The Rt. Hon. Baroness Symons of Vernham DeanUK Textiles and Clothing in the Doha Development Trade Round |
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Trade in textiles and clothing trade has consistently been a prominent feature of international trade negotiations. For many developing countries the textiles sector is second only to agriculture in terms of its importance for employment and export earnings. For developed countries, like the UK, whilst often seen as a traditional industry, it remains an important and dynamic sector of the economy. The figures speak for themselves. In the UK, the textiles and clothing sector….
And of course clothing and interior textiles are an essential item of consumer spending. But today the UK industry is also developing a wide range of specialised and innovative Technical Textiles. We have entered an important stage of the World Trade Organisation negotiations. We have less than a year to go until the next round of Ministerial trade talks in Cancun (Mexico) in September 2003. I hope that this afternoon we will be able to discuss your priorities and concerns for the new trade round. We have brought together a broad range of interest groups. From industry we have manufacturers; exporters; global investors; and retailers. Equally as important, representatives from trade unions and development NGOs have been invited to be here to give their perspective on the new trade round. The Government's commitment to the UK textile and clothing sector is clear. We want to do what we can:
I would also like to thank the members of the Textile and Clothing Strategy Group (TCSG) and in particular James [McAdam – Chairman of TCSG] for their continued work. The Government wants to see to the elimination of textiles and clothing quotas and full implementation of the Uruguay Round Agreement on Textiles and Clothing. As the industry completes its adjustment to the this phasing out, and removal, of all import quotas on textiles and clothing trade by 1 January 2005, the Textile and Clothing Strategy Group (TCSG) will continue to have an important role in examining the major issues which affect the UK textiles and clothing industry. The two reports which the TCSG have published:
have been instrumental in assessing the challenges ahead. Tackling issues such as: supply chain relationsmanagement;: technological innovation; training and skills;human resources; product development; trade and export; marketing and design; investment; and e-commerce.and technological development. My Department has made a commitment to spending £1.5m (over three years) to support the Industry Forum programme. Aimed at making UK textiles and clothing supply chains "faster, better and more cost effective." We have agreed derogation in support of textiles and clothing companies attending overseas trade fairs. We are working closely with both the Department for Education and Skills and industry to develop a successor to the STAT (Strategic Training for Apparels and Textiles) which we hope to launch in the new year. These are just three initiatives – which are Government funded, but industry driven and which form part of an overall package of ongoing support designed to help UK textile and clothing companies raise competitiveness and increase productivity. These are good examples of how government works in partnership with all our stakeholders. Building and maintaining healthy relationships. Today we will be seeking your views on textiles and clothing and the Trade Round. We would lilke you to draw on your expertise and experiences. To listen to and discuss your views on the Doha Development Agenda and how it will affect the industry. I do not want to go into detail about what Doha achieved. You will all be aware of the WTO agreement and will have done your own analysis. I hope that you will also have seen the paper 'The Doha Development Agenda – The Road to Cancun'. This sets out our thinking. There are three particular messages that I want to emphasise. First – Leadership. Leadership was vital at Doha and is vital in the wider context of trade liberalisation. Trade can make a real difference to the world in which we all live. The World Bank estimates that the continued opening of markets to trade could lift an additional 300 million people out of poverty by 2015. If we could halve protection on all goods and services worldwide we could increase business opportunities for UK industry, including for the UK textiles and clothing industry in priority markets such as the US and India. And bring a net benefit to developing countries of US$150 billion per annum – or three times what they receive in development aid. For me, leadership in the context of the Doha Development Agenda means the ability to deliver on our promises to developing countries and as well as secure UK economic and commercial interests. To ensure that with our EU partners we negotiate carefully to achieve consensus amongst all 144 WTO members – reaching agreement with our partners from developed and developing countries – to ensure that this Round is a success. To motivate and encourage developing countries to enter fully into the mainstream of world trade by building their capacity to participate in the WTO. And to make the right decisions which could lift that additional 300 million people out of poverty by 2015. Second – Restructuring There will be some tough decisions and late night negotiations ahead. But governments must be prepared to take tough decisions. To learn from the past. And avoid retreating behind barricades. Europe cannot be an exception. The British government is clear in its mind that Europe must be prepared to deliver where it really counts. We must reform the common agricultural policy as part of the Doha negotiations. If we are to honour the commitments we gave at Doha we cannot continue with a system of subsidies that gives $2 a day to every cow in Europe … but leaves one thousand, two hundred million men, women and children around the world living on half that amount. The Prime Minister has made perfectly clear his commitment to CAP reform in the context of the Doha Development Agenda. And the Brussels Summit last month re-affirmed the importance of the international commitments which the EU undertook at Doha. Elsewhere, we see huge potential benefit in the liberalisation of trade in services. In the UK, for example, the liberalisation and restructuring of the telecommunications industry has led to increased competition, giving consumers greater choice and lower prices. All countries – developed and developing – stand to benefit from improvements in their services sector. In some cases these improvements will come from liberalisation – doing away with barriers that hinder growth and trade. Over the last 20 years many industries – including textiles and clothing - have seen a massive reduction in jobs in the UK. Much of this pain has been the result of opening up to foreign competition and cheaper imports. However, there have been many success stories – including in textiles and clothing. Those companies that have invested and become more innovative have moved up the value chain and remained competitive. And third – realism. I want to make clear that at the end of the day, no one will get everything they hoped for. But all countries taking part in these negotiations should get something. We will never conclude an agreement if they do not. Nor will we get the support of many of you in the room, if you do not feel that your views are being heard, understood and taken into account our negotiating position. But we have to be realistic. The politics of this current round of WTO negotiations mean that we cannot pursue each area of negotiations with tunnel vision. The business world and civil society, as much as Government, needs to be aware of sensitivities. Sensitivities around how the EU's position on agricultural reform or opening markets such as textiles and clothing affects our efforts to open up industrial markets overseas. Internationally, with our EU partners and through the World Trade Organisation, we need to ensure that the free trade agenda provides prosperity and increased opportunity for all. The advantages are clear. Opening up domestic markets and improved access to economies overseas provides increased employment, greater choice; competitive prices; and better value for consumers. To achieve these goals it is essential that we all continue to work together towards a successful outcome at the fifth WTO Ministerial Conference in Cancun (Mexico) next September. |
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Other speeches by The Rt. Hon. Baroness Symons of Vernham Dean
(the following are available from the archive) |
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