COMMUNICATION DE LA COMMISSION AU CONSEIL, AU PARLEMENT EUROPÉEN, AU COMITÉ ÉCONOMIQUE ET SOCIAL EUROPEEN ET AU COMITÉ DES RÉGIONS L'avenir du textile et de l'habillement après 2005 - Recommandations du Groupe « Textile et habillement » de haut niveau {SEC(2004) 1240}

TABLE DES MATIÈRES

1. Introduction

2. Situation économique du secteur UE du textile et de l'habillement

3. Recommandations du Groupe «textile et habillement »de haut niveau

3.1. Recherche et innovation

3.2. Éducation, formation et emploi

3.3. Autres questions liées à la compétitivité

3.4. Aspects régionaux

3.5. Questions de politique commerciale

4. Conclusions

1. Introduction

Le 29 octobre 2003, la Commission a adopté la Communication intitulée « l'avenir du secteur du textile et de l'habillement dans l'Union européenne élargie » [1], qui représente une application sectorielle des politiques industrielle et commerciale de l'UE, et tient compte des caractéristiques particulières de ce secteur. Étant donné les défis auxquels ce secteur est actuellement confronté et continuera de l' être dans les années à venir, la Commission a procédé à une évaluation de ses politiques et instruments afin d'identifier les mesures ou les actions qui pourraient améliorer la position concurrentielle du secteur.

[1] COM(2003) 649 final du 29.10.2003

Le 27 novembre 2003, le Conseil « Compétitivité » a approuvé la communication et souligné l'importance d'assurer une interaction effective des politiques au niveau de l'UE. Dans ses conclusions, la communication insiste sur l'importance stratégique, pour le secteur, d'améliorer la compétitivité, notamment par le biais de la recherche, de l'innovation, des mesures de formation et de protection des droits de propriété intellectuelle. Elle note également le rôle essentiel d'un meilleur accès aux marchés et l'entrée en vigueur de la zone de libre-échange euro-méditerranéenne. Le Conseil a approuvé l'intention de la Commission de créer un Groupe de haut niveau pour l'industrie du textile et de l'habillement.

Dans sa résolution du 21 janvier 2004, le Parlement européen a invité la Commission à établir un calendrier et un cadre financier précis permettant une mise en oeuvre rapide des idées développées dans la communication. Il demande, entre autres, un programme européen pour le secteur du textile et de l'habillement convenablement financé - notamment dans les régions dépendant en particulier du secteur - qui prévoit une aide destinée à la recherche, à l'innovation, à la formation professionnelle et aux PME, qui accélère la suppression des obstacles non tarifaires aux échanges et la création de la zone de libre-échange pan-euro-méditerranéenne et qui instaure un contrôle rigoureux des importations chinoises dans l'UE.

Pour assurer le suivi des propositions faites dans sa communication, la Commission a créé, au début de l'année 2004, un Groupe de haut niveau pour le textile et l'habillement ayant pour mission de formuler des recommandations sur une série intégrée d'initiatives concrètes qui pourraient être entreprises au niveau régional, national, et de l'UE afin de faciliter l'adaptation du secteur aux défis majeurs et de suggérer des actions en vue d'améliorer sa compétitivité.

Le Groupe de haut niveau se compose des principaux décideurs UE dans le secteur. Il comprend des commissaires, des représentants des gouvernements de 4 États membres dont l'industrie du textile et de l'habillement est importante, un membre du Parlement européen, des industriels, des détaillants et des importateurs, des organisations professionnelles européennes, des syndicats et des représentants d'associations locales d'industriels du secteur textile et habillement. Le Groupe de haut niveau s'est réuni trois fois durant le premier semestre de 2004.

Au niveau des « sherpas », des groupes de travail ont été créés pour s'occuper des questions commerciales, des droits de propriété intellectuelle (DPI), de la recherche et de l'innovation, de l'éducation, de la formation et de l'emploi, des questions régionales et de la concurrence. Plus de 20 réunions ont eu lieu à ce niveau afin d'élaborer des recommandations en faveur d'actions à entreprendre.

Étant donné le peu de temps imparti pour ce premier exercice du Groupe de haut niveau, de nombreuses questions - mais pas toutes - soulevées par la Communication ont été abordées au cours de discussions. Se basant sur les conclusions des groupes de travail, le Groupe de haut niveau a présenté ses premières recommandations sous la forme d'un rapport intitulé « The Challenge of 2005 - European textiles and clothing in a quota free environment » (le défi de 2005 - Textile et habillement européens dans un environnement non contingenté ) du 30 Juin 2004 [2].

[2] Le texte complet du rapport du Groupe « Textile et Habillement » de haut niveau est disponible sur le site : http://europa.eu.int/comm/enterprise/textile/documents/hlg_report_30_06_04.pdf

Le Conseil « Compétitivité » du 27 novembre 2003 a également invité la Commission à faire un rapport sur les progrès réalisés d'ici à juillet 2004. Cette Communication a pour objectif de répondre à cette demande, de présenter une synthèse du suivi de la Communication d'octobre 2003 et d'attirer l'attention sur plusieurs propositions concrètes d'actions qui sont décrites de manière plus détaillée dans le document de travail ci-joint de la Commission sur les recommandations du Groupe « Textile et Habillement » de haut niveau [3].

[3] SEC(2004) 1240 of 13.10.2004

2. Situation Économique du secteur UE du textile et de l'habillement

La situation économique du secteur du textile et de l'habillement dans l'UE est toujours difficile. Après des baisses sensibles de la production et de l'emploi au cours des trois dernières années, on estime qu'en 2003, la production a continué de diminuer de 4,4% et l'emploi de 7,1% (UE-25, source: Eurostat). Cela est dû à une combinaison complexe de facteurs. Premièrement, le secteur a subi le contrecoup du ralentissement économique dans l'UE et sur ses principaux marchés d'exportation. Deuxièmement, l'évolution du taux de change du dollar US et de l'euro a continué à avoir des conséquences négatives sur la compétitivité des prix de plusieurs types de produits. Et, troisièmement, le développement de la zone Euro-Med et les perspectives de nouvelles réalités économiques après 2005 à la suite de l'élimination des quotas, ont entraîné d'autres délocalisations de la production dans et à l'extérieur de l'UE-25.

3. Recommandations du Groupe « Textile et Habillement » de haut niveau

Le rapport du Groupe de haut niveau [4] confirme que la stratégie la plus appropriée pour l'avenir du secteur du textile et de l'habillement de l'UE devrait se concentrer sur les avantages concurrentiels de l'industrie européenne. Ces derniers vont de pair avec les progrès continus dans les domaines de la recherche, de l'innovation et de la formation, ainsi qu'avec la construction progressive de la zone de libre-échange pan-euro-méditerrannéenne et la création de conditions de concurrence équitable dans les questions commerciales, en particulier en ce qui concerne l'accès aux marchés et la protection effective des droits de propriété intellectuelle.

[4] voir note de bas de page 2

De plus, il convient de garantir des conditions cadres appropriées - l'accent étant mis en particulier sur les PME - afin de permettre au secteur d'exploiter pleinement son potentiel concurrentiel. Á cet égard, les difficultés que rencontrent les PME pour accéder aux crédits ont été identifiées par le Groupe de haut niveau comme l'un des domaines nécessitant une évaluation et davantage d'attention de la part des autorités publiques et des personnes concernées.

Il ressort clairement du rapport du Groupe de haut niveau que, d'une part, la Commission peut utilement prendre diverses mesures pour continuer à améliorer le cadre permettant de stimuler la compétitivité du secteur du textile et de l'habillement et, d'autre part, que la réussite du secteur dépendra également d'initiatives prises par les États membres au niveau national et régional et d'actions de la part des parties intéressées.

À chacun des niveaux d'action, plusieurs initiatives concrètes sont déjà engagées, répondant ainsi à certaines recommandations du Groupe de haut niveau. D'autres seront prises dans un futur proche, comme le propose la présente communication.

Une stratégie particulière d'approche des problèmes du secteur UE du textile et de l'habillement est toutefois proposée dans quelques recommandations. La Commission estime qu'elles ne devraient pas être suivies. Cela est, en particulier, le cas concernant la demande d'un programme communautaire sectoriel pour le textile et l'habillement et la demande d'une initiative sectorielle et régionale spécifique.

3.1. Recherche et innovation

Dans la domaine de la recherche et du développement, la Commission devrait réagir positivement à la proposition d'envisager la création d'une plateforme technologique européenne afin de rédiger et de mettre en oeuvre un calendrier de recherche stratégique, tout en soulignant la nécessité d'un engagement clair des partenaire de diriger et de mener à bien ce type d'initiative. De plus, les propositions de projets des partenaires au titre du 6ème Programme Cadre pour la recherche et le développement ont été approuvées dans le Programme NMP [5]. Cela permettra une percée technologique dans le secteur de l'industrie du vêtement et la mise au point de processus éco-efficaces, des produits à haute valeur ajoutée ainsi que des marchés offrant un potentiel de croissance pour l'industrie textile. En outre, pour compléter des projets liés au textile déjà en cours, il est prévu de lancer un appel spécifique en 2005 dans le cadre de ce Programme NMP en vue de favoriser la recherche appliquée dans le domaine des fibres multifonctionnelles, des produits basés sur les textiles et de processus associés. Le secteur aura également l'occasion de présenter des propositions d'amélioration de la gestion de la chaîne d'approvisionnement en vertu de l'objectif stratégique des technologies de la société de l'information « ICT¨pour les entreprises en réseau ». Au titre du 7ème Programme cadre, dont les détails sont encore en discussion, la Commission proposera une approche des PME davantage ascendante et axée sur les problèmes ainsi qu'un allègement des charges administratives et réglementaires là où cela est possible et approprié.

[5] Nanosciences, matériaux multifonctionnels basés sur la connaissance et nouveaux procédés et dispositifs de production

3.2. Éducation, formation et emploi

La Commission reconnaît l'importance du dialogue social considéré comme le moteur de réformes économiques et sociales réussies et elle continuera à le favoriser. Le dialogue social européen dans le secteur du textile et de l'habillement joue un rôle essentiel car il permet de relever les défis importants auxquels est confronté le secteur, comme par exemple : la valorisation des compétences et des qualifications, la modernisation de l'organisation du travail, la promotion de l'égalité des chance et le développement de politiques en faveur du vieillissement actif. Le dialogue social et les partenariats sociaux sont également un élément fondamental d'une restructuration efficace et responsable. Dans ce contexte, les négociations entre les partenaires sociaux constituent le moyen le plus adéquat de faire avancer les questions liées à la modernisation et à la gestion du changement.

En ce qui concerne l'éducation et la formation professionnelle, la Commission est d'accord avec l'analyse du Groupe de haut niveau qui constate le besoin d'une stratégie européenne de formation tout au long de la vie pour le secteur et la nécessité d'assurer une meilleure concordance entre offre et demande de formation. Au niveau européen, le Programme Leonardo da Vinci et les mesures de l' « Article 6 » du FSE fournissent le cadre de financement de projets sectoriels avec valeur ajoutée européenne et actions innovantes dans les domaines de l'emploi ainsi qu'une adaptation aux mutations industrielles.

3.3. Autres questions liées à la compétitivité

REACH

L'industrie du textile et de l'habillement est une très grande utilisatrice, en aval, de l'industrie chimique. L'impact de la nouvelle politique des substances chimiques proposées (REACH) sur ce secteur est actuellement examiné en détail par la Commission et, en coopération avec l'industrie du textile et de l'habillement, elle lance une étude d'évaluation des conséquences éventuelles de REACH pour l'industrie du textile et ses fournisseurs de produits chimiques. Les résultats de cette étude devraient être disponibles vers la mi-2005.

Droits de propriété intellectuelle

Dans le domaine des droits de propriété intellectuelle (DPI), la Commission admet qu'il est important d'améliorer la protection des droits et leur application dans les pays tiers, ainsi que de sensibiliser les détenteurs de droits aux problèmes de la contrefaçon et des risques qui en découlent. Le Groupe de haut niveau demande des actions de sensibilisation efficaces, l'information des détenteurs de droits et la fourniture d'instruments appropriés pour combattre la contrefaçon et le piratage. La Commission examinera la possibilité de créer un site Internet européen sur les DPI facile à utiliser et favorisera la diffusion d'informations par le biais de séminaires et de réunions de mise en réseau.

Marquage « Made in »

Le Groupe de haut niveau n'était pas en mesure de faire des recommandations sur le marquage d'origine étant donné les avis divergents à ce sujet. Tandis que certains membres du groupe signalaient qu'il s'agissait là d'un domaine crucial pour lequel le Groupe de haut niveau devrait recommander des actions, d'autres étaient d'avis contraire car ils considéraient que le statu quo dans ce domaine ne devrait pas être modifié. La Commission est prête à étudier la question de savoir si des initiatives à cet égard pourraient ou non améliorer la position concurrentielle de l'industrie de l'UE sur son marché intérieur.

Accès au financement

Le secteur du textile et de l'habillement est dominé par les PME qui se heurtent à des difficultés croissantes pour obtenir des crédits. En même temps, plusieurs instruments financiers ne sont pas nécessairement conçus pour le type de PME travaillant dans le secteur du textile et de l'habillement. Conformément au quatrième rapport sur la mise en oeuvre de la Charte européenne des petites entreprises [6], l'accès au financement pose toujours des problèmes importants aux entreprises dans l'ensemble de l'UE, en dépit de certains progrès réalisés dans ce domaine. L'évolution de ces dernières années montre que plusieurs mesures visant à améliorer la situation ont été prises. Les expériences faites dans le cadre d'actions du secteur public, dont l'objectif est d'améliorer l'accès des petites entreprises au financement, ont montré que les meilleurs résultats sont obtenus lorsque le secteur public travaille en étroite coopération avec les marchés financiers et encourage leur développement. La Commission participe à de nombreuses initiatives visant à améliorer l'accès au financement. Les instruments financiers communautaires permettent d'exercer un effet de levier européen et de contribuer au financement des PME. L'achèvement du plan d'action « Capital Risque » [7] constitue une réussite majeure et la mise en oeuvre du plan d'action « Services Financiers » [8] renforcera la disponibilité des prêts bancaires et des moyens de financement par des fonds propres.

[6] COM(2004) 64 final du 11.02.2004

[7] http://europa.eu.int/comm/economy_finance/publications/riskcapital_en.htm

[8] http://europa.eu.int/comm/internal_market/en/finances/actionplan/index.htm

3.4. Aspects régionaux

Le Groupe de haut niveau recommande plusieurs actions dans le domaine de la politique régionale. Tout d'abord, il préconise une participation accrue du secteur du textile et de l'habillement aux programmes régionaux nationaux des États membres et demande aux autorités régionales de mettre au point, avec des partenaires locaux, des plans stratégiques au niveau local en vue d'améliorer l'attribution de fonds publics. En même temps, le Groupe de haut niveau plaide en faveur d'un programme communautaire sectoriel pour le textile et l'habillement ainsi que d'une initiative régionale spécifique. Étant donné certaines expériences antérieures, la Commission n'estime pas que cela soit approprié et ne recommande pas ces programmes communautaires sectoriels spécifiques qui risqueraient de fragmenter les politiques industrielle et régionale de l'UE et de n'avoir que peu d'effets positifs sur le secteur dans son ensemble. Au contraire, la participation du secteur du textile et de l'habillement à des programmes plurisectoriels offre un cadre adéquat et plus efficace d'aide au secteur ; elle permet, en même temps, de diversifier la production entre divers secteurs et, en fin de compte, est plus utile à la situation économique de la/les région(s) en question.

Cependant, il existe un besoin réel d'anticiper les évolutions dans le secteur du textile et de l'habillement au cours des années à venir. Tandis que la zone euro-méditerranéenne créer les conditions nécessaires permettant au secteur d'apporter une contribution importante à la production industrielle européenne, les décideurs politiques ne peuvent ignorer le fait qu'un processus permanent de restructuration et de modernisation continuera à entraîner une baisse de l'emploi dans les années à venir. C'est pourquoi, il est nécessaire de mettre en place des programmes appropriés non seulement pour aborder la question d'une meilleure formation pour les salariés du textile et de l'habillement mais également pour atténuer les conséquences socio-économiques pour les régions dans lesquelles le secteur est concentré. Dans ce contexte, il convient de noter que la Commission a récemment adopté une proposition [9] selon laquelle les États membres devraient mettre en réserve 1% de la contribution annuelle au Fonds structurel pour l'objectif de « Convergence » et 3% de la contribution à l'objectif « Compétitivité régionale et emploi » afin de faire face à des crises locales ou sectorielles imprévues liées à la restructuration économique et sociale ou aux conséquences de la libéralisation du commerce. Tout comme d'autres secteurs se trouvant dans une situation de crises imprévues ou sectorielles, le secteur du textile et de l'habillement pourrait être couvert par cette réserve de flexibilité.

[9] Proposition de Règlement du Conseil portant dispositions générales sur le Fonds européen de développement régional, le Fonds social européen et le Fonds de Cohésion, COM(2004) 492 final du 14.07.2004

Dans les régions largement dépendantes de l'industrie du textile et de l'habillement, les défis lancés par les évolutions actuelles et prévisibles doivent être abordées de manière intégrée en vue de parvenir à des solutions durables. Tandis qu'il appartient aux autorités publiques de créer les conditions cadres adéquates pouvant attirer des investissements, promouvoir l'emploi et la compétitivité, mettre en valeur les initiatives dans le domaine de la formation et du recyclage, les acteurs locaux et autres partenaires doivent présenter des propositions concrètes appropriées pour répondre aux besoins de régions particulières.

3.5. Questions de politique commerciale

D'un point de vue stratégique, la réalisation rapide de la zone pan-euro-méditerranéenne est décisive pour le secteur du textile et de l'habillement de l'UE, car elle permettra à ce secteur de maintenir l'ensemble de la chaîne de production proche du marché européen et de combiner des avantages en matière de coûts, de qualité et de proximité. La Commission reconnaît que les progrès dans ce domaine ont été lents, en particulier la conclusion des accords de libre-échange (ALE) entre les pays concernés, et la Commission estime que d'autres efforts à cet égard doivent encore être faits par les parties intéressées.

Afin d'accélérer la mise en oeuvre du cumul pan-euro-méditerranéen, les représentants de l'industrie textile dans le Groupe de haut niveau recommandent l'interprétation souple de l'obligation de conclure des ALE à titre de mesures temporaires, à condition que les pays concernés adoptent des règles d'origine identiques, qu'une coopération administrative judicieuse soit mise en place et que le secteur du textile et de l'habillement des pays concernés soit suffisamment libéralisé. Conformément aux conclusions de la quatrième conférence euro-méditéranéenne des Ministres du commerce, la Commission examinera la proposition du Groupe de haut niveau avec les autres partenaires pan-euro-méditerranéens. La Commission n'est toutefois pas favorable à une approche sectorielle et considère qu'outre les conditions fixées par le Groupe de haut niveau, un ALE devrait au moins être mis en oeuvre et appliqué de manière provisoire.

Les recommandations du Groupe de haut niveau insistent également sur la nécessité d'améliorer l'accès aux marchés. Il s'agit d'un objectif ancien de la politique commerciale de l'UE en matière de textile et d'habillement. La Commission continuera à défendre son approche offensive en ce qui concerne les produits du textile et de l'habillement dans le cadre des négociations du Programme de Doha pour le développement, et cherchera à obtenir des conditions d'accès aux marchés de pays tiers qui sont à la fois équitables et comparables dans le monde pour les grands producteurs de textiles et de vêtements. La Commission continuera à demander aux membres de l'OMC - à l'exception des pays les moins développés - de baisser leurs tarifs douaniers au niveau commun le plus bas possible et d'éliminer les obstacles non tarifaires. Étant donné que les préférences tarifaires diminuent, des réponses alternatives aux préoccupations des pays en voie de développement qui sont fortement dépendants des exportations de textiles et de vêtements, pourraient être également mises au point comme par exemple des actions de coopération au développement en matière d'offre. Dans le cadre de négociations qui ont lieu sur une base bilatérale, la Commission continuera à exiger sur des conditions identiques pour tous les pays/toutes les régions concernées. Le 7 juillet 2004, la Commission a adopté la Communication intitulée « Pays en développement, commerce international et développement soutenable : le rôle des préférences tarifaires généralisées (SPG) de la Communauté pour la décennie 2006/2015 » [10]. Elle propose, entre autres, de concentrer les avantages des SPG sur les pays les plus démunis comme, par exemple, les PMA et les pays en développement les plus vulnérables.

[10] COM(2004) 461 final du 07.07.2004

Le secteur du textile et de l'habillement est également sérieusement préoccupé par les importations chinoises dans l'UE. Le Groupe de haut niveau demande qu'un système de contrôle des importations chinoises soit créé qui collecterait régulièrement des données sur les quantités et les prix unitaires moyens des principales catégories de produits, examinerait les conditions de production des textiles et des vêtements en Chine et évaluerait régulièrement le respect par la Chine des obligations de l'OMC, en particulier ses conditions d'accès au marché. La Commission est consciente de ces préoccupations et considère le contrôle des importations par le biais des déclarations douanières comme un autre moyen efficace pouvant être utilisé pour fournir des données sur les importations après la suppression du système des quotas. Les services de la Commission examinent les différentes possibilités dans ce domaine. La Commission a également pris l'initiative d'établir un dialogue orienté sur les résultats avec les autorités chinoises responsables auquel participent également des représentants de l'industrie et d'autres parties concernées.

Enfin, en ce qui concerne les instruments de défense commerciale, les services de la Commission envisagent de rédiger, avant la fin de 2004, des lignes directrices contenant les procédures et les critères que la Commission a l'intention de suivre, conformément aux règlements correspondants adoptés par le Conseil relatifs à l'application de clauses de sauvegarde, en particulier la clause de sauvegarde concernant les textiles figurant dans le protocole d'adhésion de la Chine à l'OMC. De plus, des mesures pratiques visant à faciliter l'utilisation du règlement « obstacles au commerce » et des instruments de défense commerciale par secteurs dans lesquels prédominent les PME, seront adoptées avant la fin de 2004.

4. Conclusions

Le Groupe « Textile et Habillement » de haut niveau a achevé avec succès la première partie de son travail, parvenant dans un délai très court à un consensus sur des recommandations dans un certain nombre de domaines d'importance stratégique pour l'avenir de l'industrie du textile et de l'habillement dans l'Union européenne élargie. Les actions prévues par la Commission pour le suivi de ces recommandations sont décrites plus en détail dans le document de travail de la Commission joint en annexe [11].

[11] SEC(2004) 1240 of 13.10.2004

Procéder aux importants changements structurels nécessaires exige évidemment, en premier lieu, des efforts et un engagement des parties intéressées, notamment des partenaires sociaux puis des autorités publiques au niveau européen, national et régional. Au niveau européen, cette communication montre qu'il est possible de tenir compte des besoins sectoriels spécifiques dans le cadre de la mise en oeuvre d'orientations politiques horizontales au niveau de l'UE. Dans l'ensemble des domaines couverts par les recommandations du Groupe de haut niveau, les actions en cours traitent déjà les objectifs prévus et d'autres actions ayant les mêmes buts sont envisagées. Dans d'autres cas, la faisabilité des initiatives proposées est à l'étude.

Il est important de noter que les actions proposées par le Groupe de haut niveau et reprises par la Commission s'inscrivent dans la stratégie décrite dans la Communication sur « l'avenir du secteur du textile et de l'habillement dans l'Union européenne élargie" [12]. La Commission demeure convaincue que des solutions durables aux défis structurels auxquels le secteur du textile et de l'habillement est confronté, doivent être trouvées par le biais du renforcement des avantages concurrentiels de l'industrie européenne et des conditions cadres appropriées.

[12] Voir note de bas de page 1.

Les actions prévues dans les domaines de la recherche, de l'éducation, de la formation et de la politique commerciale relèvent les défis en matière de compétitivité auxquels est confronté le secteur UE du textile et de l'habillement. Toutefois, les actions dans le domaine de la recherche, de l'éducation, de la formation et de l'emploi en particulier, doivent être complétées par une aide adéquate au niveau national et régional afin de favoriser les mêmes facteurs de compétitivité. À cet égard, plusieurs initiatives dans certains États membres constituent les meilleures pratiques de mise en oeuvre sectorielle d'orientations politiques horizontales car elles axent leurs stratégies sur les facteurs de compétitivité sectorielle appropriés tout en fournissant une aide par le biais d'instruments horizontaux existants.

Dans le court délai imparti, le Groupe de haut niveau a été en mesure de traiter une part importante des questions pertinentes pour la compétitivité du secteur européen du textile et de l'habillement. Certaines questions, toutefois, devraient encore être discutées, notamment l'innovation non technologique, l'accès au financement, la coopération industrielle dans l'UE et avec des partenaires non UE. Dans certains de ces domaines, la Commission proposera néanmoins des initiatives complémentaires. Par exemple, la Commission examinera la possibilité d'une coopération industrielle plus étroite avec des partenaires méditerranéens et de leur participation à des initiatives destinées à améliorer les compétences, à promouvoir l' innovation et la protection des droits de propriété intellectuelle, en vue d'exploiter à fond le potentiel du marché pan-euro-méditerranéen et d'accroître la compétitivité de l'industrie du textile et de l'habillement dans la zone euro-méditerranéenne.

De plus, les conséquences de la suppression des quotas dans le secteur après janvier 2005 devront être observées de manière plus précise. La Commission recommande donc que le Groupe de haut niveau poursuive l'exercice au niveau des « sherpas » et du groupe de travail dans les mois à venir et durant l'année 2005, le Groupe de haut niveau devant lui-même se réunir avant la fin de 2005.

COMMISSION STAFF WORKING DOCUMENT

Commission's observations in response to the recommendations of the High Level Group for textiles and clothing

{COM(2004)668 final}

TABLE OF CONTENTS

1. Executive summary

2. Introduction

2.1. Background

2.2. Work of the High Level Group for textiles and clothing

3. Follow-up to the High Level Group recommendations

3.1. Actions at EU level

3.1.1. New chemicals policy - REACH

3.1.2. Competition and retail structures

3.1.3. Access to finance

3.1.4. Education, training and employment

3.1.5. Protection of intellectual property rights

3.1.6. Regional initiatives

3.1.7. Research and innovation

3.1.8. Trade policy issues

3.1.8.1. Market access

3.1.8.2. Trade defence instruments and trade barriers regulations

3.1.8.3. China: import monitoring and dialogue

3.1.8.4. Euro-Mediterranean zone

3.1.8.5. Generalised System of Preferences

3.1.8.6. Sustainable development

3.1.8.7. TBR and anti-dumping

3.2. Actions at Member State level

3.3. Actions at Stakeholder level

4. Conclusions and next steps

ANNEX: Summary of on-going and foreseen actions by the Commission

1. Executive summary

The High Level Group for textiles and clothing presented its first recommendations in the report entitled "The Challenge of 2005 - European Textiles and Clothing in a Quota Free Environment" [13]. In view of the very short period of time available, the High Level Group was not able to discuss all issues of relevance to the competitiveness of the European textiles and clothing sector. It nevertheless presented a set of recommendations covering areas such as research and innovation, education and training, protection of intellectual property rights, competitiveness-related issues and trade and regional policies.

[13] The full text of the Report of the High Level Group for textiles and clothing is available on : http://europa.eu.int/comm/enterprise/textile/documents/hlg_report_30_06_04.pdf

The present Commission Staff Working Document addresses the recommendations put forward by the High Level Group and describes in detail a set of actions the Commission Services intend to undertake in order to improve the competitiveness of the textile and clothing industry. A summary of the actions foreseen by the Commission Services is appended to this Staff Working Document.

Several concrete initiatives, meeting some of the High Level Group's recommendations, are already completed or in progress. Other concrete initiatives will be covered in the near future, as indicated in this document. However, a few recommendations propose a specific strategy to approach the problems of the EU textiles and clothing sector. The Commission considers they should not be followed. This is particularly the case concerning the specific call for a sectoral Community programme and sectoral regional initiative for textiles and clothing.

2. Introduction

2.1. Background

Over the past decades, the European textile and clothing industry has undertaken a lengthy process of restructuring, modernisation and technological progress. Companies have substantially reduced or ceased mass production and simple fashion products, and have concentrated instead on a wider variety of products with a higher value-added.

The years 2001-2003 have been very difficult for the industry which employs 2.7 million workers in 230.000 enterprises and produces almost 4% of the total manufacturing value added. It has seen significant declines in production (-12.2%) and employment (-12.6%). The trade deficit (EU-25) amounted to EUR 29.4 billion in 2003, the trade in textiles reaching a surplus of EUR 3.7 billion and the deficit in clothing EUR 33.1 billion. The developments in production and employment are the result of a complex combination of factors, all of them contributing to varying degrees to the present situation. In the first place, the continued slow-down in the economic activity in the European Union and in its major export markets has had a negative impact, in the production both of technical and industrial textiles and of clothing. The development of the Euro-Mediterranean zone, together with preparations for the dismantling of quantitative restrictions on 1 January 2005, has resulted in the relocation of production to the benefit of countries such as Bulgaria and Romania. In addition, these developments have taken place over a period during which the euro has shown a significant upward trend against the US dollar. All in all, every segment of textiles and clothing production, from spinning and weaving to garment make-up, has in one way or the other suffered from the impact of the developments of the last few years.

In view of the challenges that the sector is facing and will continue to face in the coming years, and in particular the elimination of import quotas on 1 January 2005, the Commission adopted a Communication on the future of the textiles and clothing sector in the enlarged European Union on 29 October 2003 [14].

[14] COM(2003) 649 final of 29.10.2003

The Competitiveness Council of 27 November 2003 welcomed the Communication and stressed the importance of ensuring an effective interaction of EU-level policies, notably concerning research, innovation, ICT, vocational training and the protection of IPR. It noted the need to ensure better market access, as well as the rapid finalisation of the Pan-Euro Mediterranean free trade area, and called for more active promotion of corporate social responsibility. It also called for Member States to take appropriate action, inter alia through measures on research, education and training, and invited the Commission to report back on progress by July 2004.

In order to follow up on the ideas and suggestions contained in the Communication and to meet the request of the Competitiveness Council, the Commission set up a High-Level Group in early 2004 with a mandate to formulate recommendations on initiatives to improve conditions for the competitiveness of the European textile and clothing industry.

2.2. Work of the High Level Group for textiles and clothing

The High Level Group for textiles and clothing (HLG hereinafter) has brought together stakeholders of the textiles and clothing industry including industry, trade unions, retailers, importers and distributor chains and representatives of four Member State governments, the Commission and a Member of the European Parliament. Its main objective has been to find common views on measures that could be taken at EU, national and stakeholder levels in order to facilitate the textile and clothing industry's adjustment to current and future challenges and to improve the conditions for its competitiveness.

Members of the High Level Group agreed to concentrate their work on a series of major areas of concern covering competitiveness issues, education, training and employment, intellectual property rights, regional initiatives, research, technological development and innovation, and trade policy.

Through its debates the Group reached a consensus on an integrated set of initiatives that could be undertaken and at its plenary session on 30 June 2004 endorsed a report on recommended actions entitled "The Challenge of 2005 - European textiles and clothing in a quota free environment" [15].

[15] See footnote 1

In its report, the Group requests early actions from the Commission and Member States to implement the measures which are proposed. The Group also believes that it is essential that its work should continue after June 2004 in order to ensure the necessary follow-up to the recommendations and to complete its discussions on certain unresolved issues.

3. Follow-up to the High Level Group recommendations

3.1. Actions at EU level

3.1.1. New chemicals policy - REACH

The textile and clothing industry is a highly intensive downstream user of the chemicals industry, and chemical substances provide an important source for its innovation and international competitive advantage. The impact of the new chemicals policy (REACH) on this sector, including the risk of potential substance withdrawals, is being examined closely by the Commission Services. Initial work on the impact of REACH on the textiles industry was undertaken in the course of the elaboration of the Commission's own Extended Impact Assessment.

Recommendation of the HLG: Impact assessment study of REACH on the textiles and clothing sector involving industry stakeholders.

Action: The Commission Services, in co-operation with the textile and clothing industry, will undertake a further impact assessment study on REACH, based on detailed business case studies. They will investigate the supply chain of substances of critical importance in the context of specific downstream users and producers.

The objectives of the impact assessment study are to:

- undertake a study to collect factual evidence on the potential impacts of REACH on the textile industry and its chemical suppliers using a business case study approach;

- assess those REACH mechanisms potentially affecting SMEs in particular and identify the scope for potential supporting measures to facilitate the implementation of REACH by SMEs;

- evaluate potential impacts on the profitability and competitiveness of the textiles companies.

An analysis of chemical substances and preparations used in the textiles industry will be undertaken, in order to draw up a list of categories of substances of critical importance for the sector. The selection of sub-groups of substances and their associated supply chains for further investigation will be discussed with stakeholder experts from the textiles industry and its chemical suppliers. For each supply chain, a list of representative firms from the chemicals and textiles industries on which business case studies will be undertaken will be defined in co-operation with industry stakeholders. The companies chosen will mainly include SMEs, together with at least one larger firm, and will be located in a number of different Member States, including at least one new Member State. In addition, at least two importers of textiles of Asian origin will be added to the selection.

The main areas of the impact assessment study on the textile industry will include:

- the effects of changes in the supply of chemicals caused by REACH including both the effects of potential commercial product withdrawal and/or higher chemical prices;

- the impact on innovation in the textiles sector;

- the effects of the REACH legislation's approach to substances in articles, in particular its relevance to the textile sector, on importers of competing textiles originating from Asia, and on the European case study firms, including effects on their competitiveness;

- the overall impacts on case study textiles firms, including their profitability, employment, and investment strategy;

- the impact on SMEs throughout the supply chain, including the potential effects on their administrative, managerial, legal, and technical resources and capacities and possible supporting measures to facilitate the implementation of REACH by SMEs.

In addition to the impact assessment, the REACH Implementation Project number 3 will develop guidance documents for downstream user industries, including the textiles industry. These documents will include guidance on Downstream User requirements, Chemical Safety Reports (including the development of exposure scenarios), and the requirements for articles. The development of these documents will be undertaken by consultants, supported by Stakeholder Expert Groups involving representatives of all relevant stakeholders (including industry, member states, and NGOs).

Timing: Impact Assessment Study: Launch in October 2004, to be completed within six months. REACH Implementation Project: Autumn 2004 - 2006.

3.1.2. Competition and retail structures

The increasingly oligopolistic retail structures prevalent in the EU potentially create the risk of producing anti-competitive effects which need to be effectively addressed. It is well known that associations and companies have the right to file complaints with the competent competition authorities against practices they consider to be potentially anti-competitive. In some instances, however, SMEs in particular might be reluctant to pursue this line, for fear of retaliatory measures by stronger market participants, despite the fact that their complaints are treated confidentially. In addition to ex post enforcement, it is therefore important to monitor market developments and at an early stage to identify situations where the anti-competitive effects of business strategies might outweigh their pro-competitive gains for the sector as a whole. This applies both to the Commission and to national competition authorities, as Member States are entitled to apply tighter national rules for preventing competition problems caused by unilateral conduct than those of the Commission when it applies Article 82 of the EC Treaty.

Recommendation of the HLG: Undertake a study on the current abuses of unfair practices of retailers, and surveillance of companies whose market position creates economic dependency.

Action: The Commission Services welcome further analysis of the pro- and anti-competitive effects of retailers' business strategies in particular towards industry suppliers. Practices to be assessed could include the conduct of reverse auctions and the risk that these might turn into sham auctions, as noted by the HLG. The Commission Services will investigate, together with the public authorities of the Member States and stakeholders, whether a study should be launched to address such issues and by whom it should be conducted. The latter point is of particular importance, as national rules might be stricter in this field than Community competition law, not the least because many potentially anti-competitive practices take place at national level, a fact which needs to be duly taken into account. At the same time the Commission observes that, while it acknowledges the right of Member States to apply stricter competition rules at national level in the field of unilateral conduct as laid out in Regulation 1/2003 [16], it does not encourage Member States to increase the gap between national and Community laws.

[16] Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty, O.J. L 001 , 04.01.2003, pp 1-25

The objectives of such a study could include:

- establishing a methodology and obtaining a clear empirical picture of potential competition concerns in the sector;

- addressing adverse effects generated by unfair practices of retailers on consumers;

- raising the awareness of public authorities about existing problems where further action might be required.

As regards the question of surveillance of companies whose market position creates or might create unilateral conduct, the Commission notes that Article 82 of the EC Treaty offers sufficient safeguards to investigate practices by dominant firms should they abuse their market position. Dominance, however, is not as such prohibited. As the practical application of Article 82 is currently being reviewed by the Commission Services, stakeholders will be able to comment further on this issue at later stages of the review procedure, should the Commission decide to produce guidelines or similar documents that further clarify its approach under Article 82.

Timing: A study could be launched in 2005.

Recommendation of the HLG: - Creation of a cross-border network of associations and companies affected by potential abuse of market power, and drafting of a European Code of Conduct on competition.

Action: The Commission Services take note of this initiative by stakeholders, while observing, however, that they regard the current EU legal framework on competition as being fully able to address now and in the future potential competition problems at Community level. While the Commission Services recognise that a code of conduct on other questions, including unfair competition related to mainly national practices, could have benefits, as exemplified by national initiatives of this kind, it emphasises that any such network needs to respect itself the competition rules, notably under Articles 81 and 82 of the EC Treaty. The Commission will safeguard, if need be, the full respect of European legislation on this matter.

3.1.3. Access to finance

Besides the prevalent low level of own capital resources in the sector, European textile and clothing companies have a rather poor image when perceived by the banking sector. Banks have insufficient information concerning the sector's strengths such as innovative potential, international orientation or the development of new products and solutions (e.g. technical textiles). A large number of companies, and SMEs in particular, face difficulties in obtaining access to finance and especially to credit, and find their banks increasingly reluctant to help them. Moreover, a general lack of knowledge about existing EU and national financial instruments and how to access them persists amongst companies in the sector.

Recommendation of the HLG: Assessment of existing financial instruments for SMEs and raising the awareness of SMEs about rating criteria.

Action: The Commission Services have already undertaken a comprehensive survey entitled "Strategic Evaluation of Financial Assistance Schemes for SMEs" on the existing financial instruments that help provide access to finance for SMEs at EU level [17]. The evaluation highlighted the delivery mechanisms (via the European Investment Fund) as being a best practice which could be widely used elsewhere throughout the Commission. The results of the survey, including an overview of EU financial instruments, are available on the "Europa" website [18].

[17] carried out by Deloitte&Touche in 2003

[18] http://europa.eu.int/comm/budget/evaluation/News/news_en.htm.

In order to increase the awareness and knowledge of SMEs in all sectors about rating criteria the Commission Services will provide a guide for SMEs, advising them how to deal with banks in the context of the new rating environment resulting from the Basle II agreement. This multilingual guide will be available from the beginning of 2005 and will be widely disseminated as a printed version. It will also be published on the "Europa" website.

Timing: Survey on the existing EU financial instruments - completed, Guide for SMEs on rating criteria - early 2005.

3.1.4. Education, training and employment

After the launch of the second phase of the Leonardo da Vinci II programme 2000-2006 [19], the sectoral approach has been gradually developed. The Commission has identified two strategic priorities; "development of the European labour market" in view of the Lisbon objectives, and "transformation, modernisation and adaptation of the European Education and Training systems". The themes identified within these priorities offer funding opportunities for projects proposed by the High Level Group. For the first time, the 2005-2006 call for proposals clearly refers to the necessity of supporting the development of qualifications at sectoral level. It is foreseen that a third of the pilot projects supported will be sector oriented.

[19] http://europa.eu.int/comm/education/programmes/leonardo/new/leonardo2_en.html

With the aim of focusing on training needs and the development of qualifications at sectoral level, the Commission Services together with the Dutch Presidency organised a seminar on sector developments in vocational education and training in the Hague on 5-6 October 2004. The seminar focused on European and/or international education and training best practices and solutions developed at sector level. The textiles and clothing sector was one of the sectors invited to participate.

Recommendation of the HLG: Establish national training and employment "observatories" to organise, carry out and co-ordinate training at all levels, ensure a better match between supply and demand for training, and collect and centralise information for SMEs on training projects and funding opportunities; and to set up a European co-ordination network for these national structures and their regional offices.

Action: The ESF provides EU-level funding for programmes which develop or regenerate "employability". Programmes are planned by Member States together with the European Commission and then implemented through a wide range of provider organisations. As concerns the mainstream ESF operations, Member States are responsible for their implementation, including application and selection criteria and procedures. The ESF also supports innovative actions - known as "Article 6" measures - to assist the development of future policy and programmes by exploring new approaches to the content or organisation of employment, including vocational training, and industrial adaptation. For the period 2004-2006, Article 6 supports the development and testing of innovative measures to anticipate and manage change under the theme of "Innovative approaches to the management of change". The specific sub-theme of "management of restructuring" has the objective of supporting innovative solutions to restructuring by enhancing the capacity for adaptation and anticipation of workers, enterprises and public authorities. This could provide appropriate funding for developing projects containing elements relating to observatories. These, however, could not be considered as a prime consideration in the evaluation of the suitability of projects for financing [20].

[20] This does not pre-empt the usual evaluation process. Any project proposals submitted by the textiles and clothing sector will be judged according to their own merits and the quality of the proposal, as will those emanating from other industrial sectors. Any proposal must, of course, address the themes and priority issues of the call for proposals and be submitted in conformity with the criteria established for the call.

Timing: Article 6 of the ESF - the second round of call for proposals sets a deadline for 26.01.2005. There will also be a final call ending 25.01.2006.

Recommendation of the HLG: Implement "media/information pools" to provide teachers in general education and other players with user-friendly teaching material to make widely known the sector's innovative products and production processes, and to serve as the basis for improving the image of the sector.

Action: Suitable funding opportunities for pilot projects in this area are available under the Leonardo da Vinci programme, in particular under priority 3 of the 2005-2006 call for proposals "Developing relevant and innovative e-learning content". Projects submitted under this priority should support ICT-based learning and contribute to transforming, modernising and adapting the education and training systems in Europe to the requirements of the knowledge society and economy. Stakeholders are encouraged to present project proposals [21]. Alternatively, the e-CONTENT programme funds projects to stimulate the development and use of European digital content on the global networks. This programme will end in January 2005, and the last call for proposals has already closed. However, the Commission has proposed a follow-up in the form of e-CONTENT PLUS for 2005-2008, the programme for which is under discussion for adoption in the Parliament and the Council.

[21] See footnote 8

Timing: Project proposals for Leonardo da Vinci programme have been invited before 1 October 2004. For projects starting in 2006, the deadline for submission of proposals is 30 September 2005.

Recommendation of the HLG: Development of common European qualification standards for the textile and clothing sector, by analysing and sharing the results of existing training descriptions in terms of knowledge and qualifications acquired.

Action: Suitable funding opportunities are available under the Leonardo da Vinci programme, in particular under priority 1 of the 2005-2006 call for proposals "Promoting transparency of qualifications". Projects submitted under this priority must focus on the development of new measures and instruments to present, promote and compare qualifications and competences at European, national and sectoral level. Stakeholders are encouraged to present project proposals [22].

[22] See footnote 8

Timing: Under the Leonardo da Vinci programme 2005 the proposals for projects starting in 2005 have been invited before 1 October 2004. The deadline for submission of proposals for projects starting in 2006 is 30 September 2005.

Recommendation of the HLG: Create a pool of competence to build up a network between colleges and universities in order to set up a structure for future courses of study, develop post-university exchanges and perhaps work towards a "European degree".

Action: Stakeholder action to build up a network between educational institutes could receive financial support at EU level. The Socrates/Erasmus programme for the period 2000-2006 includes opportunities for co-funding the setting up of Thematic Networks between universities and higher education institutes, with the aims of mapping and enhancing education and facilitating European co-operation, either within a traditional discipline or in multidisciplinary fields. Building on existing networks such as AUTEX [23], relevant stakeholders in the area of textiles and clothing higher education are encouraged to present proposals for a Thematic Network [24]. In addition, in the area of vocational training, funding opportunities for a credit transfer scheme are available under the Leonardo da Vinci programme, under the theme "credit transfers in VET".

[23] http://www.autex.org/general.htm

[24] See footnote 8

Timing: For the period 2004-2006, project proposals under Socrates/Erasmus are invited before 1 November each year.

Recommendation of the HLG: Enhance and strengthen social dialogue at all levels, particularly in the new Member States.

Action: The Commission will continue to promote social dialogue at all levels, including the sectoral dimension. The sectoral social dialogue committee in the textile and clothing sectors was set up in 1999. Funding possibilities for actions undertaken by social partners to promote social dialogue exist under the budget line for industrial relations and social dialogue. Within this framework, the Commission has supported several projects by the European social partners in the sector, including a training programme together with the ILO for workers and managers in Turkey and a Socio-Economic Forum gathering social partners from both old and new Member States and Candidate Countries in Bulgaria this year.

Timing: on-going

Recommendation of the HLG: Introduction of more flexible and simpler procedures for SMEs within the European Social Fund.

Action: The Commission adopted on 14 July 2004 a proposal for five new regulations for renewed Structural Funds and instruments. The proposals have been tabled in order to create the conditions for final decisions to be taken by the Council and Parliament in 2005. The proposal for a Regulation on the European Social Fund [25] states in Article 3 that the ESF shall support action focussing among other things on increasing the adaptability of workers and enterprises, in particular by promoting increased investment in human resources by enterprises, especially SMEs.

[25] COM(2004) 493 final of 04.07.2004

Recommendation of the HLG: The Commission should take actions in the field of innovative actions of the ESF (Article 6)

Action: For the period 2004-2006, Article 6 of the ESF supports the development and testing of innovative measures to anticipate and manage change under the overarching theme "Innovative approaches to the management of change". Within this theme two specific sub-themes will be addressed: management of demographic change and management of restructuring. For the new programming period 2007-2013, Article 6 in its current form will cease to exist. Further information is available on the "Europa" website [26].

[26] http://europa.eu.int/comm/employment_social/esf2000/article_6-en.htm

Timing: Second round of applications: 26.01.2005. Third round of applications: 25.01.2006

3.1.5. Protection of intellectual property rights

Promoting awareness, educating right-holders and providing tools to combat counterfeiting and piracy are key issues for the protection of IPR. The Directive on Enforcement of Intellectual Property Rights [27], the Regulation establishing the Community Customs Code [28], and the Regulation concerning customs action against goods suspected of infringing certain intellectual property rights and the measures to be taken against goods found to have infringed such rights [29] provide a solid basis for actions at EU level. The Commission Services are preparing an additional piece of EU legislation relating to criminal sanctions on counterfeiting.

[27] Directive 2004/48/EC, O. J. L 195, 02.06.2004, p. 16

[28] Commission Regulation (EC) 2286/2003 of 18 December 2003 amending Regulation (EEC) 2454/93 laying down provisions for the implementation of Council Regulation (EEC) 2913/92 establishing the Community Customs Code, O.J. L 032 , 05.02.2004, p. 34

[29] Council Regulation (EC) 1383/2003 of 22 July 2003, O.J. L 196, 02.08.2003, p. 7

Recommendation of the HLG: Create a multi-sectoral IPR Unit within the Commission.

Action: IPR issues are being closely followed by several Commission Services and tasks are divided among them according to the field of competence concerned. The Commission itself decides how to structure its Services, and feels that the creation of such a multi-sectoral IPR unit would bring no extra value-added. The Commission Services will continue to pursue their tasks in the field of IPR and will extend collaboration between the Services involved. In relation to the enforcement of IPR, the Commission Services will actively monitor the timely and correct transposition of Directive 2004/48/EC.

Recommendation of the HLG: Set up a user-friendly European web-site on IPR.

Action: The Commission Services will examine the feasibility of creating a user-friendly multi-lingual European web-site on IPR and enforcement issues. The IPR Help-desk website [30], which is co-financed by the Commission and currently run by a private contractor, could act as a starting point. The website will contain essential IPR related issues:

[30] http://www.ipr-helpdesk.org/index.htm

- information on the means of protecting IPR at national, EU and international levels;

- existing legislation in the customs field at national and EU level supplemented with practical information/guides;

- a list of bodies and authorities competent for IPR at national and EU levels;

- a database of national and Community judicial decisions related to IPR;

- a FAQ section;

- an electronic version of an updated International Practical Handbook of IPR for the textiles and clothing industry;

- an electronic version of an "ABC" book on the protection of IPR.

Timing: 2004-2005

Recommendation of the HLG: Raise awareness and provide more and better information to right-holders, paying particular attention to SMEs.

Action: Based on the above recommendation, the HLG proposed an "ABC" handbook, to be drafted on a similar basis to the ORGALIME document, with a well-arranged text, illustrations and replies to questions such as "what can be protected and how?", "what are the costs?", "where to go in X country?", "how does it work in X or Y country?" etc. The handbook would raise awareness of the problems posed by counterfeiting and piracy, and of the existing practical solutions. The Commission Services will endeavour to find a funding opportunity for publishing a concise "ABC" book on the protection of intellectual property rights within the textile and clothing sector, which would be elaborated by industry stakeholders.

Recommendation of the HLG: Organise EU customs seminars and networking.

Action: The Commission Services will organise EU customs seminars across the enlarged EU in the presence of national customs officers, customs experts and relevant Commission services, on the model of the EU seminars organised in the past. Objectives:

- raise awareness of the problems the textile and clothing industry face;

- provide specialised training to operational customs units on detection of fakes identified by right holders or their associations;

- increase co-operation between the industry and customs authorities, in particular as far as design/model protection is concerned;

- facilitate mutual understanding between customs and police authorities and right-holders (in particular SMEs);

- improve exchange of information between those involved in the fight against counterfeit.

Timing: 2005-2006

3.1.6. Regional initiatives

Recommendation of the HLG: The Commission should envisage the possibility of giving special consideration to projects submitted for EU funding submitted in the framework of Local Strategic Plans for textiles and clothing.

Action: It is not up to the Commission to evaluate projects submitted for EU funding and therefore it cannot give special consideration to textile and clothing projects. Evaluation is undertaken entirely by national/local managing authorities.

Recommendation of the HLG: The Commission should be receptive to any proposal for re-programming the Structural Funds put forward by a Member State in order to cater more for the needs of the textile and clothing sector.

Action: The Commission Services have no objection to the potential re-programming of the Structural Funds, as it is entirely up to the national authorities to envisage re-programming and focus on the sectors in need.

Recommendation of the HLG: The Commission should examine the possibility of setting up a specific regional initiative for the textile and clothing sector within the new programming period 2007-2013.

Action: The Commission does not recommend any specific regional initiative targeting a single sector. Participation of the textile and clothing sector in a multisectoral regional initiative would provide an adequate and more efficient framework for supporting the sector.

Recommendation of the HLG: The Commission should continue to examine the possibility that all Member States hold back a "reserve" of 1% of the total amount of the Structural Funds available, to be used in the event of emergency.

Action: On 14 July 2004, the Commission adopted a proposal for five new regulations for renewed Structural Funds and instruments. The major part of these funds will be made available in less-developed Member States and regions. The Structural Funds aim to promote growth-enhancing conditions for the Union's economy and will focus on three new future objectives: convergence, competitiveness and co-operation. Among other issues the Commission proposes (Article 49) that the Member State shall reserve an amount of 1% of the Structural Fund annual contribution for the "Convergence" objective and 3% of the Structural Fund annual contribution for the "Regional competitiveness and employment" objective to cover unforeseen local or sectoral crises linked to economic and social restructuring or to the consequences of trade opening. Like other sectors in unforeseen or sectoral crises, the textiles and clothing sector might be covered under this objective.

Recommendation of the HLG: The Commission should establish a Community sectoral programme for the textile and clothing sector.

Action: Based on previous experience, the Commission does not recommend a sector specific Community programme which would risk being fragmented into too many micro-projects with little significant impact on the sector as a whole. A multisectoral programme would allow for diversification of production between various sectors and would be of greater benefit to the region.

3.1.7. Research and innovation

One of the main competitiveness challenges facing the textile and clothing industry is being met by the Commission's research and innovation programmes, as is illustrated by the number of successful projects supported by Priority 3 (NMP [31]) of the 6th Framework Programme for Research and Development (FP6). These and other similar research activities (representing a total EU funding of EUR41 million) will clearly contribute to the modernisation of the sector through the development of high added value products and processes such as flexible, intelligent, manufacturing systems, a new generation of eco-efficient processes, and multifunctional materials and technologies. New rules on state aid will also contribute to meeting the innovation needs of the industry. Furthermore, a long term Research Vision and Strategic Research Agenda for the industry, which is to be developed by the planned European Technology Platform for textiles and clothing, will further enhance the transition plans of the industry to transform from a resource-based to a knowledge-based high value-added industry.

[31] Nanosciences, knowledge-based multifunctional materials, and new production processes and devices

Recommendation of the HLG: Achieve a technology breakthrough in apparel manufacture, with EU co-funding.

Action: The Commission is supporting under the NMP Programme with a total EU funding of EUR1.4 million the "LEAPFROG" Co-ordinated Action, which aims to establish a "knowledge community" for intelligent apparel manufacture. This is considered to be a strategic response by the industry in its efforts to modernise apparel manufacturing in Europe.

Furthermore, industry has also submitted under the NMP Programme the Integrated Project "LEAPFROG" (with a total budget of EUR27 million and grant requested of EUR15.6 million), which represents a substantial attempt by the sector to innovate the technology base of apparel manufacturing. The second step of the evaluation process has led to a positive evaluation outcome. This integrated effort will build upon the co-ordination activities mentioned above and will develop radical technological solutions in cutting and sewing systems. These will also incorporate innovative technologies from raw materials, thus providing holistic solutions that will enable the transformation of textile and clothing apparel manufacturing into a productive knowledge-based industry.

Timing: on-going

Recommendation of the HLG: In the FP6 IST Programme: the introduction of a specific action line in the IST work programme for 2005 for applied research and technology take-up actions for virtualisation, supply chain management and e-business applications in the field of design, customisation and innovative customer service of consumer and industrial textile-based products.

Action: The Commission has launched a call for proposals under the IST thematic priority of FP6 to stimulate, encourage and facilitate the participation of organisations from the New Member States (NMS) and the Associated Candidate Countries (ACC) in the activities of IST, or to progress towards the achievement of the objectives of the European Research Area in a given IST field. This offers opportunities to the T/C sector to include partners from NMS and ACC in ongoing research efforts on subjects such as mass customisation and supply chain management.

The Commission will include in its IST work programme for 2005 a specific action line, as part of the new Strategic Objective on "ICT for networked businesses", for Integrated Projects and Specific Targeted Research Projects (STREPs) on ambient intelligent technologies for new products, services and the business environment. This is expected to offer adequate opportunities for submission of proposals from the textiles and clothing sector. Research activities, for example, may address decentralised architectures of intelligent communicating objects, allowing new approaches for collaboration, planning, scheduling, material management, auctioning, tendering, invoicing, workflow management, knowledge management or other business processes. Such systems will transform the industry's capability to rapidly respond to continuously changing customer demands, and considerably improve the competitiveness of the whole sector.

Timing: during 2005

Recommendation of the HLG: In the FP6 NMP Programme, the introduction of a specific action line for applied research in multi-functional fibre and textile-based products and related processes to be included in the NMP work programme for 2005.

Action: The Commission will continue to co-finance research activities that are considered essential for the industry's effort to pursue the development of products and markets characterised respectively by high added value and growth potential. The Commission will launch a call in December 2004 for a specific action line under the NMP programme for technical textiles with high added value content, allowing the development of new markets in the areas of construction, protective clothing and medical uses. This specific priority is designed for Integrated Projects for SMEs, which form the bulk of the textile and clothing industry (95% of companies are SMEs). Another call for proposals will be launched in December 2004 for a specific action line under the NMP Programme for biomaterials for implants, in which biocompatible textiles used as a basis for novel high-tech implants could provide innovative solutions in the digestive and cardiovascular implant industry. This specific priority is also designed for Integrated Projects for SMEs. For these two specific action lines particular attention should be given to the potential for industrial innovation offered by new nanotechnology-based R&D, including research areas on nano-composite-fibers, nano-coating and nano-functionalisation.

Timing: December 2004

Further action: The Commission will support R&D activities related to eco-efficient processes and high added value products, such as a new generation of multifunctional materials based textile products. To name a few projects already in progress: The STREP "ULTRATEC" (with a total budget of EUR3.1 million and EU funding of EUR1.9 million) will develop new finishing processes with lower environmental impacts by using ultrasound technologies, making the whole industry more environmentally friendly. The Integrated Project for SMEs "FLEXIFUNBAR" (with a total budget of EUR11 million and EU funding of EUR6.4 million) will develop a new generation of multifunctional materials for different applications in technical textile sectors (such as transport, medical uses, protection and clothing) as well as in the paper and footwear sectors. The Integrated Project for SMEs "AVALON" (with a total budget of EUR12.3 million and EU funding of EUR7.4 million) will develop novel hybrid textile structures integrating shape memory alloys and the related process techniques for intelligent fabrics (medical and protective), as well as reinforced composites for civil aviation, the automotive sector and aerospace. The Integrated Project for SMEs "ACTECO" (with a total budget of EUR7.7 million and EU funding of EUR4.2 million) will develop novel processes based on the combination of nanotechnology and plasma surface engineering for a new generation of hyper functional textiles.

Recommendation of the HLG: Investment in non-technological innovation should not be treated any differently from parallel investments in research and development and the Commission should examine rules on state aid allowing the Member States to do this.

Action: The Commission has recognised the importance of non-technological innovation and the need to support it. This will be, for instance, one of the central messages of the Commission's proposed Innovation Action Plan.

This notwithstanding, the Commission Services are of the view that state aid would not be the most appropriate instrument to stimulate non-technological innovation. While the Council has emphasised repeatedly that state aid needs to address well-identified market failures, near-market innovative activities are in general not affected by market failures to the same extent as technological research and development.

The Commission Services intend, however, to review the state aid rules affecting innovation. The Commission Services plan to release in autumn a vademecum on state aid to innovation, followed by a specific Communication in 2005 that will identify the market failures affecting innovation, and if necessary adapt the relevant state aid frameworks and guidelines. Furthermore, the Commission Services will consider later this year a Communication on the so-called Significant Impact Test and more specifically LASA (lesser amounts of state aid) that would allow for aids of up to EUR1 million for projects inter alia regarding SMEs, innovation, and the granting of risk capital with a more streamlined and rapid procedure.

Timing: 2004-2005

Recommendation of the HLG: In FP6, the introduction of stricter requirements for the involvement of SMEs in all types of horizontal research projects, more substantial budget provisions for STREP, CA, and SSA funding instruments and the re-introduction of technology transfer and take-up measures.

Action: The Commission is fully aware of the importance of SMEs for competitiveness and the creation of jobs in Europe and acknowledges the need for SMEs to have access to the results of science and technology. The textile and clothing industry's participation in the various schemes for SME research (e.g. CRAFT and Integrated Projects for SMEs) has been recently encouraging and reflects willingness of SMEs to carry out research activities at high scientific and technical level.

Recommendations of the HLG: In FP7, the use of transparent economic parameters to guide priority setting and budgeting, a better reflection of the need for more applied research via funding instruments such as STREP and IP-SME, and maintaining and substantially increasing funding for SME schemes such as CRAFT and collective research. In general, the improvement of general conditions governing access to funds, covering issues such as proposal submission procedures, reduction of time to contract and improved payment system.

Action: The precise outlines of FP7 are still under discussion. However, the Member States' research ministers at the informal Competitiveness Council on 2-3 July 2004 agreed that FP7's approach to SMEs should be more bottom-up and problem oriented, while administrative and regulatory burdens should, whenever possible and appropriate, be lightened. In addition, the "Marimon" mid-term evaluation of FP6 instruments [32] presented to the informal Competitiveness Council on 3 July 2004 addressed many of these issues. The Commission has examined how best to follow up its recommendations on, for example, increased flexibility for participants, SME participation, project evaluation procedures and time to contract, and has adopted a Communication [33] setting out the actions already taken within FP6 and those foreseen for FP7.

[32] For further information, and the full text of the report, see: http://www.cordis.lu/fp6/instruments_review

[33] Communication responding to the observations and recommendations of the high-level Panel of independent experts concerning the new instruments of the 6th Framework Programme, COM(2004) 574 final of 27.08.2004

Timing: On-going, 2004-2005

Recommendation of the HLG: In the lead up to and launch of FP7, creation of an European Technology Platform for Textiles and Clothing by the industry, in co-operation with research institutes and universities, and related sectors, to make improved and more co-ordinated use of existing structures, better define industry wide structures to avoid fragmentation, and create overall industry driven long-term visions and technology road maps implemented by co-ordinated research efforts.

Action: The main elements of FP7, and the role that could be played by European Technology Platforms, are outlined in the Communication "Science and Technology, the key to Europe's future" [34]. The Commission Services are also preparing a working document on Technology Platforms to clarify their key features and objectives. This will be published during the second half of 2004 on the Commission's new "technology platforms" web-site [35]. In addition, the Member States' research ministers at the informal Competitiveness Council on 2-3 July 2004 agreed that European Technology Platforms could play an important role in mobilising research, technological development and innovation efforts and creating greater synergies between national, regional and European initiatives in the process of formulating a pan-European strategic research area. Built on the already successful projects supported under the 6FP, a European Technology Platform, which would define a Research Vision for 2020 and a Strategic Research Agenda, could be launched to increase the competitiveness and sustainable economic growth of the textile and the clothing sector.

[34] COM(2004) 353 final of 16.06.2004

[35] www.cordis.lu/technology-platforms/

Timing: From Autumn 2004

3.1.8. Trade policy issues

Over the last year the Commission Services have carried out intensive work open to all interested parties to examine the likely consequences of, and the main issues and challenges posed by the elimination of remaining quotas on 1 January 2005, and to consider possible trade policy responses to address them. They called a large international conference on "The Future of Textiles and Clothing in 2005 and Beyond" held in Brussels on 5-6 May 2003, attended by participants from 80 countries, where the main issues were identified.

Within the shortest possible time-frame, the Commission Services intend to take the following trade related measures and policy lines.

3.1.8.1. Market access

Recommendation of the HLG: The EU should maintain its position in the WTO in favour of harmonisation of custom duties at the lowest possible level and the elimination of all non-tariff barriers, as suggested in the Commission Communication of 27 October 2003. The EU should continue to seek reciprocity for the dismantling of tariffs in its bilateral trade agreements. The Commission should establish an action plan to address existing trade barriers in third countries, with more resources being devoted to market opening action to ensure respect of international obligations by EU trading partners.

Action: As regards access to third country markets, in addition to maintaining its position in the DDA negotiations and in bilateral agreements, the Commission will establish in close consultation with industry an action plan to address market access barriers and in particular non-tariff barriers and other obstacles which may be inconsistent with international rules and obligations. A task force composed of interested parties will work from September on the list of obstacles and the establishment of priorities, taking into account the results of a market access study launched by the Commission Services which will be ready in the autumn of 2004.

Timing: From Autumn 2004

3.1.8.2. Trade defence instruments and trade barriers regulations

Recommendation of the HLG: Establishment of transparent procedures and criteria for evaluation of requests for safeguard measures under the textiles-specific safeguard clause in China's Protocol of Accession to the WTO, in order to improve transparency and predictability for all operators. A call for the use of safeguards according to objective criteria, when the legal conditions for their use are met.

Action: The Commission will establish and publish guidelines containing procedures and criteria that the Commission Services intend to follow, in conformity with the relevant Regulations adopted by the Council, for the application of safeguard clauses and in particular for the textiles-specific safeguard clause set out in China's Protocol of Accession to the WTO.

Timing: Before the end of 2004

3.1.8.3. China: import monitoring and dialogue

Recommendation of the HLG: Continuing the Sino-EU textiles trade dialogue agreed on 6 May 2004, at both government to government and business to business levels, and setting up a monitoring system to examine the evolution of imports from China, the conditions of production in China, the market access it offers to the EU and its compliance with its WTO commitments.

Action: The Commission Services will continue the Sino-EU textiles trade dialogue agreed in May 2004. As regards monitoring of EU imports from China, the Commission Services are considering surveillance on the basis of customs declarations under Article 308d of Regulation 2454/93 [36] for the textile and clothing categories exported by China and to be liberalised at the end of 2004. Currently, this option provides a single unit of measurement (value, or weight, or supplementary unit). As 308d surveillance is able to collect all amounts declared on a customs declaration on a regular short-term basis, this surveillance could be used to provide early notice of import levels. Further, EUROSTAT data could be used to indicate price/quantity relationships insofar as it has data for the period concerned. The different options available are still under consideration by the Commission Services.

[36] Commission Regulation 93/2454/EEC, O.J. L 253, 11.10.1993, p. 1

Timing: Sino-EU textiles trade dialogue on-going. Monitoring of imports: 2004-2005

3.1.8.4. Euro-Mediterranean zone

Recommendation of the HLG: Acceleration of efforts to make the Pan-Euro-Mediterranean area for textiles effective by the end of 2004, including allowing diagonal cumulation of origin for textiles and clothing without requiring - at least for an interim period - the conclusion of fully-fledged free trade agreements among the Mediterranean countries, subject to certain conditions.

Action: As regards the Pan-Euro-Mediterranean area, immediate action is needed to expedite the procedures for the adoption of the Pan-Euro-Mediterranean origin protocol by the EU and its Euro-Med partners, and to encourage Mediterranean partners to conclude quickly free trade agreements among themselves. As the procedures aiming at the introduction of Pan-Euro-Med cumulation of origin are well advanced, any proposal which redefines the rules at this stage will further delay the process. However, as agreed at the Fourth Euro-Med Trade Ministerial Conference, which took place in Istanbul on 21 July 2004, the Commission will examine with the other Pan-Euro-Mediterranean partners whether the Pan-Euro-Mediterranean origin protocol could be temporarily implemented, provided that an FTA is initialled and provisionally applicable and subject to certain conditions (application of identical rules of origin, necessary means of control and minimum liberalisation of products among the countries concerned). In this relation, systems of the diagonal cumulation of origin in all partner countries will need to be monitored in order to avoid interpretation problems, and to check whether the legislation has been respected or not.

Timing: Before the end of 2004

3.1.8.5. Generalised System of Preferences

Recommendation of the HLG: Targeting better and concentrating the EU unilateral trade preferences (GSP) to favour the least developed countries (LDCs) and the smaller suppliers, including measures in the area of rules of origin to enable exports from LDCs to effectively enter the EU duty-free, along the basic principles stated on this subject in the Communication of 27 October 2003.

Action: Following the framework set out in the Communication "Developing countries, international trade and sustainable development: the function of the Community's generalised system of preferences (GSP) for the ten-year period from 2006 to 2015" [37] the Commission intends to concentrate the EU unilateral preferences in the context of the GSP in favour of the most vulnerable countries (smaller textile and clothing exporters) and of the LDCs, through adequate graduation mechanisms. Measures will be undertaken to facilitate a wider sourcing of intermediate textile products for the LDCs. In this context, it will be necessary to continue monitoring the GSP system and strengthening administrative co-operation through anti-fraud provisions of the preferential trade regime.

[37] COM(2004) 461 final of 07.07.2004

The Commission's Green Paper on the future of rules of origin in preferential trade arrangements [38] triggered a debate on this subject. The need for change is widely recognised: in form (simplification), in substance (amendment of the origin criteria and cumulation rules) and in procedures (formalities and controls). The benefits of the system could be enhanced through regional cumulation, thus promoting regional integration. The Commission Services will complete their analysis of the results of the Green Paper and the first concrete result will be the proposal on rules of origin to complement the new GSP scheme applicable from 2006. The Commission Services take note of the proposals made by the High Level Group, but cannot pre-judge the outcome of this exercise. No decisions on the shape of new rules of origin have yet been taken.

[38] COM(2003) 787 final of 18.12.2003

Timing: 2004-2006

3.1.8.6. Sustainable development

Recommendation of the HLG: Continuation of the Commission's work with interested parties on social/environmental labelling with a view to reaching a better understanding of the issues, on the basis of which the Commission would then be in a position to take appropriate initiatives to raise awareness and develop higher sustainable development standards.

Action: The Commission Services will undertake a further consultation with interested parties with a view to reaching convergence of positions or agreement on recommendations, within the next 3-4 months. On this basis the Commission will adopt the necessary initiatives, including when appropriate proposals to the Council regarding both origin labelling and social and environmental labelling. Sustainable development standards and social and/or environmental labelling will be used as positive discrimination for compliant products, and not as restrictions to market access, in line with the traditional approach taken by the Commission on the environmental and social clause in the GSP.

Timing: 2004-2005

3.1.8.7. TBR and anti-dumping

Recommendation of the HLG: Measures to make the Trade Barriers Regulation and Anti-Dumping instruments more user-friendly for SMEs.

Action: The Commission will adopt, by the end of 2004, practical measures to facilitate the use of the Trade Barriers Regulation and the different trade defence instruments by sectors where SMEs predominate, such as the textile and clothing sector.

Timing: Before end 2004.

3.2. Actions at Member State level

The HLG report includes proposals for actions to be undertaken by the Member States at national and/or regional levels. Those recommended actions reflect a consensus of opinions expressed by private stakeholders. The report, however, neither commits the Commission Services nor those national public authorities which actively participated in the High Level Group exercise to endorsing or implementing the conclusions reached in the Group.

Nevertheless, the Commission Services invite the Member States to examine the recommendations put forward and to take initiatives which would help the textile and clothing industry to improve its competitive position. The Commission Services also encourage Member States to continue co-operation and to further increase co-ordination of actions at Member State and EU levels. Furthermore, the Commission Services invite the Members States to consider an exchange of best practices and success stories, and to work towards their wider dissemination.

With reference to the High Level Group report "The Challenge of 2005 - European Textiles and clothing in a quota free environment", the Commission Services invite national and/or regional public authorities of the Member States to:

Public procurement

- take into consideration criteria other than price alone in their purchasing decisions on public procurement. Member states are invited to make use of option a) of Article 53 of Directive 2004/18/EC [39]. In doing so, Member States may find guidance in the non-binding document of the Commission services "Buying Green. A handbook on environmental public procurement" [40];

[39] Directive 2004/18/EC, O.J. L 134 , 30.04.2004, p. 114

[40] SEC(2004) 1050 final of 18.08.2004

- clearly indicate the various criteria and their weighting when publishing calls for tender.

Competition policy

- improve control, transparency and security in reverse auctions to prevent unfair competition (sham auctions).

Access to finance

- undertake an assessment of existing financial instruments providing access to credit for SMEs at national/regional level and identify what further action may be needed to meet the special requirements of the textile and clothing industry.

Intellectual property rights

- transpose and implement the Directive on Enforcement of Intellectual Property Rights within the time specified in the Directive;

- encourage specialized entities or other national organisations to co-operate across the enlarged EU in their work to advise companies on IPR problems, as well as to encourage these organisations to set up activities in those Member States where they do not yet exist;

- continue co-operation and increase collaboration with the European Commission when organising seminars on customs-related issues in order to facilitate mutual understanding among right-holders, SMEs, the police and customs authorities.

Regional initiatives

- establish in close co-operation with local stakeholders Local Strategic Plans for the textiles and clothing sector for actions that could be funded by the Structural Funds. All the actions carried out to fulfil the objectives of these plans should be visible and should set out clearly the implications in terms of access to European funding, more specifically for SMEs;

- envisage re-programming the Structural Funds for the final two years of the period 2000-2006, with the aim of catering more clearly for the needs of the textile and clothing sector in the run-up to and immediate aftermath of the expiry of quotas;

- consult textile and clothing stakeholders on possible (re-)programming of the national programmes within the framework of the Structural Funds;

- envisage the possibility of taking a positive approach towards proposals put forward by the textile and clothing sector during evaluation of projects submitted for EU funding;

- undertake specific regional initiatives for the sector to enable companies to better face the difficulties arising from the repercussions of 2005 and to facilitate, if needed, the relocation of their workers to other areas of the labour market;

- endorse the proposal of the Commission to reserve an amount of 1% of the Structural Fund annual contribution for objective "Convergence" and 3% of the Structural Fund annual contribution for the "Regional competitiveness and employment" objective to cover unforeseen local or sectoral crises linked to economic and social restructuring or to the consequences of trade opening.

Information and image building

- conduct awareness raising campaigns ("roadshows") around the principal regions, with the objective of drawing the attention of managers of smaller companies to R&D and innovation developments, developments in IPR legislation, etc;

- support image-building measures undertaken by stakeholders to counteract any negative profile, e.g. by publishing a brochure containing examples of best practice and success stories.

Research & development, innovation

- improve co-ordination of research activities at regional and national level to complement EU level actions and to result in a better overview of what is already being undertaken in the sector at all levels and the opportunities available.

Education, training and employment

- establish, where not already in existence, national training and employment "observatories" to create training momentum at all levels to upgrade both qualifications and skills and make it possible to adjust to, and anticipate, the changes the textile and clothing sector is undergoing;

- set up or reinforce, where necessary, reclassification and reconversion units for workers in areas that rely heavily on textiles and clothing. These should ideally involve social partners and individual companies as well as public authorities in a joint partnership to mitigate the social impact of redundancies and factory closures;

- develop and implement in relation with the above recommendation methods/systems for identification and recognition of work experience (competences gained outside formal education and training) in order to make visible the full range of competences held by an individual, irrespective of their origin;

- develop more coherent and effective lifelong learning strategies in line with the Lisbon objectives and the Training and Education 2010 work programme [41] in order to train and re-train workers from the sector;

[41] http://www.europa.eu.int/comm/dgs/education_culture/publ/pdf/educ-training/en.pdf

- integrate into regional programmes under the Structural Funds increased opportunities for supporting regions that undergo industrial change, particularly in the textiles and clothing sector. A particular priority should be give to (re-)training and (re-)skilling of the workforce as to enable the sector to retain and create high quality jobs.

3.3. Actions at Stakeholder level

Private stakeholders have committed themselves to play their full part in ensuring rapid progress towards the achievement of the objectives which were set in the HLG report.

In many cases in the previous chapters of this report, the Commission Services have outlined the opportunities for EU-level funding, or co-funding, of projects. The vast majority of these opportunities are horizontal programmes or calls for tender, open to all industrial sectors. It is self-evident that it is the responsibility of stakeholders in the textiles and clothing sector to collaborate in presenting high quality project proposals which fulfil the criteria and priorities of the funding programmes and clearly demonstrate the added value for the competitiveness of the sector.

With reference to the recommendations of the High Level Group report "The Challenge of 2005 - European Textiles and clothing in a quota free environment" [42] the Commission Services encourage industry stakeholders, including trade unions, to take an active role in improving their competitive conditions and invite them to:

[42] See footnote 1

- set up a cross-border network of associations and companies affected by potential abuses of market power, and elaborate a European Code of Conduct on competition;

- take measures for improving the image of the textile and clothing sector;

- establish a task force made up of the whole textile/clothing pipeline at EU level, including fibre producers, retailers and related branches (textile machinery and transport etc.), in order to develop new approaches towards marketing strategies;

- actively participate in the EU-China dialogues to ensure a cooperative attitude of the Chinese industry and to promote CSR practices of the Chinese companies and workers;

- examine ways of how best to raise awareness at magistracy, consumer and retailer level on intellectual property rights and their protection;

- develop consumer-oriented commercial strategies;

- support or launch IPR awareness campaigns for companies through leafleting of fairs, dissemination of slogan based information and web-message information;

- examine further the feasibility of an export promotion initiative conceived on a regional basis and specifically dedicated to the needs of smaller companies of the T/C industry;

- launch a survey to identify any current abuses or unfair practices, together with best practices which exist between industry suppliers and retailers, and to consider the usefulness of examining any evidence of unfair practices in B2C (business to consumer) transactions;

- develop an overview of available manufacturing research programmes at national or regional level to extract and disseminate best practices and where appropriate follow up with launching ERA -Net initiatives;

- set up, with the assistance of the European Commission, a European Technology Platform for Textiles and Clothing, with the objective of co-ordinating existing research efforts to avoid fragmentation and creating an overall industry-driven long-term strategy, implemented by co-ordinated research efforts;

- take better advantage of the opportunities offered by information and communication technology (ICT) for modernising supply chain management in particular. The industry associations have a role here in communicating the competitive advantages to be gained from an increased use of ICT within the sector;

- take full advantage of the opportunities for deepening collaboration within the sectoral social dialogue at European level, for establishing priorities and for undertaking joint projects with added value for the sector;

- work together at regional and EU level to exchange best practices in the area of reconversion and reclassification of workers, within the framework of the sectoral social dialogue;

- Create a pool of competence, building up a network between colleges and universities to analyse, list and compare existing systems in order to develop post-university exchanges, jointly set up a structure for future courses of study, and perhaps even work towards defining a "European degree".

4. Conclusions and next steps

This Staff Working Document reflects how the Commission Services plan to translate most of the recommendations put forward by the High Level Group into concrete actions. The ensuing debate with the Member States will also enable the Commission to have their views on the proposed measures and their implementation. The implementation of some of these actions will, however, necessitate adjustments on the side of the Commission. It will be necessary to take into account the question of resources, in particular for trade related measures, as some of them entail a significant amount of additional work for which current human and financial resources are already stretched.

The Commission Services also recognise that within the short time available the High Level Group was not able to discuss all issues of relevance to the competitiveness of the European textiles and clothing sector, and that some issues would benefit from further debate, notably non-technological innovation, access to finance and industrial