Many developing countries counter China on textiles at WTO Goods Council

24 Jun '05

2 min read

Several developing countries clashed with China at a meeting of the WTO Goods Council on 15 June regarding the role the WTO should play in addressing the problems of Members that have been adversely affected by the January 2005 elimination of quotas in the textiles and clothing sector.

Jordan, Morocco, Tunisia and Turkey suggested that the WTO should "deal urgently" with the problems small developing countries are facing, including lower world prices, fierce competition from China and India, and the risk of losing markets in the US and EU because of liberalisation in the sector.

The intervention was based on a paper presented - however never formally taken up - at the last Goods Council meeting, as China, India, Brazil and Hong Kong objected to its inclusion on the agenda.

The Chinese responded forcefully against the idea of continued work in the Goods Council on textiles, noting that the quota system, which expired with the Agreement on Textiles and Clothing on 1 January 2005, discriminated against China and hurt the Chinese people. The WTO's job, argued China, was to promote trade competition, not to stabilise market prices.

Indian diplomats also said that their country opposed special measures for particular industries. Turkey has said that they are preparing a new paper to present to the next Goods Council meeting on 15 July.

The International Centre for Trade and Sustainable Development (ICTSD)

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