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Extension ends for Indonesia's textile quota

JAKARTA - The United States, Canada and the European Union, will not extend the import quota for Indonesian textiles and garments after the termination of the system in 2005.

Foreign trade director general Sudar SA said the three markets indicated their decision at a meeting with an Indonesian lobby team seeking to extend the quota system.

With the termination of the quota system Indonesian producers will be exposed to open competition from rivals in China, India, Vietnam and other countries.

Sudar said the decision of the three countries is a challenge and at the same time an opportunity, giving all suppliers an equal opportunity to expand sales.

An Indonesian lobby team led by Industry and Trade Minister Rini M S Soewandi met with US, Canadian and European authorities seeking to extend the quota system.

Sudar, who was also included in the team, acknowledged that Indonesia will be facing greater difficulty in exporting its textiles and garments because of the more competitive products of China, India and Vietnam.

He said the government will encourage the production of textiles using higher local content in order to be more competitive.

(Asia Pulse/Antara)

Dec 2, 2003

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