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Govt not responsive to critical situation – Textile body chief

11
Jun '09
Mr Eduardo Farah
It is said that, for any sector to flourish, it needs favourable policies to grow. Different countries come out with diverse set of policies for its textile and garment sector dependant on the perception and the status of the sector in the economy and at the same time there are other countries which have let their once upon a time flourishing textile industries to flounder for want of constructive policies.

Fibre2fashion spoke to chiefs of a few world wide textile association trade bodies to get an idea of the policy measures implemented by their respective government and expectations of the same. In the first of this series of exclusive interviews, we bring to you, our readers, comments taken from Mr Eduardo Farah, Chairman of the National Society of Industries, Peru.

The National Society of Industries, founded in 1896, is the nodal trade association for all the industrial and manufacturing sectors, including textile and apparels. We began by asking Mr Farah to rate the policies of the Peruvian government vis-à-vis other governments to which he said, “Effectively as you said many countries around the world have established different development policies to provide a thrust to the textile sector”.

He continued, “This is because textiles and garments are a strategic sector and requires massive labour force, especially in garments industry and Peru as a developing country cannot be an exception and in that order of ideas, we need new jobs constantly because each year close to 400,000 young people are looking for jobs and working in textiles would be an important mechanism to create that need of new jobs”.

He lamented by saying, “But in the actual circumstances it is more than difficult as unfortunately Peruvian government officials think that “The best development policy is the one that not exists” and of course also those wrong people think that all the commercial problems have to be solved by the market, so we think that with this wrong mentality, in the near future Peruvian textile industry faces the risk of a total collapse.”

“Due to the crisis many countries have urgently implemented policies that guaranty commerce and fair competition in their domestic markets and therefore we as a representatives of the Peruvian textile sector have requested the government for special policies with the main target of stopping job losses, but until now, there has been no response from the governments side”, he added by saying.

He explained further by saying, “Recently, China approved new subsidies to its textile sector and if until now we were terribly affected by its unfair competition, it is clear that with the new subsidies they have introduced, it would be more dangerous for our textile and garments industry, but, however, China is not the only country that creates unfair competition in our country”.

“In recent years, Indian exporters too have been the cause of damage to our textile companies. For instance, we were subject to unfair dumping of cotton yarn at the price of the raw material, so you can very well imagine that it is impossible to compete in those unfair terms and for this reason alone, an important group of Peruvian cotton yarn producers submitted a safeguards claim which we expect would be put in force in the near future”.


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