in particular - where even our quality products at a reasonable price are unable to find their proper place as a result of high tariffs and an array of non-tariff barriers.

Could you explain REACH and its benefits for the European textiles and clothing sector?

REACH is the proposed new chemicals policy of the EU, currently before the Parliament and the Council. Under it, chemicals would need to be registered, evaluated and authorized. We have yet in our assessments to see any intrinsic value. What is likely to happen is that chemicals will cost more, and so will pigments, dyestuffs, solvents and lubricants. Certain key chemicals may no longer be available and this will force our operators to reformulate their recipes at very considerable expense. In addition the proposed text is extremely complex, and will prove difficult to understand and to apply by companies in many industries, particularly in our own, which is dominated, as you will be aware, by small and medium-sized enterprises.
Published on: 17/11/2005

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.