A3-0286/93

Resolution on GATT and the crisis in the Community textile industry

The European Parliament,

-having regard to the conclusions of the Council meetings held in April 1989 and October 1992,

-having regard to the motions for resolutions by:

(a)Mr Seal and others on the GATT and the European textile industry (B3-0191/91),

(b)Mr Seal and others on GATT and the European textile industry (B3-0896/91),

(c)Mrs Muscardini on the expiry of the Multifibre Arrangement (B3-1066/91),

(d)Mrs Muscardini and others on efforts to protect trademarks and to combat imitation in the textile sector in the EEC(B3-1741/91),

(e)Mrs Muscardini on the crisis in the textiles industry (B3-1637/92),

(f)Mrs Muscardini on the state of the EC textile industry and future prospects (B3-0459/93),

-having regard to the report of the Committee on External Economic Relations and the opinions of the Committee on Social Affairs, Employment and the Working Environment and the Committee on Development and Cooperation (A3-0286/93),

A.recalling that the Punta del Este Declaration provided that "negotiations in the area of textile and clothing shall aim to formulate modalities that would permit the eventual integration of this sector into the GATT on the basis of strengthened GATT rules and disciplines, thereby also contributing to the objective of further liberalisation of trade",

B.reaffirming its position on the question of fair trade and liberalisation, to be achieved preferably under a reinforced GATT-framework (i.e. by strengthened rules and disciplines that guarantee the opening up of all markets on a reciprocal basis, strict multilateral agreed rules against dumping, industrial and export-subsidies, piracy of intellectual property and related rights, etc.),

C.whereas the fibre, textile, and apparel industries constitute one of the major sectors in the EC, employing almost three million workers whose jobs will be in jeopardy unless effective measures are taken to monitor and enforce trade laws,

D.noting that after 20 years under the MFA regime the restructuring process is still underway in these industries and that only creativity, innovation, improved productivity and continuing research & development in search of new fibres, products and processes in combination with lower labour costs within the EC have enabled and will continue to enable some parts of these industries to survive under increasingly competitive conditions,

E.considering that the MFAs, together with closed markets and generalized subsidies and dumping practices, were important factors in spreading the production and trade of textile and clothing all over the world resulting in a worldwide overcapacity with negative effects for all parties,

F.conscious of the fact that the transition period towards a normal GATT regime for textile and apparel under strengthened rules and disciplines should last only 10 years at the most,

G.considering that EC trading companies, retailers and industry are following a policy of internationalisation through outward processing trade (OPT), investments and sourcing in low-wage countries, thus controlling a considerable proportion of imports from developing countries,

1.Urges the Commission to persevere with its negotiations on a multilateral basis in order to obtain as soon as possible a successful GATT outcome which must, however, include a world-wide lowering of textiles and clothing tariffs, the elimination of all peak tariffs and the dismantling of non-tariff barriers in a synchronized programme in order to open up all the markets, and a multilateral agreement for the protection of intellectual property and related rights; stresses that the poorest countries should be assured special treatment and that specific attention should be given to diversification in these countries;

2.Questions whether the provisions of the Uruguay Round draft final act, dealing with a normal GATT framework for textile and clothing, can be considered as having sufficiently strengthened the rules and disciplines to ensure fair conditions of trade and to guarantee the firm commitment of all participants to the new regime; expects an assurance from the Commission that, if this is not the case, it will be corrected during the negotiations in order to forestall possible damage to the EC industry;

3.Demands that any agreement on textiles and clothing should provide for an adequate legal basis as well as a system of verification and sanctions to bring all the participating parties to abide by their commitments;

4.Demands a report from the Commission on the implementation of TAFI (the anti-fraud textile action) and an explanation of the unacceptable delays in the publishing of external trade statistics and a fully transparent account of the control and management conditions relating to Community import quotas on textile products;

5.Calls for a market-oriented attitude on the EC side towards OPT to encourage the use of EC raw materials and to keep high-skilled jobs in the Community; calls on the Commission and the Council to simplify the bureaucratic procedures for access to this regime;

6.Urges the Commission to agree only to a future fibre, textile and clothing regime that prevents fraud and unfair trade and requires relatively simple administration; it should in no way encourage inefficiency and overcapacity world-wide; combating fraud should not be used as a new instrument for protectionism;

7.Asks the Commission to tackle more seriously the problems confronting the sector in terms of restructuring, overcapacity and the social disintegration of whole regions by introducing the necessary internal measures to promote diversification;

8.Therefore asks the Commission to come up urgently with a report, to be used as a basis for debate, on implementation of the RETEX programme, in order to demonstrate to Parliament that the RETEX funds are being used to improve quality in the industry, to maintain measures to protect employment and, most importantly, to promote diversification in textile regions;

9.Looks forward to a new realistic report from the Commission dealing with the current situation in the EC textile and clothing industry, and in particular

. relating to trade and investments inside and outside the EC,

. evaluating the influence of the 4 MFAs in contributing to the worldwide spread of non-viable textile industries suffering from overcapacity,

. estimating the importance of NAFTA for this sector,

. giving directions in the event of success or failure of the Uruguay Round,

. containing proposals for dealing in future with on-going restructuring and for tackling the high unemployment (especially among women) and the social disintegration to be expected in some regions;

10.Intends to hold a debate on this important and complex subject that has several parallels with other sectors;

11.Calls on the Commission to ensure that, ahead of the next trade regime (GATT, MTO) in the multilateral context of GATT and the Community's Generalized System of Preferences, a multilateral debate is opened on environmental problems, compliance with ILO Conventions and other social issues related to trade in and production of fibres, textiles and clothing;

12.Instructs its President to forward this resolution to the Commission, the Council, the GATT Secretariat and the parliaments of the Member States.