GEORGIA’S TEXTILE INDUSTRY COULD BE DRASTICALLY CHANGED BY A FLOOD OF IMPORTS SHOULD CURRENT QUOTAS BE ELIMINATED TOO QUICKLY UNDER THE URUGUAY ROUND OF THE TRADE TALKS, SAID G.L. ROY BOWEN III, PRESIDENT OF THE GEORGIA TEXTILE MANUFACTURERS ASSOCIATION (GTMA).

AT RISK ARE THE JOBS OF SOME 165,000 EMPLOYEES IN THE TEXTILE AND APPAREL INDUSTRIES IN GEORGIA ALONE, AND MORE THAN A MILLION NATIONWIDE.

IN THE PAST SIX YEARS OF THE URUGUAY ROUND SEEKING TO LIBERALIZE WORLD TRADE, THE MAIN CONCERNS OF U.S. TEXTILE MANUFACTURERS HAVE FOCUSED ON QUOTAS AND TARIFFS. THE MULTIFIBER ARRANGEMENT (MFA), WHICH IS A REGULATORY AGREEMENT OVER WORLD TEXTILE AND APPAREL TRADE  AND SPECIFICALLY CALLS FOR QUOTAS, WAS PROPOSED AT THE LATEST TRADE TALKS IN TOKYO TO BE PHASED OUT.

AT THIS RECENT MEETING OF THE LEADERS OF THE SEVEN MOST INDUSTRIALIZED NATIONS (G7),  PROPOSALS TO REDUCE MANY OF THE TRADE AND APPAREL TARIFFS REMAINED UNRESOLVED.  A DEBATE CONTINUES CONCERNING THE LENGTH OF THE PERIOD FOR PHASING OUT MFA, WITH U.S. TEXTILE INDUSTRY LEADERS WANTING A 15-YEAR PHASE OUT PERIOD.

ACCORDING TO MR. BOWEN, FRAUDULENT DOCUMENTATION OF IMPORTS FROM CHINA HAVE NOT BEEN RIGOROUSLY PURSUED  IN THE PAST BY THE U.S. CUSTOMS SERVICE DUE TO A LOW BUDGET AND A LOW PRIORITY OF CONCERN.

CHINA, DESPITE NOT BEING A MEMBER OF THE GENERAL AGREEMENT  ON TARIFFS AND TRADE (GATT), IS THE LEADING EXPORTER TO THE U.S. OF TEXTILE GOODS.  SHOULD CHINA BE ADMITTED TO THE GATT – AND THE PROCESS FOR ADMITTANCE HAS BEGUN – OFFICIAL REPORTS ESTIMATE CHINA’S QUOTAS TO THE U.S. WOULD INCREASE BY ALMOST 400 MILLION SQUARE YARDS, PROVIDING SHARP COMPETITION TO SOUTHEAST MANUFACTURERS

FOREIGN SUBSIDY ISSUES ALSO ARE OF CONCERN TO THE U.S. TEXTILE LEADERS, ESPECIALLY THOSE RELATING TO PAKISTAN, INDIA AND OTHER DEVELOPING COUNTRIES, MR. BOWEN SAID, BECAUSE THEIR GOVERNMENTS OFTEN SUPPORT THEIR DOMESTIC INDUSTRIES, UNLIKE IN THE U.S., THROUGH OUTRIGHT GRANTS FOR EQUIPMENT, LOW OR NO-COST LOANS, AND THE PROVISION OF CHEAPER ELECTRICITY FROM STATE SUPPORTED AGENCIES.

THOUGH THE DETAILS OF THE CURRENT NEGOTIATIONS HAVE NOT BEEN REVEALED, THE CLINTON ADMINISTRATION’S KEY NEGOTIATORS ON THESE ISSUES, 

JENNIFER HILLMAN, CHIEF TEXTILE NEGOTIATOR, AND RITA D. HAYES, DEPUTY ASSISTANT SECRETARY OF COMMERCE FOR TEXTILES, APPAREL AND CONSUMER PRODUCTS, SAY THEY ARE COMMITTED TO INCREASE FUNDING FOR ENFORCEMENT OF ANTI-FRAUD LAWS AND REGULATIONS.

SHOULD THEY NOT BE SUCCESSFUL IN MANAGING THE TIME SPAN DURING WHICH QUOTAS ARE REDUCED, MR. BOWEN FORESEES AN EXTENSIVE FLOODING OF U.S. DOMESTIC MARKETS FROM CHINA, PAKISTAN AND INDIA WHICH ARE THE FOREIGN COUNTRIES MOST LIKELY TO PROFIT OFF THEIR CHEAPER LABOR AND THEIR UNFAIR INDUSTRY SUBSIDIES.

HE ALSO SAID THAT THE NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) WHICH INCLUDE SIMILAR PROPOSALS TO REDUCE TARIFFS, WOULD HAVE A DIFFERENT EFFECT ON THE U.S. CARPET AND INDUSTRIAL TEXTILE MARKET.  MEXICO AND CANADA ARE NOT STRONG COMPETITORS TO THE U.S. IN THE CARPET INDUSTRY, BUT DO COMPETE IN THE APPAREL SECTOR, ACCORDING TO MR. BOWEN.  FREE TRADE BETWEEN THE U.S. WITH MEXICO AND CANADA WOULD IMPROVE THE QUALITY OF LIFE WITH OUR NEIGHBORS AND THEIR NATIONS’ POTENTIALS TO BECOME EVEN BETTER TRADING PARTNERS.

THE GTMA , WHOSE OFFICES ARE IN ATLANTA, IS A LOBBYING AND INDUSTRY-SERVICE ASSOCIATION WHICH RECENTLY SUCCEEDED IN ACQUIRING $1 MILLION OF THE STATE’S 1993 BUDGET TO

BE SET ASIDE FOR TEXTILE RESEARCH IN THE AREAS OF ENVIRONMENTAL AND MANUFACTURING PROCESSES.  THIS AMOUNT WAS AUGMENTED BY A $4-TO-$1 RATIO OF MATCHING FEDERAL FUNDS NOW PAYING FOR RESEARCH PROJECTS AT GEORGIA TECH AND SOUTHERN TECH UNIVERSITIES.