A4-0224/98

Resolution on a communication from the Commission on a plan of action to increase the competitiveness of the European textile and clothing industry (COM(97)0454 - C4-0626/97)

The European Parliament,

- having regard to the communication from the Commission (COM(97)0454 - C4-0626/97),

- having regard to the Commission's report on 'the impact of the internal market on the employment of women in the textile and clothing industries' (((supplement 2/91 to 'Social Europe').)),

- having regard to the Commission's draft guidelines for employment policy in the Member States in 1998 (COM(97)0497),

- having regard to its resolution of 11 October 1990 on the possible renewal of the Multifibre Agreement or the subsequent regime after 1991 ((OJ C 284, 12.11.1990, p. 147.)),

- 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 14 November 1996 on the impact of international developments on the Community's textile and clothing sector ((OJ C 362, 12.2.1996, p. 248.)),

- having regard to the report of the Committee on Economic and Monetary Affairs and Industrial Policy and the opinions of the Committee on External Economic Relations, the Committee on Employment and Social Affairs and the Committee on Regional Policy (A4-0224/98),

A. whereas in 1996 the textile and clothing industry accounted for 4.2% of all value added and 7.6% of all jobs in manufacturing in the EU, with a turnover of more than ECU 180 bn and total imports and exports of approximately ECU 44 bn and 30 bn respectively,

B. having regard to the valuable nature of the dialogue launched by the Commission with labour and management with the aim of identifying the needs of the sector, and to the desirability of its continuation,

C. whereas the industry employs 2.25 m persons, with a high percentage of women employees, in some 120 000 undertakings; whereas between 1990 and 1996 approximately 600 000 jobs were lost in the industry (100 000 in 1996 alone); whereas a further 800 000 jobs are expected to disappear in the sector in the next few years,

D. whereas it emerges from the Commission's report on the impact of the internal market on the employment of women in the textile and clothing industries that women account for over 75% of the workforce in the sector, which means that it is the mainstay of women's employment in European industry,

E. whereas the restructuring strategies in the sector based on the closure of enterprises and the elimination of large numbers of jobs have hit women workers particularly hard, in view of the large female representation in the sector and the fact that the majority of women workers are in semi-skilled or unskilled positions,

F. whereas the Commission's guidelines for employment policy in the Member States set out four lines of action concerning the spirit of enterprise, employability, adaptability and equality of opportunity,

G. whereas the sector is based on a 'production chain' at both national and EU level, from fibre producers to machine manufacturers and textile and apparel producers to retail distributors,

H. whereas the logic of competition in the sector has tended to give priority to capital-intensive projects, to the relocation of labour-intensive activities to countries where wage costs are lower, although this logic should not lead to distortions of competition, and to the integration of such activities into a network of SMUs based on subcontracting by multinational companies or groups in the sector,

I. whereas the sector is characterised by a high level of regional competition, especially in the Union's less-favoured regions, and by a considerable economic weight in the productive structure, economic activity and social situation of certain Member States, which are therefore more vulnerable to asymmetrical economic shocks from the outside,

J. whereas the industry is under fierce competitive pressure from third countries which are making wide use of direct and indirect subsidies, and as a result of worldwide liberalisation in the sector following the entry into force of the second phase of the ATC agreement under WTO auspices,

K. whereas the Multifibre Agreement will have been phased out by 2006 and the European textile and clothing industry is operating in an increasingly global and competitive business environment,

L. whereas competition has intensified as a result of the creation of the EU internal market, the recent entry into force of trade agreements with third countries, especially the customs union with Turkey, the progressive liberalisation of trade with the eastern European countries completed on 1 January 1998 and the consequences of the pre-enlargement process,

M. whereas in recent years the 'outward processing arrangements' (OPA) have permitted the relocation of labour-intensive activities to the countries of central and eastern Europe and the MEDA countries, in line with the trends of competitiveness and specialisation, at severe social and economic cost,

1. Endorses the need to define a 'plan of action to increase the competitiveness of the European textile and clothing industry'; considers, however, that the Commission's proposal is not concrete and lacks cohesion and specific commitments, both in terms of funding and timetable for implementation;

2. Regrets the Commission's failure to include a number of the recommendations made by the social partners, especially those regarding initiatives in support of SMUs, which would boost the sector's competitive potential at Union level and would be enormously helpful for job preservation and creation;

3. Emphasises the importance of the textile and clothing industry in a great many EU regions, particularly the least developed regions (Objective 1) and the regions in industrial decline (Objective 2) where approximately 40% of the industry's entire workforce is concentrated, and draws attention to the large percentage of women in the workforce in this sector, which in some regions is as high as 75%;

4. Stresses the need to take account of the large number of atypical jobs in the sector (self-employment, temporary jobs, part-time jobs, homeworking, etc), and believes that the Commission should draw up a region-by-region study with a view to future support measures for these types of employment, which do not fit the SMU model and which account for large numbers of jobs that are essential for the health of the industry;

5. Points to the need to combat illegal employment in the clothing sector, which has reached worrying proportions in some European cities, and for action to improve the situation of home-workers in this sector;

6. Calls on the Commission to come forward shortly with a report on child labour in this sector within the EU and in third countries and on measures which could be effective in the fight against it;

7. Defends the 'production chain' option particularly at EU level, as a means of ensuring the global competitiveness of the industry, on the grounds that every link in the chain is essential for preserving a cohesive whole, including both medium-quality product lines and high value-added products;

8. Emphasises that modernisation of the textile and clothing industry in Europe must include promoting regional diversification, conversion of production capacities, training for employees and well-focused support for environment-friendly products and production methods along the whole production line;

9. Asks the Commission, therefore, to present a new plan of action which is concrete, cohesive and specific as to financial instruments and timetable, with particular emphasis on:

a) promoting innovation and the use of new technologies in the sector including inter alia information technologies and electronic commerce;

b) strengthening the interaction between all the chains of the industry from fibre producers to machine manufacturers and from textile and apparel producers to retail distributors;

c) implementing a broad programme of training specific to the textile sector, both technical and managerial, with emphasis on SMUs and on regions where there is a heavy concentration of the textile industry;

d) fostering the greening of the sector starting with immediate action to phase out the use of the most problematic materials at EU level;

10. Endorses the code of industrial conduct signed by the two sides of the industry, and hopes that the same provisions will be extended to all agreements with third countries by reason of their intrinsic social value and as a means of combating dumping ; recalls its resolutions 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.)) and 24 March 1994 on the outcome of the Uruguay Round of GATT multilateral trade negotiations ((OJ C 114, 25.4.1994, p. 25.)), and stresses the right to protection against unfair or fraudulent trade practice; requests that the anti-dumping inquiry consultation procedure be strengthened and calls for greater involvement of the European Parliament, not least in a more rigorous application of the Community interest investigation;

11. Urges the Commission to develop initiatives to promote employment in the industry, especially by strengthening aid to SMUs and integrating measures into this objective such as reducing working time and developing vocational training, with special attention to the introduction of new technologies, particularly for women employees and unskilled workers;

12. Is concerned about the consequences and the effects for the 'production chain' at EU level of the inefficient interaction between all the chains of industry, from producers to distributors, and urges the Commission to produce a specific plan to alleviate this problem;

13. Considers it essential that undertakings in the sector, especially SMUs, should have access to the fifth Community framework programme for R & D, with a view to developing new products and making full use of the new information and communication technologies and of the advantages the use of electronic commerce offers; such access should form part of a genuine action plan for the sector and should be based on the evaluation of the actions undertaken under the fourth Community framework programme for R & D;

14. Calls on the Commission to undertake closer monitoring of the OPA, on the grounds that this instrument can be used to justify 'hidden' relocations, but also to help combat the counterfeiting of products with designations of Community origin; urges the Commission to retain, as from 1 January 1998, the rule concerning raw materials of Community origin in respect of products placed on the market under the OPA;

15. Recommends that the Commission should do its utmost to bring forward the deadlines for investigation of the application of the provisional measures concerning anti-dumping procedures and goods with false trademarks, so as to ensure that the disputes can be settled within a reasonable time without endangering the survival of the enterprises concerned;

16. Considers, in view of the need for restructuring in the sector and the competitive pressures facing it, that the existing timetable for liberalisation under the ATC must be maintained; urges that the categories of 'most sensitive products' for the EU should not be included until the final phase of the ATC;

17. Is concerned at the legalisation of irregularities and the excessive number of import licence requests from third countries following on the amendment of Article 8 of Regulation (EEC) No 3030/93 on common rules for imports of certain textile products from third countries ((OJ L 275, 8.11.1993, p. 1.)); calls, in this connection, for the necessary administrative measures to be taken to ensure strict respect for the import quota provisions of the agreements with third countries;

18. Recalls that the maintenance by certain third countries of unjustified protection of access to their markets is contrary to their obligations under Article 7 of the Uruguay Round agreement on textiles and clothing; considers, in this connection, that the application of the instruments for protection against unfair practices discriminating against EU exports on those markets must be a priority if genuine access to those markets is to be promoted;

19. Stresses the need to stimulate access to third-country markets in order to boost competitiveness in the textile sector; advocates, to this end, a regulation that would include Community actions to promote SME exports and, if necessary, the coordination of national promotion campaigns;

20. Favours the creation of a database on non-tariff barriers and obstacles to market access; urges the Commission to ensure increased funding for the EXPROM programme and for promotion of the industry at international fairs, especially in relation to SMUs, and to defend the notion of reciprocity regarding the opening-up of third-country markets;

21. Stresses, once again, the need for tougher action against falsification and fraud in the preferential customs regimes applying to emerging and developing economies, above all as regards the rules for establishing the genuineness of certificates of product origin; calls on the Commission to take swift action to harmonise and simplify the documentation for preferential rules of origin;

22. Calls on the Commission to defend the specific nature of the sector in the context of Structural Fund allocations and the Community initiatives PME and ADAPT, on the basis of a sectoral approach including specific measures and policies for the industry in relation to the Community's internal policies;

23. Considers that the exceptionally high incidence of female employment in the sector and the low level of skills point up the need for special treatment, which could be applied via the future Objectives 2 and 3 of the Structural Funds; calls on the Commission and the Member State governments, accordingly, to introduce specific measures thereunder to preserve the levels of female employment (recalling the existing low levels in industry) and to improve workers' skills levels in the sector;

24. Calls on the Commission to carry out, together with the target Member States, an assessment of the execution of the RETEX programme and to take the necessary measures to ensure its proper and effective implementation;

25. Calls on the Commission to consider the financial mechanisms available to the textile and clothing industry - particularly in regions heavily dependent on the industry - in the light of the 'Agenda 2000' Commission proposal to terminate the RETEX Community initiative in 1999;

26. Recommends, in this connection, that the Commission should carry out a study of the possible consequences for the industry of the introduction of the euro, and evaluate the impact on its external competitiveness;

27. Reiterates its interest in the existence and activities of the European Textile and Clothing Observatory; insists, accordingly, that the Commission must submit proposals enabling the Observatory to continue its work, given the need for high-quality statistical and economic information to facilitate proactive policies in the sector;

28. Calls on the Commission to continue the dialogue launched with the two sides of the industry with the aim of ensuring coordination and monitoring of the measures to be adopted to improve the competitiveness of the textile and clothing industry; considers that the European Parliament should also be included in this dialogue;

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