A4-0327/96

Resolution on the Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions on the impact of international developments on the Community's textile and clothing sector (COM(95)0447 - C4-0460/95)

The European Parliament,

- having regard to the Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions on the impact of international developments on the Community's textile and clothing sector (COM(95)0447 - C4-0460/95),

- having regard to its resolution of 10 April 1992 on a Community initiative for regions heavily dependent on the textiles and clothing sector (RETEX) ((OJ C 125, 18.5.1992, p. 276.)),

- having regard to its resolution of 16 November 1993 on the GATT and the European textiles industry ((OJ C 329, 6.12.1993, p. 49.)),

- having regard to its resolution of 9 February 1994 on the introduction of a social clause in the unilateral and multilateral trading system ((OJ C 61, 28.2.1994, p. 89.)),

- having regard to its resolution of 24 March 1994 on the outcome of the Uruguay round of GATT multilateral trade negotiations ((OJ C 114, 25.4.1994, p. 25.)),

- having regard to its resolution of 24 March 1994 embodying the recommendations of the European Parliament to the Commission concerning the negotiations in the Trade Negotiations Committee of GATT on an agreement on a trade and environment work programme ((OJ C 114, 25.4.1994, p. 35.)),

- having regard to the report by the Committee on External Economic Relations and the opinion of the Committee on Economic and Monetary Affairs and Industrial Policy (A4-0327/96),

A. having regard to the difficult situation of the EU textile and clothing industry, due to its own internal problems, the globalization of the economy, differences between the environmental policies of different countries and competition from some developing countries which do not conform to fundamental ILO standards and international rules on intellectual property,

B. noting that over the last ten years the textile and clothing industry has lost 850 000 jobs, 600 000 of these during the last five years, which shows that jobs are being lost at an increasing rate,

C. whereas a large number of jobs in the textile and clothing sector are women's jobs; whereas these are particularly affected by structural change, reduction of permanent jobs in the EU and a growing low-wage sector in developing countries; whereas, therefore, there is urgent need for action to retrain women and create alternative job opportunities for them in regions which have a strong textile industry tradition,

D. whereas studies carried out for the Commission indicate that the EU textile and clothing industry in the next decade will follow the same downward trend towards marginalization, with massive job losses as in the previous decade, increased imports and gradual relocation of the clothing industry,

E. whereas large undertakings are increasingly relocating part of their textile production chain abroad, using outward processing in various countries and, particularly in free trade and free production areas, scandalously flouting social and environmental standards; whereas the development of independently monitored codes of conduct for multinational concerns will be a first step towards creating permanent jobs with decent working conditions,

F. whereas health and environmental risks are associated with every stage of production and processing; whereas an integrated environmental and industrial approach is needed, covering the whole process from the use of pesticides in cotton fields, through dyes and preservatives used in transport and processing to the avoidance of environmental damage when disposing of textiles,

G. whereas the quality-consciousness of consumers in Europe today no longer focuses solely on elegance and durability but increasingly also on the use of products which are compatible with health and environmental concerns, and whereas initiatives such as the European Clean Clothes Campaign take account of this and contribute to increased awareness among consumers of the issues facing the textile sector and to the development of environmentally and socially acceptable solutions,

H. having regard to the serious impact which the textile industry's current difficulties will have on economic activity and employment in certain regions of the Community,

I. taking into account that the textile and clothing industry is a significant link in a long chain of industrial activity in the European Union, starting from fibre production through chemicals to machine manufacturing and from information technology through software development to retail systems, all of which provide considerable employment in the European Union,

J. aware that during the last decade this sector has made an effort to adapt its production methods in order to improve its competitiveness and increase specialization in those sectors of the world market where fashion, design, quality and technological innovation are important factors,

K. whereas, despite these efforts, technological improvements have not been able to compensate for the differences in labour costs in comparison with developing countries and some emerging economies, so that, despite being the world's major exporter as well as importer of textile products, the EU has a massive trade deficit (ECU 13 500 million in 1994) with the rest of the world,

L. whereas the export capacity of the Community textile industry continues to be affected by the difficulty of gaining access to several large markets with a notable potential for growth as regards luxury products and those of medium to high quality,

M. whereas in this respect access to these markets is virtually impossible because of prohibitive customs tariffs and/or technical and administrative barriers, which not only obstruct Community exports but also make it impossible to compete in these markets,

N. whereas some third countries practise protectionist measures in order to hold on to captive markets (restrictions on the export of raw materials or double prices for raw materials) which result not only in poor distribution of world resources but also in a disproportionately large production and export capacity,

O. whereas it is vital to increase efforts to combat fraud in the textile sector; whereas in particular it is important to identify textile products imported into the Union with false declarations of origin or textile category in order to circumvent quota limits laid down in bilateral agreements,

P. whereas the use of counterfeit or irregular certificates of origin also includes the practice of illicit use of tariff concessions granted to beneficiary countries, particularly developing countries, and this has a serious economic impact on Community undertakings in the sector,

Q. whereas the gradual integration of the textile sector into the central WTO system (GATT 1994), which is to be carried out in four stages over a ten- year period, the impact of the new customs agreement with Turkey and the free trade agreements with the countries of Central and Eastern Europe and the probable changes in international competition mean that new structural adjustment measures will be indispensable for the Community industry,

R. having regard, in this connection, to the important and complex aspect of defining the products to be liberalized in the second and third phases of integration into the WTO system, in such a way as to give the Community textile industry time to restructure itself, thus minimizing the associated social costs,

S. whereas this adjustment should be based on recovery of the Community industry's competitive position, by increasing productivity (in particular through the use of the new information society technologies) in the context of a more open world market, based on transparent standards in the WTO system, which should provide better protection for European industry against unfair foreign competition and imitation,

T. whereas the Community has agreed to the gradual dismantling of the MFA on condition that trade in textile products is regulated by stronger standards and disciplines under the WTO system,

U. whereas, in this respect, Article 7 of the agreement on textile and clothing products requires members of the WTO to improve market access, to establish fair and equitable trading conditions and to avoid any discrimination in respect of imports of such products,

V. whereas some multilateral or bilateral trade agreements may have a considerable impact on production, employment and regional balance in the Community, (e.g. the OECD agreement on normal competition conditions in the shipbuilding sector, the agreement on access for finished leather to the Japanese market or the agreements with Pakistan and India on access to the textile market),

W. whereas in this respect Parliament should have genuine powers of democratic control over common trade policy, particularly over multilateral or bilateral trade agreements which may have a major economic, social or regional impact,

X. whereas special attention should be paid to this industry, in view of its importance for employment in the Union (2.3 million people) and the close interdependence which links this sector with the whole industrial and services sector,

Y. whereas the Community should support the textile industry's efforts to adapt and specialize both in the internal market and in its external relations, so that this sector may successfully confront the challenges it will shortly face from new production structures at world level and new structures in world markets,

1. Considers that the Community textile industry has a future as long as it becomes more competitive in the internal market and as long as application of the WTO system creates conditions for fair and genuine competition and enables European enterprises to gain access to markets in other parts of the world;

2. Takes the view that modernization of the textile and clothing industry in Europe should not be directed towards traditional rationalization, but should promote regional diversification, conversion of production capacities, training for employees and greater ecological acceptability of products and production methods;

3. Considers, in this connection, that the Commission communication displays a singular lack of objectivity, in particular because it does not contain a genuine, dynamic plan of action which could make a coherent contribution to preventing the decline of this important industrial sector in the Community, which still accounts for more than 2 million jobs;

4. Points out that the coherence of the EU's external trade policy in the textile and clothing sector depends on establishing and maintaining a transparent and effective strategy to ensure that autonomous measures and international agreements are applied correctly and to combat fraud in trade with third countries;

5. Points out that bilateral agreements affecting the textile sector must be in line with the requirements of the agreement on textiles and clothing in the Uruguay Round Final Act (GATT Rules and Sanctions 1994) and in particular must avoid any restriction or discrimination with regard to market access;

6. Considers that, if the action required to complete the process of restructuring the Community industry and adapting it to the new international conditions resulting from the Uruguay Round is to continue and attain its target, the agreed timetable of liberalization and integration to preserve the balance between rights and obligations derived from the Agreement must be maintained;

7. Reminds the Commission and Council that whatever decision may be taken to alter (accelerate) the timetable for integration into the WTO system, the textile sector must not be 'sacrificed' to achieve a more rapid opening of third country markets in other sectors, unless all regions of the Union were capable of absorbing the impact of liberalization in terms of production and employment, and there was an ongoing link with the real improvement to be made in access for Community enterprises to the textile products market in third countries;

8. Observes that the studies carried out for the Commission to analyse the impact of application of the Uruguay Round outcome on the textile and clothing sector do not include any analysis of the regional impact of these agreements; urges the Commission to rectify this major omission;

9. Considers that the agreement on the customs union with Turkey, the agreements on trade liberalization with the applicant countries of Eastern Europe, the association agreement with the former USSR countries and the bilateral textile agreements with India, Pakistan and China will have a decisive effect on EU imports and on the future development of the textile sector; calls on the Commission to conduct a study to evaluate the impact of these agreements on the Community industry, from a regional perspective as well, and asks to be informed annually of the results of the monitoring and control of these agreements;

10. Calls on the Commission, in the context of the current negotiations for China's membership of the WTO, to argue for minimum conditions of balance in the textile sector, in particular a guarantee of effective access to the Chinese market by means of a radical change in the current (arbitrary and discriminatory) import procedures, abandonment of the policy of double prices for raw materials and a ban on trade in textile products manufactured in prisons, pursuant to Article XX(e) of GATT;

11. Reiterates its view that the Community's position in international negotiations would be stronger if Parliament were systematically informed and consulted before multilateral or bilateral trade agreements of 'significant importance' were concluded;

12. Calls on the Commission to monitor the process of bringing the quantitative restrictions on Community exports to third countries into line with the WTO system and invites it to submit a report on this matter;

13. Calls on the Commission to carry out a study summarizing and analysing the impact of trade barriers which impede the access of Community textiles to markets in third countries which have most potential for growth in demand for textile and clothing products;

14. Considers that the fight against fraud in external trade in textile and clothing products is a fundamental priority and points out that the existence of the TAFI has made it possible to carry out monitoring visits to third countries and also enabled specialists in the sector to conduct systematic and ongoing economic data collection and analysis;

15. Considers it vital for the Union to have all the instruments required to conduct a more effective campaign against fraud and irregularities in the textile sector, with regard to prevention (information and training of the relevant services in the Member States), detection (participation by Member States in on-the-spot investigations) and the consequences of fraud (consultation with third countries in order to 'correct' the quantities imported fraudulently into the EU);

16. Supports the co-financing from the Community budget of the 'anti-fraud unit' (Line A-3532 TAFI) within the framework of cooperation between the Community and industry in the Community; in this respect, considers that the unit's future activities should also include the development of physical or technical measures to improve the effectiveness of ways of monitoring international trade in textile products;

17. Calls the attention of the Commission and the Member States to the propensity for fraud and irregularities in the preferential schemes applicable to developing countries (GSP), particularly with regard to the authenticity of certificates of origin of the products; in this respect, recalls that non-application of the methods of administrative cooperation which ensure the proper functioning of the multiannual system of generalized preferences may justify a total or partial withdrawal of the advantages under the system, pursuant to Article 9(1) of Regulation (EC) 3281/94;

18. Emphasizes that the obligation to cooperate with regard to methods of administrative cooperation and mutual assistance in the customs sector is an essential factor for the operation of the agreement on the creation of a customs union between the EU and Turkey and calls on the Turkish authorities to use all the human and technological resources available to control the problems of fraud and trade irregularities which could occur with the entry into force of the customs union;

19. Emphasizes that budget line B7-852 (access to third country markets) is an essential instrument of the Union's new 'offensive' strategy to improve access for European textile enterprises to third country markets (COM(96)0053) and in this respect supports, in the context of the 1997 budget procedure, the appropriations requested by the Commission in its preliminary draft budget;

20. Recognizes that differing environmental and social policy requirements and non-compliance with the rules on intellectual property and fundamental ILO standards are important factors in distorting competition in this sector;

21. Calls for efforts to coordinate environmental legislation to be continued, both at EU and WTO level, so as to prevent differences from becoming more acute;

22. Calls on the Commission and the EU Member States to take the necessary action to initiate a serious dialogue at the Singapore ministerial conference on the connection between respect for minimum social standards and international trade, respecting in particular the conventions adopted by the ILO;

23. Emphasizes that the social security of employees particularly affected by structural change in the textile and clothing sector (particularly unskilled women) must be just as much an integral part of industrial policy measures as consideration of the particular economic and social problems of regions largely dependent on this sector;

24. Draws the attention of the Commission and Council to the importance of research, for the European textile industry in particular, to limit massive relocation and improve the sector's competitiveness; calls for greater coordination of national research in this area;

25. Calls on the Commission to give equal if not more importance to the EU textile and clothing industry in all its deliberations and programmes, and to defend the interests of the textile industry in international negotiations, with the same vigour with which it defends other economic activities;

26. Considers that the obligation to declare substances used in the production and processing of textiles and clothing (product line declaration) should be extended and calls on the Commission to propose appropriate criteria which would meet the requirements for the protection of both consumers and the environment and would be equally binding on home-produced and imported products;

27. Calls on the Commission in this connection to draw up proposals for a European label, which would offer consumers guarantees that products bought within the EU do not contain any possibly carcinogenic dyes, problematic chlorine compounds or biocidal agents;

28. Calls on the Commission to draw up a report on any use of child labour in the textile and clothing sector in the European Union;

29. Instructs its President to forward this resolution to the Commission, the Council and the governments and parliaments of the Member States.