Posted on 12/16/2004 9:00:23 AM PST by jb6
Millions of the world's poorest textile trade workers will lose their jobs under new trade rules to be introduced in the new year, a charity has warned. The World Trade Organisation (WTO) is to end its Multi-Fibre Agreement (MFA) at midnight on 31 December.
Christian Aid condemned the move, saying it would see almost a million jobs in Bangladesh alone being axed.
However, supporters of the change claim it will mean increased efficiency and lower costs for Western consumers.
Supporters also argue the move will see more jobs created in India and China.
Period of adjustment
Many companies will continue with existing trading relationships
Keith Rockwell, World Trade Organisation
The WTO said that many developing countries support the end of quotas and stressed that funding was available to countries such as Bangladesh to help them make the transition to a fully liberalised market.
"There will be a period of adjustment required," said WTO spokesman Keith Rockwell.
"Some countries will do better than others but there is no one who is suggesting that no developing country will do well out of this.
"Some countries where it may appear that orders will dry up have seen orders surging, and there are many companies who will continue with existing trading relationships."
China effort
The MFA was established in the 1970s to give some protection to the textile industries of industrialised countries facing competition from countries with lower manufacturing costs.
We are deeply concerned that the New Year will spell misery for huge numbers of garment workers
Christian Aid
How Bangladesh is preparing for the changes
Quotas were set up when a surge of imports threatened to cause serious damage to a country's indigenous producers.
Since 1995, the WTO has been gradually phasing out quotas to bring trading agreements governing textiles into line with global free trade regulations.
Many countries originally supported the WTO policy but are now fearful that China, which became a WTO member in 2001, will overwhelm the market.
China now accounts for about 17% of global textile sales, but some experts believe this could rise to 50%.
Christian Aid has warned that millions of jobs will be lost, in a new report called Rags To Riches To Rags.
It added that with few employment alternatives available many sacked garment workers could end up in far worse jobs - with some of the mainly female workers forced into the sex trade.
Riches to rags
Some of the world's fastest developing countries rely on textile exports to build growth - for example in Bangladesh textiles account for almost 85% of the country's exports.
China could dominate the textile market, some experts believe
While the current MFA was not perfect, Christian Aid said, it did allow Third World countries like Bangladesh to get onto the first rung of industrial development.
"The losers in this new trade landscape will be some of the most vulnerable workers in countries such as Bangladesh, Cambodia, Sri Lanka and Nepal," said Andrew Pendleton, Christian Aid's head of trade policy.
"They will be hard-pressed to cope when garment industries there lose their protection.
"We are deeply concerned that the New Year will spell misery for huge numbers of garment workers."
European producers believe a fully liberalised market could benefit them but only if China and other countries scrap current trade barriers.
"We are free traders and we do not have a problem with that," said Filiep Libeert, president of European trade association Euratex.
"Most of the industry has been able to prepare itself over the last ten years and has moved to restructure itself and develop new products."
Didn't buy anything.
WONDERS OF FREE TRADE CONTINUE
I'm all for "free" trade and open market economies, but that doesn't include "slave" labor in commie countries.
MASERU, Lesotho - As many as 50,000 workers in this tiny African mountain kingdom could lose their jobs after World Trade Organization (news - web sites) textile quotas are lifted on Jan. 1, trade union leaders warned Wednesday.
The Lesotho Clothing and Allied Workers Union fears cheap Chinese-made clothing will flood the United States — Lesotho's main market — and African manufacturers won't be able to compete.
"This will adversely affect our exports to the United States, and millions of workers in almost every textile and clothing producing nation may lose their jobs," said Daniel Maraisane, the union's secretary-general.
U.S. Trade Representative Robert Zoellick sought to play down the concerns on a visit earlier this week. He pointed out that Lesotho enjoys a competitive edge under the African Growth and Opportunity Act, or AGOA, which gives its textiles duty-free access to the United States.
***
Don't worry Lesotho, says Zoellick, US taxpayers, employed or otherwise, will make sure you have plenty of our tax dollars to ease your pain.
What is it about a global "free trade" organization that convinces countries that despite their best interests they should allow the WTO to throw so many of their people out of work. I guess as long as they get some advantage from the US taxpayer, its palatable to their governments.
Well, I'm sure the elites are making off well so who cares about the workers. I swear, we are setting ourselves up for another mass round of communist revolutions. We think we slew the beast and set up the correct breading grounds for its spores to resettle. In Italy there is already a major communist movement. Seems the unemployed Italians don't have the credit limits of Americans.
What do you think is happening to those people in America being displaced by free trade. To those factory workers, to those farmers and yes, even to some of those IT guys? Do you really think that the communist party of America is sitting on its hands while this windfall of pissed off empoverished peoples falls all around it. It's organizing and hopefully we won't be to late in recognizing the cancer before its terminal.
What I love most about the Free Traitors is that they expect big government to retrain and take care of the American workers left behind when factories move to slave labor China and other such nice spots.
Setting up (gubermint paid) retraining for individuals who lose out in free trade deals is big business here in Oregon. Mostly their lucky if they get $8.00 with no bennies.
Best part, they get corporate welfare for relocating overseas and government insurence.
And mainly for us.
LOL, how did we ever swing that deal?
Christmas shopping, here I come....
They recently had a major march in north west italy and ransacked several large stores, throwing out goods. There were local government members heading the march and the cops stayed out. It's coming here too when the credit runs out.
I wonder just how many textile jobs all over the world will be lost. I also wonder if these new rules, that give China a huge advantage over all producers, is a payback or bribe to China for something or someone.
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