Local view for "http://purl.org/linkedpolitics/eu/plenary/2005-02-23-Speech-3-219"

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"Mr President, ladies and gentlemen, I was present at the meeting with the representative of the United Nations. I would like to clarify why we have made this request. With the entry into force of the agreement and the signing of the quota system, many developing countries which have turned textile and clothing manufacturing into one of their major economic resources, will have to contend with a social and economic disaster, a drastic restructuring which will also affect economically dominant countries such as ours. More than 60 countries may be cut out of the market to make room for the giant China, whose competitiveness is not only based on low wages – they are far lower in Vietnam and Cambodia – but also on more advanced factories and a steadily improving transport network. According to some estimates, China will secure 50% of the United States’ clothing market and 29% of that of Europe, followed by India in second place. It could be argued that eliminating a complex quota system and preferential treatments would chiefly benefit the industries of developing countries. Market liberalisation, however, directly favours the largest manufacturers and not developing countries. Let me repeat that trade is one instrument, but it cannot and will not resolve the development problem, as is clear from the liberalisation of the sugar and banana sectors. Recent country reports on textile industry exports show a negative economic and social impact in these countries. It is a known fact that the producer countries are moving towards areas where labour costs are much lower, with the consequent severe exploitation of manpower and social dumping issues rather than guaranteed minimum standards. In order to stay competitive, many countries, such as the Philippines or Bangladesh, make working conditions worse by doing away with worker’s rights. The contradictions which have emerged from this work represent a challenge as to how we can, on the one hand, play our part so as not to ruin these economies while ensuring, on the other, that our countries’ economies as well can be evaluated differently. We have also asked, therefore, which instruments should be put into effect in order to prevent such contradictions from being so hard-hitting."@en1

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