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| Thursday, 25 November 2004 |
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End of textile quota system spells danger for developing states - ICFTU BRUSSELS, Wednesday (AFP) - Tens of millions of people worldwide face dramatic changes when the international quota system for textiles and clothing comes to an end on January 1, 2005, the International Confederation of Free Trade Unions (ICFTU) warned Tuesday. Phasing out quotas could lead to "unfair competition from China" and has already led to "a situation that is creating near-panic in dozens of countries across the globe", the ICFTU said in a statement. In a report to be released Wednesday, the group examined the social consequences of a move that would affect roughly 40 million people employed in the sector worldwide, and particularly in developing countries. "The phasing out of the quota system is predicted to lead to the loss of millions of jobs in countries which are already some of the poorest in the world," the ICFTU said. In place since the 1970s, the quota system has obliged major international brands to spread orders over a large number of countries such as Bangladesh, Cambodia, the Dominican Republic, Guatemala, Mauritius and the Philippines. "The lifting of export ceilings will undoubtedly benefit China, which has become highly competitive thanks to its cheap labour, capable of being mercilessly exploited because of the total lack of trade union rights," the group said. It quoted a World Bank forecast, saying that "China will account for half of the world's clothing exports by 2010," compared with around 25 percent at present. As a result, "the government of the Philippines said that its law on the minimum wage would no longer apply to the clothing industry. "The Bangladeshi government recently announced that it would increase the number of authorised overtime hours and loosen the restrictions on women's night work in order to prepare for 2005." The ICFTU called on suppliers, sourcing companies, distributors, governments and international bodies "to urgently develop an integrated policy to prevent this drastic loss of millions of jobs in the textile industry". It claims to represent 148 million workers in 152 countries and territories. |
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