JEDDAH, 11 May 2004 — A two-day meeting to develop an Organization of Islamic Conference plan of action for when the World Trade Organization Agreement on Textiles and Clothing is phased out on Jan. 1, 2005, began at the Islamic Development Bank headquarters yesterday.
With the end of the agreement, the trade in the sector will come under the WTO. Nearly 26 member countries of the OIC, mainly those involved in the production and export of textiles, are attending the crucial meeting organized by the Islamic Development Bank.
Dr. Syed Jaafar Aznan, acting president of the bank, said that with the termination of the ATC, the global textiles and clothing market would change. There will no longer be a quota system and competition will be with all other countries in the framework of a free market. “The change will have a great impact on the exports and production of products by many developing countries. This impact will be of varying degrees, depending on the ability of each country to compete,” he added.
“IDB is committed to assist member countries in tackling various issues relating to the WTO,” Aznan said. “Our member countries that are to become WTO members face problems relating to accession while others have to ensure that they continue to benefit from various on-going trade negotiations. IDB has prepared several studies related to the WTO for the benefit of member countries,” he added.
Toufiq Ali, Bangladesh ambassador, permanent representative, Geneva, said that the phasing out of the quota system would change the way countries do business. He explained that textiles and clothing constitute roughly 8 percent of the global trade in goods.
Michiko Hayashi, economic affairs officer, UNCTAD’s division for International Trade in Goods, Services, and Commodities, said the termination of ATC marks one of the very important conclusions of the Uruguay Round. Developing countries made concessions in other areas such as services and intellectual property in order to get the commitment to end the quota system. “UNCTAD believes that this is a very important event in the international trading system. It will bring many new opportunities and challenges for OIC countries exporting textiles and clothing,” she said.
