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GENERAL AGREEMENT ON c™?EX/îL 30 June 1980

TARIFFS A N D T R A D E Special Distribution

Textiles Committee Working Group on Adjustment Measures

REPORT BY THE WORKING GROUP ON ADJUSTMENT MEASURES

Terms of reference

1. At its meeting in December 1979, the Textiles Committee decided that a Working Group be requested to carry out a detailed examination of adjustment measures with reference to the objectives set out in paragraph h of Article 1 of the Arrangement^-, and to present a report thereon to the Committee for its meeting to be held in July 1980. It was further agreed that the Working Group of the Textiles Committee would be open to all participating countries (see COM.TEX/15, paragraphs 78 and 8U).

Structure of the report

2. The present report is submitted in response to this request. The report has been divided into the following three sections :

Section I sets out the introduction and general comments.

Section II summarizes the replies received from participating countries classified under the following headings:

Part A - Status of the textiles and clothing industry

(1) A general statement on national textile industries.

(2) Data on current state of production and trade in textiles and clothing.

(3) Information on investment, productive capacity, employment etc

Paragraph h of Article 1 reads as follows: "Actions taken under this Arrangement snail not interrupt or discourage the autonomous industrial adjustment processes of participating countries. Furtnermore, actions taken under this Arrangement should be accompanied by the pursuit of appropriate economic and social policies, in a manner consistent with national laws and systems, required by changes in the pattern of trade in textiles and in the comparative advantage of participating countries, which policies would encourage businesses which are less competitive internationally to move progressively into more viable lines of production or into other sectors of the economy and provide increased access to their markets for textile products from developing countries."

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Part B - Expansion and re-organization of the industry:

(1) Government and other plans for expansion.

(2) Government schemes for re-organization etc. and an assessment of their effect.

(3) Extent to which governments plan to develop particular sectors of the textile and clothing industries.

Part C - Adjustment measures and policies relevant to Article 1:U

(1) Autonomous adjustment processes and to what extent can they be attributed to changes in the pattern of trade and comparative advantage.

(2) Government measures to encourage business to: improve viability of current lines of production, to move progressively into more viable lines or to move out of the textiles sector: an assessment of their effects.

(3) Measures to deal with problems arising from closures, unemployment, etc.

Part D - Increasing access to markets made possible by the impact of the autonomous adjustment processes, as well as government adjustment measures and policies listed in Part III above.

Section III contains the submissions as received from the participating countries in response to GATT/AIR/loll and l6l2 of 13 March 1980. Replies received after 11 June have been included in an addendum to Section III, and have not been summarized in Section II, nor have they been reflected in the general comments in Section I .—

Annexed to this report are the texts of the airgrams GATT/AIR/16II and l6l2 and a table on "Exchange Rates: National Currencies to United States Dollars, 1970-1979".

Replies were received after 11 June from Hungary and Singapore.

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SECTION I

3. The Working Group of the Textiles Committee on adjustment measures, held its first meeting on 12 February 1980, under the Chairmanship of Mr. M.G. Mathur, Deputy Director-General.

h. For that meeting the Working Group had before it the last report on adjustment measures which was made available to the Textiles Committee for the December meeting in document COM.TEX/W/65. After a general discussion on the type of information that would respond to the objectives set out in Article 1:U the Working Group felt that the material contained in this report was not adequate to enable it to carry out its mandate.

5. The Working Group thus decided to proceed further on this matter by setting up a Technical Sub-Group. The Sub-Group was entrusted with the task of securing information relevant to the work assigned to the Working Group, and of examining such information for the purpose of the Working Group so that the latter would submit its report to the Textiles Committee in good time for its meeting in July.

6. As regards the composition of the Sub-Group, it was agreed that it should remain open to all participating countries interested in this work and those parties wishing to participate were, therefore, invited to notify the secretariat of their desire to do so. Delegations participating in the work of the Sub-Group were Brazil, Canada, Colombia, Egypt, Finland, India, Indonesia, Japan, Malaysia, Pakistan, Peru, Switzerland, Sweden, United Kingdom on behalf of Hong Kong, United States and the EEC as well as member States.

7. As a first stage in the preparation of its work, the Sub-Group held informal consultations and discussions with respect to the type of informa* L::. ^G be requested from participating countries which it further compered at its meeting on 12 March 1980. As a result of this meeting, two airgrams setting out the points on which information was to be sought were sent out on 13 March 1980. The first, GATT/AIR/l6ll requesting information on adjus*"ient measures relevant to Article l:k cf the MFA. The second, GATT/ H.IR/1612, requesting information on production, trade and adjustments in the textiles and clothing sectors as required by Article 10:2 of the Arrangement.-*•

The relevant words of Article 10:2 read as follows: The Committee "... shall undertake an analysis of the current state of world production and trade in textile products, including any measures to facilitate adjustment ...".

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8. The Sub-Group welcomed the fact that the information requested pursuant to paragraph 2 of Article 10 would be made available for its work, and urged that the information called for in the two airgrams should be provided as soon as possible and, in any event, not later than the deadline set out therein, i.e. 15 May 1980.

9. Since the Sub-Group had to work to a fairly tight timetable, participating countries were requested, on several occasions, to expedite their submissions. However, very few participants were in a position to meet the deadline of 15 May. As at 11 June, replies had been received from the following parties to the Textiles Arrangement: Austria, Brazil, Canada, Colombia, Egypt, EEC, Finland, Hong Kong, India, Indonesia, Israel, Japan, Korea, Macao, Malaysia, Peru, Sweden, Switzerland, Turkey and the United States.

10. The Sub-Group noted that as of 11 June information had not been received from a number of participants (i.e. Argentina, Bangladesh, Bolivia, Dominican Republic, El Salvador, Ghana, Guatemala, Haiti, Hungary, Jamaica, Mexico, Pakistan, Philippines, Poland, Romania, Singapore^ Sri Lanka, Thailand, Trinidad and Tobago, Uruguay and Yugoslavia).

11. The Sub-Group noted and welcomed that the replies received had provided substantially larger amounts of information than had previously been made available in respect of adjustment measures.

12. A summary of the replies received is compiled under the four main parts of Section II. In this connexion, it is to be recalled that information under Article 10:2 was sought from all pai-ticipating countries in the Arrangement (see GATT/AIR/l6l2). This information falls generally within Parts A and B of" Section II; Parts" C and D cover the information relevant to Article l:k on adjustments and access to markets requested from the participating countries concerned under GATT/AIR/l6ll.

13. Following its preparatory work, the Sub-Group met on IT and 20 June I98O and drew up a draft report for consideration by the Working Group. At its second meeting held on 23 June 1980, the Working Group adopted this report for submission to the Textiles Committee for its meeting to be held on 8-9 July 1980.

Ik. In considering the material thus collected it was recalled that the task of the Group was to carry out a detailed examination of adjustment measures in the context of the objectives set out in Article 1:U, and to report to the Textiles Committee accordingly.

As noted above, replies were received after 11 June from Hungary and Singapore .

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15. On the basis of information so far supplied, it can be seen that production in most of the importing developed participants has improved in the first two years of the extended phase of the MFA, although the production indices remain below the level of 1973. While this development in production was taking place, employment and the number of production units had continued to decline. World trade in textiles and apparel, as well as the limited data currently available on production indicate that this improvement had occurred in varying degrees world wide and that it paralleled the general economic growth patterns for 1978 and 1979.

16. The changing ratio between production and employment in the developed countries would suggest that the industries of these countries had improved their competitiveness and had taken advantage of technological innovations. However, it was not possible to establish a direct link between changes in production and trade figures and adjustment processes or measures that have taken place or are being undertaken.

17• In the context of Article 1:U of the Arrangement, it is even more difficult to relate the information available on adjustment processes and measures to the provision of increased access. It was pointed out that governments concerned have found that there are inherent problems in evolving a suitable methodology which would establish this relationship.

18. In terms of data needs, it is clear that an in-depth analysis would require that information on autonomous adjustment processes and government adjustment policies be supplemented where applicable and available, e.g. by greater details concerning the amount and distribution of expenditure among the different individual measures of assistance, industry specific comprehensive plans, development of more viable lines of production, scrapping of capacity, development of alternative industries, etc. More information would also be needed as to assessment by the governments concerned of the effect of their adjustment measures, and to what extent the textiles and clothing industries had benefited from general as well as sectoral related programmes.

19. It was noted that a comprehensive analysis would also require information, where applicable and available, from those participants which had not yet replied to the Working Group's request, e.g. data and information relating to the expansion, modernization or diversification of industries in participating countries; government policies and measures having a bearing on liberalization of trade in textile products; etc.

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20. In the light of these considerations, it was generally felt that this particular report, hased as it is on information so far available, would necessarily be limited in scope, given the variations in the degree of completeness of the data supplied by different participating countries, and frequently the lack of quantification or other basis for comparison in the information presented. The Working Group thus presents this report to the Textiles Committee as the best compilation of material possible in terms of the submissions by participants, and the methodological aspects involved. The matter is submitted to the Textiles Committee for its consideration as to such further action as it may wish to take.

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SECTION II

Summary of Information Received from Participating Countries

Status of Replies

1. Replies have been received relevant to the headings noted above, from the following participating countries:

PART A. Status of the industry (pages 9~26)

1. A general statement on national textile industries (pages 9~12)

Brazil, Colombia, EEC, India, Japan, Korea, Peru, Switzerland, United States.

2. Data on current state of production and trade in textile products (pages 12-19) Austria, Brazil, Colombia, EEC and member States, Finland, Hong Kong, India, Indonesia, Israel, Japan, Korea, Macao, Malaysia, Peru, Sweden, Switzerland, Turkey, United States.

3. Information on investment, productive capacity, employment; and such general information on prices, wages and other relevant indices as countries deem relevant (pages 19~26)

Austria, Brazil, Canada, Colombia, EEC and member States, Finland, Hong Kong, India, Indonesia, Israel, Korea, Japan, Macao, Malaysia, Sweden, Switzerland, United States.

PART B. Expansion and re-organization of the industry, and development of particular sectors (pages 27-35)

1. Government and other plans for the expansion of the textiles and clothing industry (pages 27~30)

Brazil, Colombia, Ireland, Hong Kong, India, Indonesia, Israel, Korea, Malaysia, Turkey.

2. Any government schemes adopted or contemplated for re-organization, modernization or diversification of the industry: an assessment of their effect (pages 30-33)

Egypt, India, Macao, Turkey.

3. Extent to which governments plan to develop particular sectors of the textiles and clothing industries (pages 33-35)

Brazil, Egypt, India, Malaysia, Peru, United States.

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PAET C. Adjustment measures and policies relevant to Article 1:U (pages 36-U8)

1. Autonomous adjustment processes (pages 36-38)

Austria, Canada, EEC and member States, Finland, Japan, Sweden, Switzerland.

2. Government measures (pages 38-^8)

(a) Description and purpose of adjustment measures and policies adopted by the governments to encourage business to (i) improve viability of current lines of production, (ii) move progressively into more viable lines of production, (iii) move out of the textile sector into other sectors of industry (pages 38-U6)

Austria, Canada, EEC and member States, Finland, Japan, Sweden, Switzerland, United States.

(b) An assessment of their effects (pages h6-kj)

EEC and member States, Finland, Japan, United States.

(c) Information on measures to deal with problems arising from closures, unemployment etc. (pages hf-kô)

Canada, EEC and member States, Finland, Sweden, United States.

PART D. Increasing access to the market (pages U9-51)

Austria, Canada, EEC, Finland, Japan, Sweden, Switzerland, United States.

It should be noted that in some cases countries have replied to certain of the questions put in the airgrams in a general manner which may cover more than one of the above-mentioned headings. In these cases the answer is not restated under different headings of this section, but a reference to the heading under which the answer is classified is given.

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Part A. STATUS OF THE INDUSTRY

1. The relevant questions are as follows:

GATT/AIR/1611:3

Participating countries may also wish to make a general statement about their national textile industries, including the pursuit of appropriate economic and social policies, in a manner consistent with national laws and systems, required by changes in the pattern of trade in textiles and in the comparative advantage of participating countries.

GATT/AIR/l6l2:lA and 2

1. With a view to enabling the Textiles Committee to discharge its functions under Article 10:2 of the Arrangement Regarding International Trade in Textiles, all participating countries therein are invited to furnish detailed and up-to-date information on the current state of production and trade in textile products including any measures to facilitate adjustment as follows:

(A) Recent developments in investment, productive capacity, employment etc. for textiles and clothing.

2. Participating countries may also wish to make a general statement about their national textile industries in the context of international trade on textiles, including such information on price wages and other indices as they deem relevant.

2. A summary of the replies is given below as follows:

(l) A general statement on national textile industries

Statements were made by the following countries:

Brazil

The Brazilian textile industry is the fourth largest in the world in production terms, after those of India, Japan and the United States. Brazilian textile exports are expected to be approximately $1 billion in 1980. The present rhythm of development in this sector is expected to continue.

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The growth of the industry in the last six years has been based essentially on the stability in the supply of cotton, which has been achieved thanks to careful planning and stockpile controls. While supplies of cotton may cause problems in the longer term, the short-term outlook is for a balance between domestic supply and demand to continue and for a surplus of around 20,000 tons in 1980.

A possible shortage of cotton could create certain problems in the rapidly growing synthetic fibre industry, which uses cotton for approximately 50 per cent of its raw material supplies. Brazil's balance of payments problems have also affected imports of textile machinery. This is reflected in a slowdown of new investment projects since 1973-7*+.

In general terms, the Brazilian textile industry is mainly oriented . towards the domestic market. Exports form a relatively small part of overall output. The outlook for the industry is generally reassuring.

Colombia

Textiles represent the largest industrial sector in terms of employment, and the second largest in relation to value added. Cotton textile manufacturing and knitwear are the two largest industries in the sector.

EEC

The aim of EEC policy in the field of textiles and clothing is to establish in the Community a highly viable textile and clothing industry capable of facing up to international competition and of providing employment on a large scale for the long term. To this end, internal Community policy operates through the structural adjustment measures set out below and reflected in the statements by the member States. On the external front the aim is to integrate the sector fully into international trade, in relation both to exports and imports, and to make Community aims understood and accepted by the EEC's trading partners, developed and developing alike.

India

Textiles constitute 19.6l per cent of Indian industrial production. The industry consists of large scale (mill), and medium scale (powerloom) and small scale (handloom) production units. Cotton textiles forms the major part of the industry. However, India follows a multi-fibre policy and output of man-made fibre yarn and fabrics has been increasing.

Since 1973, the textile industry in India has stagnated, although recently there has been a slight revival in demand. The average rate of growth of fabric production has not kept pace with population increase. Investment in machine capacity has also remained virtually static and capacity has remained almost stagnant in the last few years.

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Indonesia

Having become a member of the MFA as a low-cost producer, Indonesia as a new entrant in international textile trade has entered into negotiations with importing countries, bearing in mind Article 6 of the Arrangement.

Japan

The Japanese textiles industry has experienced long-term recession resulting from the rapidly changing circumstances after the oil crisis. Internally, it has been faced with stagnant growth in domestic demand and significant changes in consumers' tastes towards more diversified and higher quality products; externally it has lost its international competitiveness due to the rapid growth of textile industries in the neighbouring developing countries, as well as the sudden and sharp appreciation of the yen.

Korea

Textiles is a leading sector of the Korean economy and is likely to remain so for some time.

Peru

The textile industry has shown four main tendencies in the last six years: integration of production, modernization of equipment, development of production capacity and greater export orientation. These trends have been particularly marked in the cotton and wool sectors.

Switzerland

In 1979, the textile industry comprised 521 undertakings employing 36,682 wage-earners, i.e. 5.7 per cent of total undertakings and 5.^ per cent of total employment in the Swiss industry. The clothing industry comprised 657 undertakings employing a total of 28,969 wage-earners, i.e. 7.3 per cent of undertakings and U.3 per cent of employment for Swiss industry as a whole.

The Swiss textiles and clothing industry is concentrated in the eastern part of the country where the textiles industry accounts for 20 per cent of the total employment in this region in 1980. An important part of the clothing industry is also located in the Ticino Canton where nearly 22.5 per cent of all wage-earners working in this branch are employed.

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United States

Conditions in most sectors of the textile and apparel industries improved during 1979 and the first quarter of 1980. Notwithstanding the disparities between cost advances due to rising prices of the prime raw materials and relatively low increases in producer prices, the industry prospered in 1979- The industry entered 1980 in generally good condition with low and well managed inventories and well filled order books. Demand for cotton textiles continues buoyant and unfilled orders are high.

(2 ) Data on current state of production and trade in textile products

Austria

No information on production supplied.

Imports into Austria have increased from U8 per cent to 69 per cent of the domestic market for textiles, and from 30 to 59 per cent of the domestic market for clothing, during the period 1973~79.

Brazil

Total production of textile fibres in Brazil in 1978 was 86l*,000 tons. Industrial consumption of textile fibres in the same year was 878,000 tons. Averaged out over the three years 1976-78, production was approximately 2 per cent above mill consumption (production = 860,000 tons average, consumption = 839»^00 tons average). Compared with the period 1966-68, output had grown by 20 per cent.

Production of natural fibres, manufactures of which are included in the MFA (cotton and wool) has varied considerably from year to year. In 1978 the output of cotton was at approximately the same level as in 1963 (U88,000 tons); maximum output was achieved in 1969 at 721,000 tons. • Wool output in 1963 was 12,000 tons; maximum production in 1971 was 39»500 tons; in 1978 output was 26,900 tons.

Output of synthetic fibres has grown rapidly, particularly since 1972, reaching 218,200 tons, or 25 per cent of fibre output, in 1978. Output of artificial fibres has remained more or less static at between 1+5,000 and 55,000 tons.

In 1978, consumption of cotton exceeded domestic production for the first time.

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In the period 197*+~78 total exports of textiles, clothing and accessories from Brazil increased from 132,000 tons to 211,590 tons, or by 5.9 per cent. The most rapid increases were in cotton fibres (86 per cent growth), and in wool tops (l62 per cent increase).

In the same period, imports have fallen from 96,000 to 28,500 tons, or by some 70 per cent. Imports of textiles have declined in every year since 197*+. Fibre imports declined from 59,000 to 8,800 tons.

In value terms, the textile trade surplus of Brazil has improved from $236.7 million to $1+86.0 million in this period.

Canada

No information available.

Colombia

Over the period 1976-1979 the value of Colombian exports of textiles and clothing grew by 3*+ per cent, from $226 million to $303 million. In the same period, imports of MFA textiles grew by 165 per cent, from $1+9-8 million to $132.3 million. In the same period, imports of textile machinery increased from $38.2 million to $83.0 million. Overall, therefore, Colombia's trade surplus in respect of textiles was $176 million in 1976 and $171 million in 1979: remaining virtually static. The surplus, when textile machinery is taken into account, fell from $138 million in 1976 to $87.7 million in 1979- Textile machinery imports therefore offset more than half of Colombia's textile trade surplus in the most recent year.

Imports of textiles into Colombia have been considerably liberalized since the mid-1970's. Earlier prohibitions on textile imports have been abolished. This liberalization is contrasted with the restrictions placed on Colombian exports in importing markets.

EEC and member States

EEC

At present, textiles and clothing account for approximately 8 per cent of the Community's GNP.

Between 1973 and 1979, output declined, in terms of volume, by 3.5 per cent in the textile industry and by 1.7 per cent in the clothing industry (see table on page 101).

Calculated in current prices, productivity rose by 76 per cent in the textiles sector and by 83 per cent in the clothing sector between 1973 and 1978.

For data on trade, see Part IV.

COM.TEX/16 Page lk

Belgium

Calculated in current prices (page IOU), turnover in the textiles sector increased from BF 107,763 million in 1973 to BF 121,000 million in 1978 and to BF 133,855 million in 1979; in the clothing sector it rose from BF 32,966 million in 1973 to BF 38,000 million in 1978 and to BF 38,500 million in 1979- (in constant prices, the movement between 1973 and 1978 was from BF 107,763 million to BF 87,050 million, and from BF 32,996 million to BF 27,338 million, respectively; see page 105-)

Gross value added, calculated in current prices (page 111), fell in the textile sector from BF 3l+,51 million in 1973 to BF 33,08l million in 1978; in the clothing sector it rose from BF 18,12*+ million to BF 23,970 million over the same period. (in constant prices, the movement was from BF 3l+,5ll+ million to BF 23,799 million, and from BF 18,121+ million to BF 17,21+5 million, respectively; see page 112.)

Denmark

Calculated in current prices (page 10l+), turnover in the textiles sector increased from DKr 2,830 million in 1973 to DKr 3,273 million in 1978 and to DKr 3,666 million in 1979; in the clothing sector it rose from DKr 1,501 million in 1973 to DKr 1,7^6 million in 1978 and to DKr 1,938 million in 1979- (in constant prices, the movement between 1973 and 1978 was from DKr 2,830 million to DKr 1,981+ million, and from DKr 1,501 million to DKr 1.058 million, respectively.)

Gross value added, calculated in current prices (page 111), increased from DKr 1,316 million in 1973 to DKr l,68l million in 1978 aid to DKr 1,7^8 million in 1979 in the textiles sector; in the clothing sector, it rose from DKr 717 million in 1973 to DKr 925 million in 1978 and to DKr 9+1+ million in 1979. (in constant prices, the movement between 1973 and 1978 was from DKr 1,316 million to DKr 1,019 million, and from DKr 717 million to DKr 561 million, respectively.)

France

Between 1973 and 1978, turnover in enterprises of six employees or more, calculated in current prices (page 10l+), rose from F 39,712 million to F 53,1+62 million in the textiles industry,and from F l6,&J2 million to F 27,598 million in the clothing industry. (in constant prices, the movement was from F 39,712 million to F 33,001 million, and from F 16,672 million to F 17,036 million, respectively.)

During the period 1973 to 1977, gross value added in such enterprises, calculated at current prices (page 111), rose from F 15,203 million to F 18,01+1+ million in the textiles sector, and from F 6,929 million to F 10,755 million in the clothing sector. (In constant prices, the movement was from F 15,203 million to F 12,889 million, and from F 6,929 million to F 7,682 million, respectively.)

Federal Republic of Germany

Turnover, calculated in current prices (page 10l+), increased from DM 28,790 million in 1973 to DM 31,01+2 million in 1978 and to DM 32,279 million in 1979 in the textiles sector; from DM 17,971+ million in 1973 to DM 19,337 million in 1978 and to DM 19,959 million in 1979. (in constant prices, the movement between 1973 and 1978 was from DM 28,790 million to DM 26,307 million, and from DM 17,971+ million to DM l6,387 million, respectively.)

Between 1973 and 1977, gross value added, calculated in current prices (page 111), rose from DM 9,620 million to DM 10,71+0 million in the textiles sector, and from DM 7,050 million to DM 7,680 million in the clothing sector. (in constant prices, the movement was from DM 9,620 million to DM 9,589 million and from DM 7,050 million to DM 6,857 million, respectively.)

Ireland

Turnover, calculated in current prices (page 10l+), rose from £137 million in 1973 to £300 million in 1978 and to £320 million in 1979 in the textiles sector; in the clothing sector it rose from £59 million in 1973 to £101+ million in 1978 and to £120 million in 1979- (in constant prices, the movement between 1973 and 1978 was from £137 million to £150 million, and from £59 million to £52 million, respectively.)

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Gross value added, calculated in current prices (page 111), rose from £55 million in 1973 to £120 million in 1978 and to £128 million in 1979 in the textiles sector, and from £29 million in 1973 to £52 million in 1978 and to £60 million in 1979 in the clothing sector, (in constant prices, the movement between 1973 and 1978 was from £55 million to £60 million, and from £29 million to £26 million, respectively.)

Italy

Calculated in current prices (page IOU), turnover in the textiles sector rose from Lit 3,699 billion in 1973 to Lit 8,78l billion in 1978, and to Lit 10,782 billion in 1979; in the clothing sector it rose from Lit 1,317 billion in 1973 to Lit 3,08U billion in 1978 and to Lit 1+,100 billion in 1979. (in constant prices, the movement between 1973 and 1978 was from Lit 3,699 billion to Lit 3,903 billion and from Lit 1,317 billion to Lit 1,371 billion, respectively.)

Calculated in current prices (page 111), gross value added increased from Lit 1,1*79 billion in 1973 to Lit 3,198 billion in 1978 and to Lit 1*,158 billion in 1979 for textiles and from Lit 51*1* billion in 1973 to Lit 1,199 billion in 1978 and to Lit 1,1*01* billion in 1979 for the clothing sector. (in constant prices, the movement between 1973 and 1978 was from Lit 1,1*79 billion to Lit 1,1*21 billion and from Lit 5l*l* billion to Lit 533 billion, respectively.)

Luxembourg

The sector forms a small part of the total economy. The principal markets are the home market, Belgium and France.

In the face of outside competition, production has been falling since 1973. The production index fell by 7.5 per cent in 1976 and by 13.8 per cent in 1977.

Netherlands

Calculated in current prices (page 10l+), turnover moved from f. l+,390 million in 1973 to f. l+,3l+8 million in 1978 and to f. l+,36l million in 1979 in the textiles sector; in the clothing sector, it moved from f. 2,210 million in 1973 to f. 1,882 million in 1978 and to f. 1,905 million in 1979- (in constant prices, the movement between 1973 and 1978 was from f. 1*,390 million to f. 2,958 million and from f. 2,210 million to f. 1,280 million, respectively.)

Calculated in current prices (page 111), gross value added declined, between 1973 and 1978, from f. 1,355 million to f. 1,320 million in the textiles sector and from f. 802 million to f. 67I* million in the clothing sector. (in constant prices, the movement was from f. 1,355 million to f. 898 million and from f. 802 million to f. 1+59 million respectively. )

United Kingdom

Calculated in current prices (page 10l*), turnover increased between 1973 and 1978 from £3,031 million in 1973 to £5,350 million in the textiles sector and from £1,120 million to £2,310 million in the clothing sector. (in constant prices the movement was from £3,031 million to £2,512 million and from £1,120 million to £1,085 million, respectively.)

Calculated in current prices (page 111), gross value added increased over the same period from £l,ll*7 million to £1,980 million in the textiles sector and from £l+91 million to £970 million in the clothing sector. (in constant prices, the movement was from £l,ll+7 million to £929 million and from £l*91 million to £l*55 million, respectively.)

Egypt


Finland

The textiles and clothing industries have declined relatively to the overall industrial sector. The share of textile and clothing industries in total gross value of industrial output fell from 6.5 per cent to 1*.5 per cent between 1970 and 1978; in terms of added value, the industries' share fell from 7-5 to 5-7 per cent. Value added in textile manufacturing increased by 7 per cent in current prices between 1977 and 1978: that in clothing by 6.1+ per cent.

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Hong Kong

Between 1977 and 1979 yarn production rose from 215 million kgs. to 239 million kgs., while production of piecegoods rose from 778 million square yards to 84ti million square yards.

Domestic exports of clothing rose from HK$13,909 million in 1977 to HK$20,131 million in 1979- They constitute 39-7 per cent of total domestic exports in 1977 and 3b per cent in 1979-

India

In 1978-795 provisional figures show that yarn production was 1,272 million kgs; an increase of 14 per cent over the figure for 197^~75^ Production of cotton yarn had fallen hy 6 per cent in the period; that bf man-made fibre yarn had increased to 36u per cent of the level in 1974-75-

The average annual rate of growth of fabrics production over the same period was about 1.5 per cent, and had not thus kept pace with population growth. Total cloth output in 1978-79 at 9,409 million metres was 10.8 per cent above the level in 1974-75 ; output of cotton cloth had declined while blended and man-made fabric production had increased.

In the nine years 1971-72 to 1979~80, Indian exports of textiles have grown fivefold in value. Since 1974-75 the value of exports has more than doubled. The share of textiles in total Indian exports has varied between 11.6 and 16.3 per cent during the nine-year period, accounting for 15 per cent in 1979-80. In quantity terms, however, exports have stagnated. This is ascribed by the government in large measure to protectionist measures taken by importing countries.

Clothing manufacturing is concentrated in the cottage sector. Output of garments for export has grown rapidly. The value of garment exports has risen threefold since 191^, to reach 3,430 million rupees in 1979-

Garment exports are concentrated on the markets of EEC, United States and Japan, and on a few popular lines (shirts, blouses, dresses, skirts, trousers). The rapid growth in exports noted above is expected by the government to cease mainly because of the quotas on such products imposed by the main markets.

The limitations placed on Indian exports of textiles by developed markets are contrasted with the recent liberalization of Indian import policy on synthetic fibre and textile machinery imported from these same countries.

Indonesia

Production at the end of the Second Five-Year Plan in 1979 stood as follows: synthetic and filament fibres - 68,075 tons; cotton yarn and blended yarn - 837,212 bales; textiles - 1,576 million metres; garments -14.4 million dozen. Exports in 1979 stood at 37-5 million metres.

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Israel

The real increase in output in textiles in Israel "between 1978 and 1979 was 3.7 per cent. The corresponding figure for apparel was 1.1 per cent. This compares with a figure for all industry (excluding diamonds) of 6.8 per cent.

Israel's import policy is liberal as a whole. Imports of textiles in 1978 amounted to some $180 million.

Japan

The production of the textile industries decreased sharply for the two consecutive years after the peak year of 1973. Although the production registered moderate growth in recent years, it still remains far below the 1973 level.

Imports increased sharply in 1978 to a level of 71.3 per cent above the previous year in volume. The growth continued in 1979, with an increase of 23.7 per cent. On the other hand, exports declined substantially for the two consecutive years, registering a decrease of 15 per cent in 1978 and l6.2 per cent in 1979 in volume.

Korea

Between 1970 and 1978 the value of textile output rose from $715.3 million to $6,667.3 million. Exports grew from $390 million to $3,980 million in the same period.

Macao

Total gross value of production in 1979 stood at $232.6 million. Gross value added was $60.3 million.

Malaysia

Production of textiles, particularly man-made fibre yarns and fabrics, rose between 1976 and 1978. Production of man-made fibre yarns rose by 76 per cent, that of natural fibre yarns by 7 per cent, and that of fabrics by 19 per cent. Production of clothing however, dropped by 2 per cent, though there was a rise in production of knitted socks and stockings by 72 per cent.

No data are given on trade.

COM. TEX/ 16

Peru

The domestic market has declined in recent years. Production of textiles is therefore increasingly geared to exports, particularly in the cotton sector.

Sweden

The progressive decline in production within the Swedish textile and clothing; industry became more pronounced after a marked fall in 1975. Between 1976 and 1977, production in the textile and clothing sector was reduced by 16 per cent and 21 per cent, respectively. During 1977-79 production decreased by 8 per cent in the textile sector and by 13 per cent in the clothing sector.

No data are given on trade.

Switzerland

The share of the textile and clothing industry in Switzerland's total industrial output (excluding construction and energy) remained around 8.5 per cent, over the period from 1970 to 1979. Production in the textile industry increased by 9 per cent while production in the clothing industry decreased by 2.5 per cent compared to an increase of 2.5 per cent in the output of the industry in general.

The relative importance of textile and clothing products in foreign trade has declined over the past decade to 7-3 per cent of the total exports, and 9-6 per cent of the total imports in 1979. However, over the same period, the textile sector has become more export-oriented owing to a greater concentration and specialization in the manufacture of high-quality products in the textile industries and at present about 60 per cent of Switzerland's total textile output is exported. A similar trend can be discerned in the clothing sector although the nominal trade deficit in this sector almost trebled over the past decade reaching Sw F 1,9^2 million in 1979-

Turkey

Production of yarn in Turkey in 1978 was 398,000 tons of which 335,000 cotton yarn. Planned production in 1980 is for U78,000 tons, an increase of 23 per cent. Production of fabrics in 1978 was l,Ul8 million metres, of which 1,363 million metres cotton fabrics. Planned production in 1980 is for 1,600 million metres, an increase of 12.8 per cent. Production of carpets, which stood at 6.6 million square metres in 1978, is to increase to 7-6 million square metres (an increase of 16 per cent) in 1980. Clothing output is planned to grow from 66,136 tons to 73,300 tons in 1980, an increase of 10.8 per cent. Production capacity is to move increasingly into high added-value lines such as carpets and clothing.

COM. TEX/16

United States

The Federal Reserve Board production index for textile mill products and apparel industries in January 1980 were up U.7 per cent and down 2.6 per cent, respectively, from a year earlier. Cotton, wool and man-made fibre broadwoven fabric production amounted to 10.7 billion linear yards in 1978, slightly more than in 1977- Third quarter 1979 production was up 2.6 per cent from the same period in 1978.

Both the textiles and apparel industries achieved improved import-export balances in 1979. Exports by both industries expanded sharply in 1979 on a value basis while imports were down slightly for textiles and up only slightly for apparel. The import trade deficit on cotton, wool and man-made fibre products during 1979 amounted to $2,983 million, down by 25 per cent from a year earlier. The value of exports of cotton, wool and man-made fibre products amounted to $3,32U million during 1979, up by kk per cent from 1978. The value of imports of cotton, wool and man-made fibre products during 1979 amounted to $6,307 million, virtually unchanged from a year earlier. In quantitative terms, imports of cotton, wool and man-made textile and apparel products during 1979 totalled h,6k8 million equivalent square yards, 19 per cent less than a year earlier. Over this period, the uncertainties of the economic situation coupled with large interest rates, have led to a larger percentage of buyers' commitments to be given to domestic suppliers.

(3) Information on investment, productive capacity, employment; and such general information on prices, wages and other relevant indices as participating countries deem relevant

Austria

Employment in the Austrian textile industry has fallen from 61+,000 to 1+7,000 between 1973 and 1979; and in the clothing industry, from 39,000 to 33,000 in the same period.

The total number of textile factories declined from 710 to 578, and clothing factories from 6l7 to 53 + in the period 1973_79.

Provisional data for 1979 show that investment in textiles in Austria totalled S 1,023 million and in clothing, S 251 million.

Brazil

Fixed investment in the Brazilian textile industry (counted in terms of projects approved by the Industrial Development Council) peaked in 1973/71+. Largest investments were in the field of man-made fibres, since 1971+, and new investment has fallen off to a share (in current price terms) of 3 per cent of the value in 1973/7*+.

COM.TEX/ lé

Employment in textiles (excluding made-up articles and clothing) has not grown. In the period 1962-68 average employment was some 3^0,000. In I969-7O employment fell to under 300,000, recovering to a peak of 371,000 in 1973. In 1975» the latest year for which statistics were supplied, employment in the section was 356,000.

Canada

Total number of establishments declined from 998 to 913 in the textiles industry between 1971 and 1977. A large number of those that closed down were low-end cotton fabric manufacturers. During the same period the number of establishments in the clothing industry with less than 50 employees declined from 1,590 to 1,27*+, and those with more than 50 employees declined from 57*+ to 563.

During the period 1971 to 1977 employment in the textiles industry declined from 77,200 to 72,700 and in the clothing industry from 118,500 to 111,500.

Colombia

Total numbers employed in the textile sector increased by 12.7 per cent over the period 1970-197^. Thereafter the numbers employed fell back until in 1978 the total employment stood at 3 per cent below its 1970 level.

Textile prices have increased less rapidly than the pace of general price inflation in Colombia. The rate of general price increase over the period 197^-1978 was 23.1 per cent per annum; the rate of inflation for items entering into workers' consumption was 23.6 per cent; the corresponding rate for textiles was lU.6 per cent.

EEC

Investment in fixed assets remained unchanged in the textile sector during the period 1973 to 1978 and rose by about 33 per cent in the clothing sector. Per person employed, investment rose by 30 per cent in the textile sector and by 7*+ per cent in the clothing sector.

The number of enterprises fell by about 4,200 between 1973 and 1978.

Employment fell by 1+22,000 in the textiles sector and by 278,000 in the clothing sector between 1973 and 1978.

Labour costs rose by 43 per cent in the textiles sector and by k6 per cent in the clothing sector between 1973 and 1978.

COM.TEX/16

Belgium

Investment in fixed assets fell from FB l+,253 million in 1973 to FB 3,002 million in 1978 in the textiles sector, and from FB 767 million to FB 739 million in the clothing sector. The number of enterprises with twenty or more employees fell from 1,395 to 1,052 in the textiles sector and from 1,195 to 887 in the clothing sector.

Between 1973 and 1979 employment in enterprises employing more than twenty, fell from 107,061+ to 67,157 in the textiles sector and from 66,665 to 1+2,136 in the clothing sector. Labour costs rose between 1973 and 1978 from FB 18,376 million to FB 20,61+5 million in the textiles sector, and from FB 10,793 million to FB 11,998 million in the clothing sector.

Denmark

Investment in fixed assets declined from DKr 150 million in 1973 to DKr 103 million in 1979 in the textiles sector compared to an increase from DKr 36 million to DKr 51 million in the clothing sector. On the other hand, the number of enterprises with twenty or more employees fell in both sectors between 1973 and 1978, from 236 to 203 in the textiles sector and from 236 to 201 in the clothing sector.

Over the period 1973 to 1979, the number of persons occupied in enterprises employing twenty or more fell by 38 per cent from 16,7^ to 10,1+00 in the textiles sector, and by 61+ per cent from 13,758 to l+,900 in the clothing sector, whereas labour costs rose from DKr 675 million to DKr 992 million in the textiles sector, and from DKr 1+86 million to DKr 7ll+ million in the clothing sector.

France

Investment in the textiles sector between 197^ and 1978 fell from F l,5l+5 million (enterprises of ten employees or more) to F 1,525 million and rose in the clothing sector from F 3ll+ million (employing ten persons or more) to F 1+93 million.

The number of enterprises over the same period fell from 3,796 (employing ten persons or more) to 3,197 in the textiles sector. The relevant figures in the clothing sector are l+,080 (estimate) and 3,660.

Between 1971+ and 1978, total employment in firms employing ten persons or more fell from 1+08,600 to 328,600 in textiles, and from 313,600 to 271,100 in clothing. The total wage bill rose from F 8,332 million to F 11,200 million (estimated) in textiles and from F l+,l+29 million to F 7,130 million (estimated) in clothing in the same period.

COM.TEX/16


Investment in fixed assets in the textiles sector fell 'between 1973 and 1978 from DM 1,310 million to DM 1,120 million (estimate) and in the clothing sector from DM 332 million to DM 320 million (estimate). The number of enterprises employing more than twenty employees fell in the textiles sector from 2,857 in 1973 to 2,309 in 1979, and in the clothing sector from l+,308 to 3,296.

Employment fell from 1+32,221 to 310,622 between 1973 and 1979 in the textiles sector and from 363,81+1 to 256,718 in the clothing sector. Labour costs in enterprises of twenty or more employees rose from DM 6,853 million in 1973 to DM 7,1+86 million in 1979 in the textiles sector. The relevant figures in the clothing sector are DM l+,l+08 million and DM i+ ,9l8 million. The index of productivity per man hour (1970 = 100) rose from 126.3 in 1973 to 17U.0 in 1978 in the textile sector, and from 111.2 to 133.2 in the clothing sector.

Ireland

Investment in fixed assets between 1973 and 1979 rose from £5 million (enterprises employing twenty or more) to £53 million, and from £2 million (enterprises employing twenty or more) to £l+ million in the textiles and clothing sectors respectively. Over the same period the number of enterprises in the textiles sector fell from 2U6 to 195, and from 510 to 368 in the clothing sector.

Employment fell from 25,712 to 21,1+55 in the textiles sector, and from l6,6l6 to 13,05*+ in the clothing sector. Labour costs however, rose from £30 million to £71 million in the textiles sector and from £l6 million to £38 million in the clothing sector.

Italy

Over the period 1973 to 1979, investment in fixed assets rose from Lit 261+ billion to Lit 557 billion in the textiles sector, and from Lit 38 billion to Lit 65 billion in the clothing sector. However, enterprises with twenty or more employees fell from 3,1+93 to 3,150 and from 1,876 to 1,610 respectively, in these two sectors.

Between 1973 and 1979» total number of persons occupied in enterprises employing twenty or more fell from 379,755 to 308,700 in the textiles sector, and from 187,1+22 to 161,850 in the clothing sector, whereas labour costs rose from Lit 1,072 billion to Lit 2,81+2 billion in the textiles sector, and from Lit 1+31 billion to Lit 1,235 billion in the clothing sector, over the same period.

Luxembourg


COM.TEX/16

Netherlands

Investment in fixed assets between 1973 and 1978 fell from f. 201 million (enterprises employing ten or more) to f. 150 million in the textiles sector, and increased from f. 33 million (enterprises employing ten or more) to f. 1+8 million in the clothing sector. Over the same period the number of enterprises employing ten or more in the textiles sector increased from 3l6 to 329, and fell from 1+1+6 to 3 9 in the clothing sector.

Employment in enterprises with ten or more persons fell by 1+0 per cent from 58,700 to 35,200 in the textiles sector, and by 52 per cent from U0,900 to 19,800 in the clothing sector. Labour costs, however, rose from f. 881+ million in 1973 to f. 962 million in 1978 in the textiles sector and fell from f. 585 million to f. 50l+ million in the clothing sector.

United Kingdom

Investment in fixed assets increased from £159 million in 1973 to £228 million in 1978 and from £28 million to £65 million in the textiles and clothing sectors, respectively. On the other hand, the number of enterprises with twenty or more employees fell in both sectors between 1973 and 1978, from 2,1+08 to 2,150 in the textiles sector and from 2,61+7 to 2,1+00 in the clothing sector.

Over the period 1973 to 1978, employment fell from 1+86,700 to 1+05,800 in the textiles sector, and from 313,600 to 278,100 in the clothing sector, whereas labour costs almost doubled from £715 million to £1,350 million in the textiles sector, and from £337 million to £676 million in the clothing sector. Egypt


Finland

Investment and employment

Investment in new textile plant and machinery was abnormally low in the years 1975, 1976 and 1977, reflecting the overall economic recession in those years. Consequently the improving economic situation in 1978 and 1979 was accompanied by increasing investment activity. The investment figures for 1973 to 1978 were as follows:

(in million markaas at current prices)

T e x t i l e s

Clothing

1973

138

60

19 lh

189 9h

1975

132

76

1976

101

65

1977

86

7>+

1978

163

99

The textile and clothing industries' share of total industrial employment fell from 12.5 per cent to 10.1+ p e r cent between 1970 and 1978.

Hong Kong

The numberof es tab l i shment in the sp inn ing s e c t o r dec l ined from 289 in 1977 t o 273 in 1979, e n t a i l i n g a f a l l in t h e number of sp ind les i n s t a l l e d from 893,000 t o 866,000. During the same per iod t h e number of i n s t a l l e d looms increased from 30,000 t o 32,000, and the number of e s t ab l i shmen t s in the weaving s e c t o r rose from 61+1+ t o 739. In t h e c l o t h i n g s e c t o r t h e number of e s t ab l i shmen t s rose from 8,01+7 t o 8,796. In o ther t e x t i l e s e c t o r s t h e number of e s t ab l i shmen t s f e l l from 2,788 t o 2,61+5.

COM.TEX/16 Page 2k

Between 1977 and 1979 employment in the spinning sector fell from 23,130 to 21,08l, while in the weaving and clothing sectors rose from 29,210 to 32,832 and from 239,058 to 260,615 respectively. Numbers employed in other textile sectors fell from 50,060 to 1*6,912. As a percentage of total work force, employment in the spinning, weaving, clothing and other textile sectors fell from 3.1 to 2.U, from 3-9 to 3.8, from 31.7 to 29.9 and from 6.6 to 5.4.

The index. (July 1973-June 1971* = 100 ) of average daily wages in the textiles, garments and glove sectors moved as follows:

textiles - 128 in March 1977 to 185 in September 1979;

garments - 129 in March 1977 to 182 in September 1979;

gloves - 132 in March 1977 to 166 in September 1979-

India

Machine capacity installed has been almost stagnant. While the number of spindle.'S installed has risen by some k per cent between 1976 and 1979, the number of looms has fallen slightly. The mill sector represents a minor proportion of India's output capacity; only 21 per cent of looms installed overall are automatic looms. The largest proportion of production in Indian textiles comes from the handloom and cotton/artsilk powerloom sectors. The cotton/artsilk powerloom sector is based on small enterprises, while handloom textile manufacturing is the most important cottage industry in India, employing over ten million people directly and a similar number in related services. Khadi cloth, spun by hand and woven on handlooms, forms a small sub-sector of the handloom industry. Wool textiles are a marginal textile activity.

Indonesia

Employment is estimated at 350,000 employed in the machine/mechanical sector and about 350,000 in the hand-operated sector (including batik).

Israel

Gross investment in textiles increased by 6.1 per cent between 1978 and 1979: in clothing, by 10 per cent. The growth of all industrial investment in the same period (excluding diamonds) was 5.9 per cent. The number of employees in textiles was 23,900 in 1979; in clothing, 33,100.

Korea

In 1978 the number employed in the textile industry stood at 725,000 or 23.9 per cent of total industrial employment of 3 million.

COM.TEX/16

Japan

About 20 per cent of surplus facilities have been disposed of in all sectors of the textile industry. Furthermore, bankruptcies registered a record figure of 1,328 in 1977, involving a total amount of debt of ¥ 390 billion, and are continuing to increase in number.

There has been a continuing decline in the textiles industry employment, amounting to 300,000 persons or 16 per cent over the period 1970 to 1979.

Macao

In 1978 a total of 7 8 enterprises, of which 653 in the clothing sector, were registered. Total employment was some 2l+,000.

Investment in 1978 was some $2.U million in the textiles sector and some $U.l million in clothing.

Malaysia

Investment in the textiles and clothing sector rose from M$570 million in 1976 to M$8l+1 million in 1978. During the period "l'976'"to 1978 employment rose by 55 per cent from 33,092 to 51,^1.

Peru

No information given.

Sweden

The number of employees within the Swedish textile and clothing industry fell from llU,000 in 1950 and 67,500 in 1970 to around 38,000 in 1979.

Switzerland

Production capacity has declined appreciably in the textile sector in the period 1977 to 1979, the largest reduction being in respect of looms by approximately 15 per cent. Thirty-five undertakings of all branches of the textiles industry ceased production in the same period.

Over the past decade, there has been a decline in the level of employment by 30 per cent in the textile industry, and by 3^ per cent in the clothing industry. Whereas these two sectors used to account for 12 to 13 per cent of total employment in the Swiss industry in 1970 their share has now fallen to less than 10 per cent. In this respect, a reduction of 3,6hO wage-earners in the textiles industry between 1977 and 1979 accounted for 90 per cent of the reduction of employment in Swiss industry as a whole.

COM. TEX/16

United States

Capital expenditures for new plant and equipment for the United States textile industry in 1979 were US$1.06 billion, 2 per cent higher than the amount spent in 1978.

The capacity of the industry during the fourth quarter of 1979 was 138.1 (1967 = 100) compared with 136.6 a year earlier. It operated at 89.5 per cent of the higher last quarter 1979 capacity compared with a 87.5 utilization rate of the lower capacity a year earlier.

Total employment in the textile and apparel industries was 2,208,000, seasonally adjusted, in March 1980, down 0.6 per cent from a year earlier. Average unemployment increased in the textiles industries and marginally decreased in apparel industries in the first three months of 1980, compared with the same period a year earlier. Average weekly hours worked increased to 1+1.2 hours for textiles and 35-8 hours for apparel in February 1980.

Producer's price index for selected textile products was 121.1 (1975 = 100) in March 1980, up 8.5 per cent from March 1979- The producers' price index for apparel products was 168.3 (1967 = 100) in March 1980, up 6.5 per cent from a year earlier. These increases were on a smaller scale compared with increases of the indexes of the industrial commodities in general. The consumer price index for apparel products in February 1980 was l6l.8 (1967 = 100) up 5.0 per cent from a year earlier.

Hourly earnings for production workers averaged US$U.90 for the textile industry and US$1+.1+1+ for the apparel industry in January 1980. There was an increase of 8.1+ per cent and 6.5 per cent for textile and apparel industry respectively, compared to a year earlier. However, the average hourly earnings for production workers in the textiles and apparel industries remained below those of manufacturing industry in general.

Other relevant indices which may be noted are that: Sales of textile mill products in the first three quarters of 1979 were US$30.6 billion, 11.5 per cent up from the same period in 1978. Corporate profits in the textiles industry in the third quarter of 1979 as a percentage of sales and of equity were up by 19 per cent and 18 per cent respectively from 1978 averages. Total shipments of textile products during February 1980 amounted to US$l+,292 million, 19.5 per cent up from a year earlier. Total inventories of textile products at the end of February 1980 totalled US$5,935 million, 3.6 per cent up from a year earlier. Inventories of cotton, wool and man-made fibre grey goods at the weaving mill level, at the end of November 1979 totalled 876 million linear yards, unchanged from a year earlier. Unfilled orders for cotton and man-made fibre grey goods at the weaving mill level totalled 2.9 billion linear yards at the end of 1979, also unchanged from a year earlier.

COM.TEX/16

Part B. EXPANSION AND RE-ORGANIZATION OF THE INDUSTRY AND DEVELOPMENT OF PARTICULAR SECTORS

1. The relevant question is as follows:

GATT/AIR/l6l2:lB

1 (B) Government and other plans for the expansion of the textile and clothing industry, including aids for the realization of such plans. Any government schemes adopted or contemplated for re-organization, modernization or diversification of the industry and an assessment of their effect. Extent to which governments plan to develop particular sectors of the textile and clothing industries:

- for supply to traditional export markets

- for supply to new export markets

- for domestic consumption

2. A summary of the replies is given below as follows :

(l) Government and other plans for the expansion of the textile and clothing industry

Austria

Not applicable: relevant information in Part C.

Brazil

Export subsidies given through tax exemptions have been eliminated under a unilateral decision of the Brazilian Government taken after the earlier GATT commitment under the MTNs to phase-out such subsidies over time. No special policy exists for the textile industry as such. The Brazilian textile industry, however, benefits from general industrial development measures taken by the Government as well as regional development schemes aimed at the advancement of the most backward regions.

Canada

Not applicable; relevant information in Part C.

Colombia

The Government of Colombia applies measures aimed at promoting exports of its domestic industries. The textiles industry benefits from such measures.

COM.TEX/16

The Export Promotion Fund (PROEXPO) has established financing programmes designed to modernize equipment and promote the production and export of articles with an increased added-value content. In addition, an insurance scheme gives assistance in this field to exporters, inter alia, by covering risks of insolvency of foreign importers. Moreover, PROEXPO sponsors and finances market research programmes for textile and clothing products and collaborates in the acquisition of know-how.

EEC

Belgium, Denmark, France, Federal Republic of Germany, Italy, Luxembourg, United Kingdom.

Not applicable, relevant information in Part C.

Ireland

Overseas companies were attracted to the country to establish projects in those lines of production which were considered as having a viable future. A large element of new investment in the textiles sector was devoted to the establishment of a man-made fibre industry, which is capital-intensive, and using the most modern machinery.

Egvpt

See 2 below.

Finland


Hong-Kong

Other than providing infra-structural and other essential facilities for the development of industry and trade generally, the Government, which pursues a policy of free enterprise and free trade, does not have any plans to aid the expansion or re-organization of the textiles and clothing industries.

India

Government objectives are to make larger quantities of quality cloth available at reasonable prices to the masses; to give priority to employment-orientated growth through the decentralized handloom and khadi sectors ; and to bring about a balance between cotton and non-cotton fibres. In regard to the woollen industry, the Government has delicensed the expansion of shoddy /woollen/worsted spindleage. Raw materials like raw wool, shoddy, woollen rags, etc. can now be imported under the Open General Licensing System.

COM.TEX/16

Indonesia

The general policy of government is towards a more equitable distribution of the gains of economic growth. The textiles industry is directed towards integration of existing units and spreading of location to the outer islands.

Incentives for investment are formulated in the "Priority Scale List", with variable tax incentives and credit facilities.

The third Five-Year Plan has for its target that production should increase by 198U to the levels given below:

synthetic and filament fibres: 157,500 tons cotton yarn and blended yarn: 1,5 +0,000 bales textiles 2,500 million metres garments 23,000,000 dozen

The exports are planned to reach the equivalent of 280 million metres by 198U. "Bonded areas" or export processing zones are envisaged to facilitate exports.

Israel

No official government planning vis-à-vis the textile industry exists, and there is no special government policy concerning encouragement of this sector applicable.

Japan

Not applicable: relevant information in Part G.

Korea

In 1967 the Provisional Law for the Adjustment of Textile Facilities was passed, aimed at helping to achieve balanced development and international competitiveness through orderly adjustment and the replacement of outworn equipment.

The Law for Promoting the Modernization of the Textile Industry, passed in 1979, establishes a special fund for the textile industry, encourages the formation of industrial inter-relationships and specialization among textile industries, and aims to promote new technological development and training of manpower. The emphasis is to be placed on improvements in the quality of textile products rather than on quantitative expansion.

No special tax or financial concessions are given to the textile industry.

COM.TEX/16

Macao

See 2 below.

Malaysia

Selected sections are still being promoted; these include projects for the production of synthetic woven filament fabrics and high quality knitted fabrics and garments.

Peru


Sweden


Switzerland


Turkey

In order to reach the production targets set out in the Fourth Five-Year Development Plan (1979-1983) and annual programmes, assistance will be provided to the textile sector to renovate, improve and enlarge the established capacity both in the private and public sectors, as well as creating new capacities on those production lines with the highest value added (e.g. carpets and clothing). In the public sector, where traditionally textile products have a prominent place, seven new production units of ready-wear apparel are expected to enter into production in 1980.

United States

Not applicable: see Part B:3 and Part C.

(2) Any government schemes adopted or contemplated for re-organization, modernization or diversification of the industry: an assessment of their effect

Austria

Not applicable : see Part C.

Brazil

See Part B:l.

COM.TEX/16

Canada


Colombia




Egvpjt

Government and other plans may be summarized as:

(i) Semi-governmental bodies provide testing facilities, and technical consultants to help develop new products and processes.

(ii) Moves to diversify lines of production by developing the garment industry.

(iii) Loans from international bodies and government credit guarantees are made available for modernization and replacement plans.

(iv) The Egyptian Act. No. U3, 197^, n a s resulted in joint ventures with foreign investment particularly in the knitting and ready-made garment sectors. The above projects need the approval of the General Organization for Arab and Foreign Investment and Free Zones.

Increased and diversified production has led to a need to assure a regular supply of raw cotton, yarns and fabrics to meet the requirements of the processing sectors of the industry.

Finland


Hong Kong

See ^art B:L.

COM. TEX/ID

India

The measures undertaken to achieve the objectives mentioned in Part B:l include Government assistance to the expansion of the handloom sector, while the decentralized powerloom sector is to be limited to present levels of output; regulation of synthetic fibre used to safeguard the interests of cotton growers; Government permission for unrestricted expansion of spinning capacity up to plant size of 50,000 spindles in cotton and man-made fibres; free import of basic raw materials under open general licence; import permission for high-technology machinery for the mill sector; soft loans for rehabilitation and modernization of textile mills ; takeovers of uneconomic mills by the National Textile Corporation for reorganization and to stabilize employment; expansion of woollen industry through delicensing of operations.

Indonesia

See Part B:l.

Israel

See Part B:l.

Japan


Korea

See Part B:l.

Macao

Rationalization measures taken include controls on investment permits which are related to the number of existing establishments, the value of investments, and the prospective quality of production; special concessions for basic industries in the spinning and weaving sectors for land acquisition; financial credits for the improvement of production quality; and the establishment of an Industrial and Commercial Development Fund for the diversification and reorganization of the industry.

Malaysia

See Part B:l.

Peru


Sweden


COM.TEX/16

Switzerland


Turkey

The Government's main encouragement measures presently implemented vithin the textiles sector include facilities for payment of customs duties on investment goods, reduction in income tax base and promoting financial assistance to obtain loans from commercial banks.

In connexion with the modernization and re-organization efforts within the sector towards increasing its productivity and its competitiveness in the world market, the World Bank has contributed credit facilities which would be used to overcome the bottlenecks encountered in the sector due to foreign exchange shortages.

United States

Not applicable: see Part B :3 and Part C.

(3) Extent to which governments plan to develop particular sectors of the textile and clothing industries:

- for supply to traditional export markets

- for supply to new export markets

- for domestic consumption

Austria


Brazil

See Part B :1. The development of the Brazilian textile industry stems mainly from the growth of domestic demand: exports constitute a relatively minor share of production.

Canada


Colombia


COM.TEX/16 Page 3k



More attention is being given to the development of exports,

Finland


Hong Kong

See Part B;l.

India

Emphasis in the development of the textile industry is placed on domestic consumption. Export growth to traditional developed markets is stagnant, largely because of protectionist measures taken by importing countries,

Indonesia

See Part Bil.

Israel

See Part B:l,

Japan

Not applicable; relevant information in Part C.

Korea

See Part B:l.

Macao


Malaysia

The sectors encouraged are basically to cater to non-quota restricted countries. Production of synthetic woven filament fabrics is, however, also being encouraged for domestic consumption.

COM.TEX/16

Peru

The major orientation of production is towards exports, given the serious recession in internal consumption.

Sweden


Switzerland


Turkey


United States

An export expansion programme for textile and apparel products, inaugurated in early 1979, is being implemented by the Office of Textiles and Apparel in the Department of Commerce in co-operation with Commerce's Bureau of Export Development, Promotional Campaigns. Specific projects underway, in this connexion, include a global market survey on the foreign sales potential of United States textiles and apparel, a series of export seminars tailored to the needs of manufacturers of textile and apparel products, a series of industry-organized government-approved apparel trade missions, and participation in textile and apparel shows. Other initiatives designed to improve the competitive environment for actual and potential exporters of textile products include an examination of the viability of entry of small companies into export trading and a concerted attack on foreign barriers to United States exports of textile and apparel products, in the light of the MTN results. In this connexion the Office of Textiles and Apparel has recently established a special Trade Facilitation Staff, designed exclusively to pursue non-tariff barriers and other trade problems which United States textile exporters are experiencing. Export financing is another important issue being considered by the Commerce Department in response to suggestions and recommendations made by textile industry representatives.

COM.TEX/16

Part C. ADJUSTMENT MEASURES AND POLICIES RELEVANT TO ARTICLE 1:U

1. The relevant questions are as follows:

GATT/AIR/I6II

2 (A) Autonomous adjustment processes

What autonomous adjustment processes have been identified in the textile industry? To vhat extent can they be attributed to changes in tne international patterns of trade in textiles and comparative advantage?

(B) Government measures

List adjustment measures and policies adopted by the governments to encourage business to:

(i) improve viability of current lines of production;

(ii) move progressively into more viable lines of production;

(iii) move out of the textile sector into other sectors of industry.

Information relevant to these measures might include a technical description of the measures, their purpose and an assessment of their effects. Information on measures to deal with problems arising from closures, unemployment, etc. would also be relevant.

2. A summary of the replies is given below as follows:

(l) Autonomous adjustment processes

Austria

Information on the results of autonomous adjustment processes, i.e. decline in employment and number of enterprises engaged in the textiles and clothing industries, has been given in Part A above.

Canada

(a) Processes identified with industry

In the textiles industry the processes have been identified as:

(i) concentration of production on long-run items to improve productivity;

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( i i ) r a t i o n a l i z a t i o n in c e r t a i n s e c t o r s , e . g . man-made woven f a b r i c r and k n i t t i n g ; and

( i i i ) move away from low-end p roduc t i on , e . g . c o t t o n sp inn ing .

In t h e c l o t h i n g i n d u s t r y manufacturers have moved from low-pr iced t o middle and h i g h - p r i c e d l i n e s of p roduc t ion and in t roduced newer t echno logy .

(b) Processes a t t r i b u t e d t o changes i n i n t e r n a t i o n a l p a t t e r n s of t r a d e in t e x t i l e s and comparative advantage

The adjustments mentioned above were under taken in response t o inc reased import compet i t ion in the domestic market , and due t o t h e fac t t h a t p r o t e c t i v e measures were invoked for a l i m i t e d number of p r o d u c t s .

EEC

The adjustment measures have mainly been undertaken by industry. They include modernization, rationalization, introduction of new technology and moves to more viable lines of production and efforts to increase exports. These have resulted in a number of enterprises closing down, in loss in employment and consequent changes in investment per person employed, as shown in Part A.

These changes have resulted directly from increased imports, fall in consumption growth and improved productivity.

For the member States see Part A, paragraphs 2 and 3 and the individual submissions.

Finland

In Finland, the industry itself is responsible for taking measures in favour of continuous adjustment to changing market conditions in order to ensure the effective functioning of the national economy, heavily dependent on foreign trade. In the textiles sector, these autonomous processes include cutting down unprofitable lines of products by raising the degree of processing and promoting product design.

Japan

The Japanese textile industries have been making efforts to meet the decline in production and enhance their international competitiveness by promoting the joint disposal of redundant facilities, as well as by strengthening their information - intensive capacity, fully taking into account international division of labour in the textiles sector, and avoidance of unnecessary competition with the textiles industries in the neighbouring countries.

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Sweden

As a result of changing market conditions, it has been necessary to carry out adjustment measures such as product development, design, marketing, finance, education etc., but also in the form of close downs or amalgamations. In view of the decline in Swedish textile and clothing production which has taken place during the last decade, it seems doubtful if adjustment in forms which would imply a further decrease in the production and productive capacity of the industries concerned would be consistent with the objective of avoiding damage to the minimum viable production, as well as of securing the supply of essential textile and clothing products.

Switzerland

In Switzerland, the progressive adaptation of the textile and clothing industry to the changing condition of the world economy is deliberately left to the responsibility of the private enterprises and induced by the market forces. Data on changes in employment, investment, etc., are given in Part A.

United States


(2) Government measures

(a) Description and purpose of adjustment measures and policies adopted by the governments to encourage business to :

(i) improve viability of current lines of production

(ii) move progressively into more viable lines of production

(iii) move out of the textile sector into other sectors of industry

Austria

The textiles a.nd clothing industries benefit from general government measures towards industry which are intended to facilitate new investment a.nd structural adjustment and to develop, rationalize and improve the productivity of the economy and the mobility of labour. These include, inter alia, accelerated depreciation allowances, investment reserves, various tax benefits, the support of investment for development and re-equipment, special support for small industries and trades, active labour policies, and financing facilities. These are not limited to the textiles arid r-lothing industry.

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It has not been practicable for firms to move out of textiles into other industrial sectors. Particular problems have arisen, inter alia, with the restructuring of clothing industries in rural frontier areas. The emphasis of government policy is therefore to assist the industry to move to special quality and high fashion production. Austria, as a neutral country, cannot abandon its textiles and clothing industry.

Canada

A national Textile Policy was introduced in 1970, to create conditions for the textiles and clothing industries to become more viable and increasingly competitive in the international market.

The central feature of the Policy was the establishment of the Textiles and Clothing Board. An independent body, it makes recommendations for protective measures only if proven injury is linked to evidence of prospective viability of domestic producers. Assistance to such domestic producers is given under different programmes of the government. These include:

(i) The Enterprise Development Programme (EDP), a general assistance programme, which includes the General Adjustment Assistance Programme (GAAP). This latter programme provides assistance in cases of injury, in the form of insurance against risk of loss on loans; direct loans in special cases; grants up to 50 per cent of cost for outside consulting assistance to developed restructuring proposals;

(ii) The Regional Development Incentive Programme which encourages modernization of manufacturing or processing operations in certain designated areas through grants or loan guarantees;

(iii) The Fashion Design Assistance Programme under which assistance is provided to professionals and students in fashion and fashion design;

(iv) Incentive programmes for textile and clothing industries in Quebec» Ontario and Manitoba, for adoption of new technology and for a move to more viable lines of production. These have been introduced under the Federal Government Incentive Programmes and Trade Policy, with a view to encourage improved productivity, provide joint services, and establish facilities which a large number of companies are unable to afford on an individual basis.

In encouraging the adjustment process, the Government has placed significant emphasis on direct communication with the industry. In this context, the Government established a Textiles and Clothing Task Force, which has considered, inter alia, efficiency improvement programmes and fiscal, trade and competition policy.

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EEC

The Community has indicated to member States that measures taken should be in conformity with the commitments made under the MFA. The measures have not been taken where the result would be over capacity or where there is a stagnation in demand. Assistance has been provided to those enterprises which have accepted to move to other sectors. In order to improve competitiveness improved technology and applied research have been encouraged. Measures which assist in modernization without creating increased capacity have also been provided.

Belgium

Under existing legislation on economic expansion, the Government has encouraged investments for reconstruction of the textiles and clothing sectors, even where it entailed reduced capacity and employment. Two specific financial measures have been introduced under the Royal Decrees of lU May 1977 and 20 December 1977, to assist enterprises to adapt to changing market conditions.

Denmark

Enterprises in the textiles and clothing sector can benefit from the general system of development aids allocated to industry in general. General schemes for re-training of unemployed people are also applicable to the textiles industry.

Denmark has not adopted official adjustment measures specially designed for the textiles and clothing sector, whether for improving competitivity, changing lines of production, or facilitating reconversion.

France

Government measures financed by quasi-fiscal levy, are channelled through the Textile Industry Structural and Commercial Modernization Committee (CIRIT). Assistance takes the form of:

(i) financing non-productive costs arising from re-grouping of small and medium-sized enterprises;

(ii) paying redundant personnel arising from closures;

(iii) financing collective projects such as the Economic Trends Observation Centre, fashion organizations etc;

(iv) modernization of small units, without increasing overall capacity;

(v) financing research programmes conducted by the Textiles Institute of France and the Technical Studies Centre of the Clothing Industries on new products, new technologies, automation, etc.

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In addition, the Government has assisted certain limited sectors (cotton, combed wool, throwing, texturization) for restructurization and improved productivity. Some assistance has also been provided on a case-by-case basis to encourage enterprises in difficulty.


Measures to assist industry may be summarized as:

(i) assistance to enterprises establishing in such areas as Berlin or the Zonenrandgebiet ;

(ii) access to information stemming from industrial research encouraged by the Federal and State governments. (This research is partially financed by industry).

Italy

Act No.1101 of 1971 which provided for financial and fiscal aids to the sector, was revoked by Act No.675 of 12 August 1977.

Ireland

In the early 70's the Government adopted as its official policy the findings of a study of the Woollen and Worsted Industry, on rationalization and restructuring of the sector necessary to meet changing conditions in world trade. Grants have been given for re-equipment, research and development, feasibility studies, moves out of unviable lines of production, or into higher quality products.

Luxembourg

No specific measures available.

Netherlands

Government measures in view of safeguarding the competitive position of the textiles and clothing industry in the Netherlands are designed to improve planning and efficiency of production, to strengthen the structure of assets, to improve profitability and to upgrade the production range through the adaptation and renewal of firms involved in the industry. Incentives for market research are also provided, together with certain facilities aimed at encouraging a common approach among enterprises towards exports.

COM.TEX/16 Page U2

At present sectoral aids are allocated to spinning, weaving and processing sectors, knitted and crocheted goods, ready-to-wear and cotton, rayon and linen industries, in the form of credits, investment premium schemes, subordinated loans and subsidies. The purpose of these aids includes strengthening the financial position of undertakings, restructuring the productive capacity by transfer of production installations and retraining of redundant personnel for other activities, improving information on sectors and markets, and promoting management and organization in the industry by software projects.

United Kingdom

Government measures of general support for modernization and rationalization relevant to the textiles and clothing industry are:

(i) Government regional financial assistance has supported eligible textiles and clothing firms. Projects will have to be more cost-effective, have to prove the absolute need for assistance, and will have to meet the efficiency test as being most likely to strengthen the regional and national economy, and promote more productive and secure jobs.

(ii) The Temporary.Employment Subsidy was replaced in 1979 by a general Temporary Short-time Working Compensation Scheme. Not confined to textiles and clothing, this scheme, under certain circumstances, provides employers who introduce short-time working as an alternative to redundancy with compensation for the payments they make to the workers concerned.

(iii) The Selective Investment Facility first introduced in 1976, provides revenue grants to projects which lead to identifiable improvements in performance. Since June 1979 stricter criteria are used for eligibility.

The following sectoral assistance schemes have been directed to wool textiles and clothing:

(i) Wool textiles - In order to achieve restructuring and rationalization without overall increase in capacity the first wool textile scheme was introduced in July 1973. Assistance under this scheme covered re-equipment, re-building, rationalization and amalgamation. It also provided redundancy payments for closures. A second scheme designed for further rationalization was introduced in November 1976. This took the form of loans at concessionary rates of interest, interest relief grants on national loans and grants to partially finance new machinery and building and partially to meet the consultancy fees of firms with less than 500 employees seeking improved productivity and efficiency.

COM.TEX/16 Page U3

(ii) Clothing - The Clothing Industry Scheme introduced in October 19Î5, was designed to encourage greater efficiency without an overall increase in capacity. Support was available for consultancy fees, for investment projects and for restructuring or reorganization.

A Clothing Industry Productivity Resources Agency has been established with Government assistance to help improve the industry's productivity.

In addition, Government finance is available to support cost-shared research and development projects in the industry and with research associations/institutes. For further details see United Kingdom submission in Section III.

Finland

A special governmental committee, with the task of examining problems in the Finnish textile and clothing industries, which had experienced severe difficulties in the early 1970s, gave its report in 1978. Most of its proposals were aimed at assisting adjustment by product development and other measures. Its recommendations are yet to be implemented and for the time being there is no specific comprehensive state programme of adjustment assistance for the sector.

The textiles sector benefits from general government programmes. These include support for research and development, and regional development finance programmes, through loans and interest rate subsidies, for industries in the northern and eastern regions of Finland. These programmes take into account the prospective international competitiveness of firms applying for assistance.

No specific measures have been taken to move firms from the textiles sector into other areas of the economy.

Japan

The Government has been assisting small and medium-sized enterprises to secure the necessary funds for the implementation of the structural reorganization programmes approved by the Ministry of International Trade and Industry in accordance with the Law for Temporary Measures Concerning Structural Reorganization of the Textile Industry enacted in July 197*+, and in force until May 198U.

In accordance with this law, the Government has been taking action to strengthen the information-intensive capacity of the industry and to accelerate its structural reorganization. Such measures are implemented to assist the industry in its efforts for the development of new manufacturing techniques of producing textile goods oriented to changing consumer tastes.

COM.TEX/16 Page hk

In order to emphasize the leading role of the apparel industry in connexion vith the strengthening of the information-intensive capacity of the textile industry in general, the Government has been taking measures to promote the education of the personnel employed in the apparel industry.

In addition, the Government has taken special monetary and tax measures to support the business conversion programmes of the enterprises in the textiles industry. These programmes are approved by the Ministry of International Trade and Industry in accordance with the Act on Provisional Measures for Business Conversion of Small- and Medium-Sized Enterprises. Furthermore, Government-related financial agencies provide loans to support the surplus disposal programmes jointly undertaken by small- and medium-sized enterprises. Under this scheme, approximately 20 per cent of the total facilities have been disposed of in the total textile sector.

Sweden

Government measures to assist integration, concentration, rationalization and adjustment in the textile and clothing industries have been in operation since 1970/71. One principal aim of such measures is to encourage companies to concentrate production in areas where they have possibilities of being competitive. They are not intended as a means of preserving companies which cannot compete without governmental support in the form of trade policy or other measures.

The government measures taken include: conversion support aimed at stimulating expanding enterprises to investigate all possibilities of amalgamation with less viable firms, co-operation between enterprises and structural adjustments within the enterprises; management education and development programmes; and export promotion programmes covering a part of costs for market analyses, market planning, product adjustment, and such collective activities as fashion displays. For fiscal year 1979/80 SKr 4U million have been set aside for such programmes; the programmes are to continue until the end of fiscal year 1981/82.

The government gives credit support measures in the form of depreciation loans. The aims of these credit support facilities include the maintenance of necessary supply capacity under agreements with the National Board of Economic Defence; and a special programme of rationalization within the ready-made clothing industry, through the introduction of new production techniques and increased research and development. In granting such loans, special attention is given to the possibilities of long-term and stable access to markets for the products concerned. Up to the end of fiscal year 1978/79, SKr 35 million had been granted in the form of such loans.

COM.TEX/16 Page U5

In addition, in 1977/70, special credit guarantees, given on condition that concrete rationalization plans have been established and aimed at stimulating structural changes, were established for the textile and clothing industries. The scope of such guarantees is SKr 72.5 million.

The textile sector has also been able to benefit from general financial assistance given by the National Investment Bank, the Board of Technical Development, and from governmental credit guarantees for small and medium-sized enterprises.

In 1977, a Special Council for the textile and clothing industry was established to follow developments and study their consequences for the sector. A Special Board - a consultative body - was also established in 1978 to advise the Government on restructuring policy and programmes in the sector.

Sweden pursues an active general labour and regional policy designed to assist business in abandoning non-profitable sectors and in moving into more profitable sectors of the economy. No specific assessment has been made of Ihe effects of this policy in,the textiles and clothing sector. The Government is offering re-location support to companies from other sectors which are willing to establish themselves in areas affected by the decline in employment in the textile and clothing industries.

Switzerland

There is no specific government policy for structural adjustment as such in the textile and clothing industry. Nevertheless, in recent years, some temporary measures have been taken with a view to alleviating the effects of successive revaluations of the Swiss franc on exports of this sector. Under a convention concluded in 1975 with the National Bank, Swiss banks discount bills of exchange at favourable rates for textile industries as a measure of export financing. The price advantage given by this measure, which has been progressively reduced, is now of the order of 1 per cent. The convention is due to expire on 31 October 198O. In this same context, measures adopted in October 1978, established a credit of about Sw F 3 million to support collective publicity by the Swiss textile and clothing industries abroad until the end of 1981.

United States

(,a) United States Government and other measures for adjustments in the textile and apparel industries

Trade adjustment assistance for firms and workers was established by the Trade Act of 197U to provide adjustment assistance for firms that have had adverse effects on their business because of increased imports and to help workers who become totally or partially unemployed as a result of increased imports. The objective of the Act is to facilitate the orderly transfer of resources to alternative uses and help in making an adjustment to new conditions of competition.

COM.TEX/16 Page k6

Certifications of eligibility for adjustment assistance to industrial firms and workers are issued, respectively, by the Secretary of Commerce and the Secretary of Labour. A firm will receive technical assistance and/or financial assistance in the form of direct loans or loan guarantees. Workers will receive weekly payments and will be assigned to regain satisfactory employment.

(b) Co-operative measures by the United States Government and various elements of the United States apparel industry

During the past two years, the Commerce Department's Economic Development Administration and .the United States Department of Labour have made a number of grants to industry associations and educational institutions with the purposes of, inter alia, improving productivity, fostering technological innovations , maintaining stable employment and identifying new management practices, business methods and marketing strategies in the apparel industry.

(2) Government measures

[b) An assessment of their effects

Austria

See (2)(a): no information available.

Canada


EEC

The effects can be seen in detail in (2)(a) above and it should be noted that it is not easy to draw a clear borderline between the effects of government measures and the impact of autonomous adjustment processes. The results achieved are attributable to the continuing investment effort made by undertakings, which was focused on modernization and has excluded any expansion of capacity.

Finland

A quantitative evaluation of the effects of programmes mentioned above has not been found possible.

COM.TEX/16 Page 1+7

Japan

Under the joint disposal programmes for surplus facilities, the total size of the textile sector has been reduced by about 20 per cent.

Sveden


Switzerland


United States

The precise effects in quantitative terms of these various adjustment measures have not been calculated. In general qualitative terms, however, the measures are judged to be helping firms in the apparel industry to better assess their current competitive status and future potential in terms of both the United States domestic market and various export markets.

(3) Information on measures to deal with problems arising from closures, unemployment, etc.

Austria

No specific information given (but see Part C:(2)(a)).

Canada

The Adjustment Assistance Benefits Programme was established in 1971 to assist workers whose jobs are lost due to import competition or restructuring. Expenditures under this programme average almost $1 million annually, having a total of $8,285,378 as of 31 August 1979, for 770 workers, of whom U6U are presently receiving benefits.


Programmes for retraining the unemployed are being jointly financed by the European Social Fund and national governments. Efforts have also been made to create alternative sources of employment, particularly in regions most hit. These have been financed by the European Regional Fund, and in some instances by national governments. For additional details see Section III.

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Finland

During the economic recession in the mid-1970s, when unemployment reached a record level in Finland and when several closures took place in the textiles and clothing industry, the Government of Finland decided to buy certain firms threatened by closures. This decision was taken in order to smoothen the adjustment process and let it happen in socially acceptable conditions. As a result of these purchases a State-owned firm Valvilla Ltd. was established. Today there is a programme for the gradual phasing out of the unprofitable entities and lines of production of this firm.

A programme for the retraining of unemployed workers is also operated for industries generally, covering thus also the textiles and clothing sector.

Japan


Sweden

Government measures taken in this context include grants for the retraining of employees threatened with layoff, as well as temporary employment grants to companies employing persons above the age of fifty within the textile and clothing industry.

Switzerland


United States

Trade adjustment assistance under the Trade Act of 197^ may bç made available to any firm, group of workers or their authorized representative, which is certified as eligible for benefits by the Secretary of Commerce (for firms) or the Secretary of Labour (for workers). Criteria for eligibility relate to threat of or actual unemployment to a significant number or proportion of workers in a firm or sub-division; absolute decline in sales, or production, or both, of a firm or sub-division; and to the fact that increases in imports of competing articles contributed importantly to such problems.

Loan guarantees to firms and technical assistance are made available through the Economic Development Administration, working through federal agencies or private firms, individuals and institutions.

Eligible workers may receive weekly payments which, together with any State Unemployment Assistance payments entitlements, equal 70 per cent of the previous weekly wage. The maximum allowance can, however, be no greater than the national average weekly wage in manufacturing. Workers may receive such allowances for up to fifty-two weeks, except for workers over sixty years of age who may receive the allowances for an additional twenty-six weeks.

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Part D. INCREASING ACCESS TO THE MARKET

1. The relevant question is as follows

GATT/AIR/l6ll:2(c)

Information in regard to increased access to the market (e.g. liberalization of quantitative or other restrictions) "by year, made possible by the impact of the above-mentioned autonomous adjustment processes as well as official adjustment measures and policies.

2. A summary of the replies is given below as follovs:

Austria

Imports of textiles increased from S 10,297 million to S 17,268 million between 1973 and 1979- In the same period, imports of clothing grew from S 2,977 million to S 8,1+72 million. The foreign trade deficit in respect of textiles widened from S 723 million to S 2,267 million, and that for clothing from S 588 million to S 3,1+39 million.

Quantitative restraints previously maintained under the MFA against a number of countries have been terminated. No restrictions currently exist against Egypt and Pakistan, and a large number of articles imported from Korea have been freed from quantitative limitation.

Canada

GATT Article XIX global import quotas on acrylic yarn have been replaced by bilateral export restraint agreements under the MFA with major low-cost suppliers of clothing. Article XIX action on double-knit fabrics have also been lifted. These moves have resulted in an increase of access to the Canadian market for all de-restricted sources. In 1979 under 6 per cent of all imports of textiles were under restraint, as against ll+.8 per cent in 1977.

These changes were made possible by the favourable conditions created by the adjustment processes mentioned in Part C above.

EEC

Between 1973 and 1979, imports of MFA products increased in volume by 105 per cent, whereas exports increased by only 21 per cent (the deficit in 1979 was equivalent to 579,000 tons). For the same period the penetration rate increased from 18.1+ per cent to 38 per cent with peaks of nearly 70 per cent for specific products.

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The data in terms of value confirm this trend:

- from EUA 3,900 million in 1973, imports increased to EUA 10,900 million in 1979 (+ 179 per cent);

- exports increased from EUA 5,000 million in 1973 to EUA 7,900 million in 1979 (+ 58 per cent);

- the trade balance moved from a surplus of EUA 1,100 million in 1973 to a deficit of EUA 3,000 million in 1979-

This progressive reduction of outlets together with appreciable import penetration has had a direct impact on production. Despite some recovery in 1979, the level of activity is still below what it was in 1973.

Finland

Textile and clothing imports are generally free from quantitative restrictions. Previous quantitative restrictions against Poland and Korea have been liberalized, the former in 1978 in the context of a free-trade area agreement between Finland and Poland, and the latter in 1980 when Finland and Korea concluded a bilateral agreement under the MFA.

Finland also grants GSP treatment to certain textile products imported from developing countries.

Developing countries have doubled their share of total textile and clothing imports in the 1970s, and even imports of products under restraint have increased considerably.

Japan

At present, Japan does not impose any restrictive measures on textile products covered by the Multi-Fibre Arrangement. Imports increased sharply in 1978 to a level of 71.3 cer cent above de previous year in volume. The growth continued in 1979, with an increase of 23.7 per cent.

Sweden

Whereas production within the Swedish textile and clothing industry has decreased substantially over the 1970s, imports of such products increased from SKr 3-9 billion in 1973 to SKr 8.6 billion in 1979- Imports of clothing products accounted for almost 80 per cent of the total supply in the clothing sector.

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With imports of clothing products from developing countries amounting to 33 per cent of the total clothing imports in quantitative terms, Sweden remains the main importer per capita of such products from developing countries in 1979-

Switzerland

Switzerland has not had recourse to import restrictions in order to protect its domestic market from the effects of substantial revaluation of the Swiss franc and the resulting improvement in the competitive position of the exporting countries. As a result, the share of imports in domestic consumption of textiles and clothing has increased appreciably in recent years.

United States

The United States Government has provided increased access to its market from developing countries by allowing apparel imports to increase substantially within the network of quotas negotiated with exporting countries and by reducing progressively the number of quotas in effect on the imports of textiles. In this latter respect only ten of the twenty-one bilateral agreements in force in 1980 set ceilings on non-apparel products, and these are substantially above the levels of trade. Nine other bilateral agreements provide consultation mechanisms in place of market problems relating to non-apparel categories, but only one has been invoked in the last two years.

Furthermore, the United States actions under the MFA have permitted the exporting countries to benefit from market growth of cotton, wool and man-made fibre apparel items. This is reflected by the compounded annual growth rates of 13.*+ per cent and 3.7 per cent, respectively, for imports and domestic production of outerwear apparel items between the first year of the MFA and 1978. The ratio of imports to production of non-outerwear apparel has increased from 13.*+ per cent in 197*+ to 3*+.9 per cent in 1978. In value terms, imports of apparel products indicated a compounded annual growth rate of 19-1 per cent between 197*+ and 1979, i.e. more than twice the quantity growth rate of apparel imports. The major portion of the value growth is attributable to exporting countries upgrading of apparel items, given the fact that the United States restraints have been assessed on a quantitative basis.

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SECTION

Replies to Questionnaire

Austria

Brazil

Canada

Colombia

EEC

Belgium

Denmark

France

F.R. Germany

Ireland

Italy

Luxembourg

Netherlands

United Kingdom

Egypt

Addendum: Hungary

Singapore

Pages

53-55

56-68

69-75

76-95

96-113

111*

111*

115-116

117-118

118-120

120

121-123

12U-127

127-130

131

pages

Table

195-

202

Of (

201

III

GATT/AIR/I6II

:ontents

and 1612

Finland

Hong Kong

India

Indonesia

Israel

Japan

Korea

Macao

Malaysia

Peru

Sweden

Switzerland

Turkey

United States

Pages

132-135

136-138

139-1U5

1U6-1U7

IU8-IU9

150-153

15»*

155-156

157-158

159-160

161-165

166-170

171-173

17H-191*

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AUSTRIA

A. Autonomous adjustment processes

The processes by which the Austrian textiles and clothing industries have adjusted to the changing pattern of market and competition are demonstrated by the development of employment. At the end of 1973, the Austrian textiles industry employed 63,701 persons. That figure decreased continuously in the following years and reached at the end of 1979 a level of 1+6,626 persons. This means that the number of employees decreased by 26.3 per cent during the aforementioned period. The Austrian clothing industry employed at the end of 1973 38,77*+ persons and at the end of 1979 33,370 persons; the number of employees decreased by 23-9 per cent.

A similar tendency can be observed in respect of the number of factories. The number of factories in the Austrian textiles industry decreased from 710 factories (December 1973) to 578 factories (end of 1979) or by 18.6 per cent. During the same period the number of factories of the clothing industry decreased from 6l7 to 53^ factories or by 20.3 per cent.

These few statistical data already illustrate the autonomous adjustment process of the textiles and clothing industry which at present is under way. This process is further illustrated by the development of the share in domestic market held by the Austrian textiles and clothing industry. In 1973, 52.k per cent of the Austrian market were supplied by the domestic textiles industry. Through increasing import competition, in particular through extremely tough competition in certain areas (predominantly with respect to prices), its share of the domestic market declined continuously and was reduced to 31.h per cent in 1979. The domestic market share decreased therefore by 21 percentage points or by 1+0.1 per cent, respectively. The share of the domestic clothing industry in the Austrian market was in 1973 70.3 per cent, in 1979 only Ul.3 per cent; it decreased by 29 percentage points or by 4l,3 per cent, respectively.

The efforts undertaken by the Austrian textiles and clothing industry in this autonomous adjustment process are also illustrated by the investments made. Provisional data show that the Austrian textiles industry invested in 1979 S 1,023 Mio. and that investments of the clothing industry reached S 251 Mio.

B. Government measures

The textiles and clothing industries are entitled to the same benefits which the Austrian Government makes available to industry as a whole. In order to facilitate the financing of investments and structural adjustments, to develop, to rationalize and to improve the productivity of the Austrian

COM.TEX/16 Page 5^

economy and the mobility of labour, the respective legal texts include, inter alia, provisions for speeded-up depreciation allowances, investment reserves, the fiscal treatment of undistributed profits, the reduction of Corporation Tax., the improvement of economic structures in the smaller industries and trades, the support of investment serving development and re-equipment, the promotion of research and competition, active labour market policies and financing facilities. It should be underlined that these measures are not restricted to the textiles and clothing industry as such.

Experience has shown that it has not been practicable for firms to move out of the textile sector into other sectors of industry. This was in particular illustrated by major difficulties which arose with respect to the restructuring of clothing industries in rural frontier areas. The Austrian Government has therefore decided to promote the efforts undertaken by the textiles and clothing industry to shift the emphasis of production to products of special quality and of high fashion. For investments with a restructuring effect of the type mentioned government offers grants which are limited in time. Linked to such grants is the engagement by the factories to scrap the outdated machinery. This policy takes in particular account of the fact that a neutral country like Austria cannot abandon its textiles and clothing industry (security of approvision).

C. Increasing accesB to the market

As the steady increase in sales by foreign firms demonstrates; the Austrian import régime for textiles is extremely liberal. Imports have increased as follows, in 1973, textiles of a value of S 10,297 Mio. have been imported; this figure increased continuously since then and reached in 1979 a value of S 17,268 Mio. showing thereby an increase of 67.7 per cent. During the same period; imports of clothing increased from S 2,977 Mio. to S 8,U72 Mio. or by 181+.6 per cent over a period of six years.

Foreign trade in textiles and clothing shows a considerable import surplus which widened significantly during the last years. The deficit in foreign trade in textiles trade increased from S 723 Mio. in 1973 to S 2,267 Mio in 1979- Even more marked is the increase of the import surplus for the clothing sector. The trade deficit increased from S 588 Mio. in 1973 to S 3>39 Mio. in 1979. These figures demonstrate that access to the Austrian market has been continuously facilitated for foreign suppliers.

The liberal character of the Austrian trade policy in this sector is best demonstrated by the fact that a number of quantitative restraints which were previously maintained in accordance with the MFA have been terminated over the last years. With respect to textiles, by 1 January 1978 all

COM.TEX/16

quantitative restraints vis-à-vis Egypt and Pakistan have been abolished. Furthermore, by 31 July 1979» the quantitative restraints on the following items have been abolished vis-à-vis the Republic of Korea: terry towelling and similar terry fabrics; other woven fabrics; gloves, mittens and mitts, knitted or crocheted, not elastic nor rubberised; stockings, under stockings, socks, ankle socks, sockettes and the like, knitted or crocheted, not elastic nor rubberised; undergarments, knitted or crocheted, not elastic nor rubberised; outergarments and other articles, knitted or crocheted, not elastic nor rubberised; men's and boy's woven outergonaents;; women's, girl's and infants' woven undergarments, bed linen, table linen, toilet linen and kitchen linen; curtains and other furnishing articles.

COM.TEX/16

BRAZIL

1. (A) Recent developments in investment, productive capacity, employment, etc., for textiles and clothing

(i) Current state of production

In 1978, production of textile fibres in Brazil amounted to 86U,000 tons. Industrial consumption of textile fibres in the same year totalled 878,000 tons. Averaged over the three years 1976-78, production was approximately 2 per cent higher than consumption (average production = 860,000 tons; average consumption = 839,^00 tons). Compared with the period 1966-68, output grew by 20 per cent.

Production of natural fibres covered by the MFA (cotton and wool) has varied considerably from year to year. In 1978, cotton production was at roughly the same level as in 1963 (U88,000 tons), whereas the largest cotton crop - 721,000 tons - was registered in 1969.

Output of synthetic fibres has been growing rapidly, particularly since 1972, and amounted to 213,200 tons in 1978, or 25 per cent of that year's fibre production. As regards regenerated fibres, results have remained more or less static at between 1*5,000 and 55,000 tons.

In 1978, consumption of cotton exceeded domestic production for the first time.

(ii) Investment

Fixed investment in the Brazilian textile industry reckoned in terms of projects approved by the Industrial Development Council) peaked in 1973-71*' Since then, the largest investments have been made in the field of synthetic fibres, but, on the whole, investment has fallen to 3 per cent (in current prices) of 1913-lh.

(iii) Employment

Apart from made-up articles and clothing, employment in textiles has not increased. In the period 1962-68, average employment was about 3 0.,000. In 1969-70, employment fell to under 300,000, recovering to a peak of 371,000 in 1973. In 1975, the latest year for which there are statistics, employment receded to about 356,000.

1. (B) Government and other plans for the expansion of the textile and clothing industry, including aids for the realization of such plans

At the beginning of 1979, the Government of Brazil decided, in connexion with the negotiations concerning the Code on Subsidies and Countervailing Duties, to phase out the benefits accorded to exports in general by way of tax relief (IPI - Federal tax on industrial products; and ICM - State taxes

COM.TEX/16

on the movement of goods). This decision was communicated to GATT on 5 February 1979 and reported to the Contracting Parties in document MTN/25, dated 13 February 1979. In December 1979» simultaneously with a big devaluation of the cruzeiro, the Government of Brazil decided to terminate all such benefits unilaterally.

The Government of Brazil does not have any development policy or scheme especially designed for the textile industry. Brazil's textile industry benefits from the measures adopted by the Government for the development of the country's industry as a whole, to which may be added regional economic development schemes designed to support the economy of the more backward regions. Lastly, it should be noted that the expansion of Brazil's textile industry is due mainly to the growth of domestic demand, for the export volume represents a relatively snail share of total production.

1. (C) Trade in textile products

The data available relate to the period 197**-78, during which Brazil's exports of textiles, clothing and accessories rose from 132,000 to 211,590 tons, or by 59 per cent. The most rapid growth in products covered by the MFA was registered in exports of cotton fibres (plus 86 per cent) and wool tops (plus l62 per cent).

In the sane period, imports fell from 96,000 to 1*8,500 tons, or by 70 per cent. Imports declined in every year since 197*+• Fibre imports alone declined from 59sOOO to 8,800 tons.

Over the 197^~78 period, Brazil's textile trade surplus improved from US$236.7 million to US$586.0 million.

2. General statement concerning Brazil's textile industry in the context of international trade in textiles

The dimensions acquired by the textile industry within the economic and social structure of Brazil and its importance in the international trade in textiles are well illustrated by the statistical data given in the tables annexed to this report.

By way of comparison, it may be mentioned that Brazil1s textile industry now holds fourth place in world production, after India, Japan and the United States of America. According to the latest estimates from Government sourcesa Brazil's textile exports should amount to approximately US$1,000 million in 1980. What is more, the heads of Brazilian textile enterprises hope to nr.intain the rate of growth registered in recent years -a forecast which mainly reflects their feeling of confidence in the Governr.ent's measures to combat inflation and support the country's economic development.

COM.TEX/16 Page 53

The achievements of Brazil's textile industry in the last six years are due essentially to the stability attained in the supply of cotton; this has been made possible by better planning in the management of stocks. The supply of this raw material, however, is beginning to be a source of some concern to the industry, although it is a problem which could arise only at some time in the future, since, for the time being, domestic demand and production are in balance. Estimates for the current year indicate a surplus of approximately 20,000 tons, or k per cent of the 1980 cotton crop, which will be disposed of in foreign markets.

nevertheless, an eventual disparity between availabilities of domestic cotton and the growing needs of the processing industries may bring about a future slowdown in certain sectors of production, in particular in the synthetic fibres industry, where cotton at present accounts for 50 per.cent of all the raw materials used and 1978 production showed an increase of 1^998 per cent over 1970.

At the same time, Brazil's balance-of-payments problems have certainly affected imports of machinery for the textile industry; this is partially reflected in the reduction in the number of new industrial projects since 1973-71*.

The foregoing considerations therefore constitute the vulnerable points in the dynamics of the accelerated growth of Brazil's textile industry, which now numbers 5,500 plants and accounts for 20,000 jobs. Apart from those difficulties,, the country's textile industry has, by reason of the present volume of its operations and its high degree of competitivity, rather encouraging prospects, which are reassuring for its future.

UHA/11. - ffXrili 1HP0IIT3

1 - MAN-MAUL AMU NATUKAl. Klill.t .1

1 - Nylon 2 - P o l y e s t e r

3 - A c r y l i c

'1 - S t a p l e

; - A c e t a t e

6 - Woo l /woo l t o p s

7 - F l a x

b - C o t t o n

; - J u U 10 - O t h e r

.- - YAiii.'A'iiAMi inn

1 - Nylon

2 - P o l y e s t e r

) - A c r y l i c

<l - S t a p l e

} - A c e t a t e

6 - « o t t o : ,

/ - ilooJ

8 - O t h e r

3 - b'ABIUCS

1 - o f loan-made f i b r e s

2 - o f wool

3 - o f c o t t o n

<l - of o t h e r l l L l - c s

1* - MADE-UP A11TICUE3

1 - H o s i e r y a n d k n i t t e d e u u w i i l a

2 - Q a r m e n t s a n d f i t t i n g . » , woven

3 - Bed l i n e n , t a b l e U n u l l , t o w e l s , e t o .

>l - O i l c l o t h , t e n t s

5 - O t l i e r

5 - OTIIKH MANUi'AO'fUllKS

T O T A L

1 . 9 7 1

TONNE*

5 ' i . i i f l , n

7 1 7 , 1 i . 1 5 5 , 2 9 . 5 9 7 , 6 B . B 7 0 , 3

9 0 , 0

1 7 " , 7 2 .29<- ,2 2 . 1 2 3 , 7

2 0 . W 9 . 0 t id .n

1 1 , 0 9 0 , 0

5 . 5 ( 0 , 0

9 . 5 M . 1

5 7 9 , 6

0 ) 0 , 4 K I I . I

2 1 6 , 5 lOO,9 6 5 1 , 0

1 5 . 3 3 7 , 6

1.7'tO.O

2 7,5 > n , i

1 3 . 1 / 6 , 3

< > r , i

7 1 . 7

3 0 9 , 1

7 6 , 9 L ^ . O i n o . i

1 . 0 0 5 , 6

9 5 . 7 2 7 , 3

US S 1 . 0 0 0

o r

6 5 . 7 7 0 , 7

1 . 0 2 9 , 0

1 1 . 0 6 0 , 1

2 0 . 0 5 1 , 5

1 2 . 1 9 2 , 2

1 2 9 , 1

1 5 3 , 2

1 . 6 6 7 , 0

5 . 1 5 7 , 5

12 . t ' . 1,1

t . ^ . O

t o . 0 . 1 ) , 5

1 0 . 5 0 1 , 8 3 1 . 7 1 0 . )

1 . 0 3 6 , 7 t.215,0 2 . : - o i , i

1 . 1 2 5 , 1

0 1 1 , 0 7 . 6 4 6 , 5

3 3 . 5 0 5 , 2

7 . 0 6 7 , 5 4 6 5 , 0

1 . 1 6 5 , 1

5 1 0 , 5 1 5 . 2 1 6 . )

n . )(-•>,(.

I . ? t 0 , 9 6 . 2 0 5 , 1

7 3 1 , 1 5 3 3 , 3 1 6 7 , 9

J 1 . 7 > 5, 5

2 0 S . 0 7 5 , 5

1.975

WHNL3

1 2 . 0 2 7 , 6

5 3 7 , 5

1 . 6 6 1 , 3

5 . 7 9 7 , 3

1 . 0 2 9 , 1

5 9 6 , 5

6 0 0 , 0

1 . 1 5 1 , 2

3 2 . 5 2 0 . )

3 ) 1 , 5

6 . 1 5 7 , 0

l . u t , : 5 . 1 1 6 , 1

D,.-1

3 0 3 , 5 20 i,<)

11,1 J / , 0

1 . 1 5 5 , 7

1 0 . 0 5 0 , 0

1 . 4 6 7 , 2 2 6 , 0

2 1 1 , 1 5 5.6

9 - 2 1 7 , 5

1*7,7

2 7 , 5 2 0 5 , 6

7 7 . 0 6 , 6

6 5 , 2

5 . 1 1 1 , 8

6 3 . B 1 7 . 0

USf 1 .000 c i r

3 1 . 1 1 0 , 1

1 . 2 0 5 , 7

2 . 1 1 1 , 1

6 . 5 6 5 , 5

2 . 1 5 6 , 1

7 5 5 , 0 b 6 o , 0 6 9 5 , 4

1 6 . 0 5 6 . 0 5 5 0 , 1

2 0 . 0 5 2 , 0

1 . 2 ( 7 , 5 9 . 3 0 0 , 1 .

6 0 , 0 0 1 . 0 , 0

0 • . / , " .

»//,<'. 5 7 / , 7

4 . 3 * 4 , 7

4 0 . ( 4 7 , 4

6 . 3 1 6 , 1

7 3 1 , 6 1 . 1 3 1 , 0

? H l , 6 ) 1 . 0 1 0 , C

( . . l l ^ . O

9 * 0 , ) 4 . 1 6 7 , 0

6 1 0 , 1 7 u , 9

J l i , 1 .

U . 6 2 0 , 5

1 . 9 7 6

TONNES

2 9 . 0 6 1 , 1

1 . 2 5 1 , 6

2 . M 5 . 5

6 . 5 7 9 , ' '

1 . 7 0 1 , 2

0 , 0

1 . 1 1 * 1 , 7

6 7 9 , 6

9 9 9 , 6

1 3 . 0 0 7 , 6

1 . 2 0 5 , 2

Ï . V » , 5

1 . 1 1 7 , 1

1 . 7 0 1 , 9

1 7 0 , 5

L ' 1 , 1

1 5 1 , 7

f. ,1

2 2 , 5 2 2 5 , 1

1 0 . ( 1 7 , 1

777,7 2 1 , 0

>:•(., 0 11,1

9 . 7 1 0 , 6

521 , n

1 7 , 2 3 2 1 , 6

6 6 , 6

1 , 0

fil,6

1 . 0 7 9 , 3

U 3 . 7 5 1 . 9 1 5 . 2 ) 1 , 9

u s f 1 .000 c i r

3 2 . 3 1 0 , 5

2 . 7 6 0 , 6

1 . 0 1 9 , 1

1 0 . 7 2 6 , 6

2 . H 0 . 9

1 4 . 7

J . 2 5 2 , 5

9 9 0 , 2

1 . 9 5 2 , 5

3 . 1 0 1 , 0

9 7 2 , 3

1 6 . 5 0 2 , 9

1 . 1 1 5 , 1

6 . 1 6 1 , 0

3 1 6 , 5

3 3 0 , 1

1 . 3 0 7 , 6

(1,11

. • •26 ,7

2 . 0 1 5 , 0

5 0 . • • ( .1 ,9

5 . 9 ' 5 , 9

C ' 2 , 0

6 ( . ' , , 3

o'..i 3 1 . 0 5 6 , 6

1 0 . T P , 9

1 . 3 7 3 , 0 B . s 5 1 , 7

5 5 5 , 1 ? 7 . 1

5 1 1 . 9

9 . 1 5 3 . 1

1 0 7 . 5 0 0 , 5

1 . 9 7 7 ( 1 )

TÙNNE3

1 0 . 7 5 2 , 5

3 9 0 , 2

1 . 7 9 0 , 2

1 . 0 2 6 , 2

1 . 5 1 2 , 2

2 0 2 , 0

5 0 2 , 5

0 2 1 , 0

7 0 9 , 2

5 . 5 0 7 , 1

5 . 1 0 1 , 1

1 . 3 / O . B

2 0 , 6

1 - 2 , *

( . 6 6 , 0

* , >

5 0 5 , 0

1 1 . 6 5 5 , 5

1 . 0 5 6 , 7 3 0 , 6

4 a \ 7

K . 2 1 2 . 2 1 0 , 1

i p s , n

1 7 . 0 2 0 1 , 1

6 1 , 5

i . l 1 2 0 , 1

1 . 2 1 1 , 8

\>±i 1 .000 roB

1 5 . 3 6 2 , 1

5 5 1 , 5

1 . 0 9 2 , 9

6 . 0 7 9 , 0

1 . 3 1 1 , 6

7 3 0 , 2

1 . 2 1 7 , 2

1 0 6 , 1

4 3 1 , 3

1 6 . 3 0 9 , 3

7 . 1 1 1 . 1

3 . 5 1 5 , 9

1 1 7 , 7

5 5 0 , 7

1 . 6 5 . 3 , 0

5 , >

3 . a u , 7

1 2 . 2 1 1 , 5

6 . 5 1 0 , 7 1 1 6 , 0

1 . 7 5 5 , 6 1 0 2 , 2

3 1 . 1 1 1 , 0

B . . ' 7 , 0

2 1 2 , 1 6 . 9 7 7 , 9

6 l a , i > 4 , 7

7 9 3 , 6

1 0 . 2 6 5 , 5

1 .970 ( 1 )

TONNES

0 . 0 ? 0 , 3

5 1 5 , 0 2 . 6 7 1 , 3 2 . 2 C 2 . 4

0 5 1 , 6

30u,B

VV.d,9 5 6 o , 7

t ) o , 0

6 . 9 ? - , 0

5 . U . J . 7 3 0 - , 6

5 6 , 7

2 1 0 , 0 l ' . Î . O

» .5 C , l

1 1 0 , 6

i i . o : . ? , 5

1 . 5 1 2 , 5 C 2 . 1

26C.O l u . t

9 . 2 0 1 , 5

5 , 4

2 1 0 , 5

1 7 , 5

C , 4

9 1 , 9

l . D . , 0

5 2 . 7 2 2 , 5 9 1 . 1 4 6 , 2 2 0 . 1 5 0 , 1

USf 1 . 0 0 0

roe

U . l ' 0 , 9

7 0 1 , 2

3 . 6 2 1 , 7 » . 3 7 b , 6

9 0 2 , 3

1 . 0 1 0 , 9 1 . 3 8 5 , 2

7 7 5 , 5 1 9 , 1

3 2 0 , 2

1 9 . 5 5 0 , 6

1 2 . 2 0 5 , 5 1 . 6 0 2 , 7

2 8 6 , 7 506 ,2

1 . 0 6 1 , 0

2 , k

1,9 2 . 0 0 5 , 6

J 2 . 1 0 C . B

5 . 5 6 1 , 0

5 ' 7 , 9 1 . 1 5 1 , 1

1 ( 5 , 2 2 5 . 5 1 9 , 6

b.*.r« , 0

1 0 3 , 5 3 .10-a ,9

6 3 1 , 0

3 .» 5 7 9 , 8

1 1 . 0 . ' - , 7

0 2 . 7 1 9 , 0 •

BhÀZIL - EXPORTS Of TKITH.E MAHUMCniBES

1 - YAhN PILAMimS

1 - S i l k 2 - Man-made

5 - Wo > 1 1 C . t t . n

S - P l i i / l l » l i

6 - O t h e r

2 . KADhlCS

1 - S i l k

? - Man-wedr

3 - P l u ha mle

* - r > t I in

•> - . Ju t e

t - «e l l e t PI l e ' U i e n l l l e / - -ki.- .e Lace i i u t i j l d e i a U I b b i U b / i u n o u

fat i 1 cs 8 - Other

5 - MADE-UP ARTICLES

1 - H o s i e r j / K n l t t e d garments 2 - Garments and f i t t i n g s , woven 5 - Bed l i n e n , t ab l e l i n e n , ba th and

k l tohen towels * - Sacks and bags 5 - 0 1 1 -o lo th /Ten t s 6 - Other

* - OI11ER MANUPACTUHLS

1 - Man-made f i b r e s 2 - Wool tops 5 - Carpets * - Cables and r o p e s , s t r i n g

5 - Other

T O T A L

1 9 7 *

TONNES

J O . , ? 0 0 , 5

6 2 9 , 5 6 . * 0 1 , * 1 . 2 1 6 , 5

2 8 . 5 2 5 , 7 l - * 2 9 , 5

1 0 7 , 9

2 0 - 5 2 5 , 5

2 0 , 5 5 . * C 0 , 0

6 5 3 , 9 19 .0 1 *» ,9

2 . 7 5 7 , 5 2 5 6 , 0 2 2 0 , 5 1 5 0 , *

i « . . 7 i i , i

5 .1 .50 ,0 * . 7 C * , *

6 . 6 * 7 , 7 •

2 6 * , 3 * 5 * , 9 1 0 7 , 8

*<J .**6 ,*

* . 7 0 1 , 7 * . 2 7 3 , 5

70 ,1 J 7 . 0 5 5 , 0

2 . * 5 1 , 1

1 3 2 . 6 0 9 , 3

i s , l . o o o FOB

100 .20 .3 ,0

1 6 . 5 7 1 , 0 1 5 . * 9 l , 5

6 . 6 0 0 , 8 6 t> .*05 ,6

2 . 8 7 5 , 7 5 5 1 , *

17 5 . 7 V , 3

1 .1C2 .0 5 2 . 1 8 1 , 6

2 . 5 7 9 , 0 6 0 . 0 0 7 , 2

2.11*0,6 2 . 2 2 6 , 2

1 . 8 6 1 , 9 1 . 5 5 6 , 1

1 * 1 . (CO, i

5 6 . 5 2 5 , 2 5 2 . 5 2 0 , 7 2 9 . 2 5 0 , 0

5 7 5 , 1 2 . 0 7 5 , 0

0 0 5 , s

7 1 . : , o , 7

7 . 0 * 0 , 0 1 7 . 0 2 7 , 0

2 1 0 , 0 *0 . f .O7, 5

* . 5 1 7 , 5

* * * . 7 9 1 , 0

1 9 7 J

TONNES

* 0 . 5 7 6 , 2

1 - 0 1 2 , * J . 7 0 0 , 0

2 . 1 5 5 , 7 • . 1 . 9 5 5 , *

7 5 0 , 5 * t t ,2

5 0 . 5 5 0 , 0

2 * , .

5 . 0 1 2 , 7 C 5 7 . 6

2 0 . 9 1 3 , 5 * . l f l 3 , 2

1 6 6 , 9 1*2 ,0

0 7 , 7

J 9 . 0 1 0 . 9

2 . 7 W . 7 * . 5 5 7 , 7

1 0 . 5 . - 0 , 5 5 5 * . 5 8 5 2 , 7 1 9 0 , 0

J O . P U j O

2 .01 .0 ,0

6 . n r , i 1".7,5

2 1 . 5 2 0 , 2 1 . 1 7 7 , 2

1 2 9 . 7 6 0 , 1

US» l.OOO roa

1 0 0 . 0 0 * , 6

2 0 . 1 2 0 , * B . 7 0 5 , 5 a.ooo,7

6 7 . 0 5 5 , 2

2 . 2 5 7 , 9 2 J 5 . 1

0 1 . 7 9 5 , 8

9 9 8 , 5 2 9 . 1 0 8 , 9

J . 6 1 8 , 1 * 9 . 9 7 0 , 5

* . 7 9 5 , 2 1 . 0 5 2 , * 1.3<.7,9

8 5 * , 5

1 2 6 . 5 7 ? , 7

5 5 . 0 0 1 , 7 * ? . 5 9 5 , 1 3 9 . 5 7 2 , 2

0 * 3 , 0 2 . 1 ^ 6 , 9 1 . 5 * 0 , 0

5^.l«*,o

2 . 9 0 9 , 9 2 2 . 0 * 1 , 8

5 6 1 , 2 2 5 . 0 0 2 , 0

5 . 7 5 0 , 5

5 7 0 . 5 9 7 , 1

1 9 7 6

TONNES

* 0 . 5 " 5 , *

1 . 0 0 5 , 2 2 . 7 9 0 , 8 2 . 6 * 7 , 5

4 0 . 9 ^ * , 2 6 0 0 , 9 2 0 1 , 0

2 * . 6 0 0 , 6

5 5 , * 2 . 5 0 1 , 8

7 * 5 , 2 1 2 . 6 0 0 , 2

a . 2 9 0 , 5 2 0 * , 7 1 9 7 , *

1 8 , 6

1 0 . 5 5 0 , 0

2 . 8 2 2 , 9 * . 7 5 5 , 6

9 . 1 * 2 , 5 1 . 5 9 5 , 2 1 . 2 5 5 , 2

2 . 0

7 5 . 6 7 0 , 0

2 . 2 0 1 , 7 6 . 0 1 0 , 0

5 0 5 , 0 60 ." .70 ,1 .

J . * * 6 , 0

1 6 J . 9 8 5 , 0

us» 1 .000 roB

1 7 6 . 5 7 1 , 8

2 1 . 5 0 6 , 2 0 . 0 7 1 , 2

1 5 . * 0 2 t * 8 1 . 2 5 1 , *

1 . 0 0 5 , 1 * 6 5 , 5

7 £ . * ? 8 , 5

2 . * 0 6 , *

2 0 . 0 1 7 , 9 J . * 9 0 , 7

* 2 . U 7 , 6

5 . 5 9 5 , 9 1 . 5 9 5 , 0

1 . 2 1 * , 9 1 9 2 . 1

l r 6 . * O i , o

5 5 . 7 ? 9 , 0 * 6 . 1 7 6 , 5 * 0 . 6 1 7 , 5

2 . « 2 7 , * 3 . 5 6 5 , 0

1 9 , 9

6 7 . 3 * ? , 7

2 . 7 6 7 , 0 2 0 . 0 8 7 , 8

l . * 0 5 , * 2*.OOO,2

O . * 0 5 , 5

5 9 6 . 9 5 5 , 9

1 9 7 7

TONNES

6 * . 0 6 0 , 7

8 5 0 , 7 6 . 5 1 2 , * 5 . 5 0 0 , 0

3 2 . 6 * 5 , 7 U 2 * 2 , *

3 0 * , 5

3 0 . 3 5 1 , 0

9 9 , 6 3 . 5 8 5 , 5

9 5 7 , 1 2 1 . 1 3 1 , 7

* . 3 2 * , 6 1*3,2

7 8 , 7 1 7 , *

1 8 . * 5 * , 1

2 . 0 5 * , 7 * . 6 f l 6 , 5 7 . 8 7 5 , 5 2 . * 2 8 , *

1 . 2 5 2 , 9 1 7 8 , 5

8 7 . I » » , '

1 . 2 9 2 , 5 8 . 3 0 2 , 1

t>71,5 7 5 . 7 5 2 , 7

5 . 5 1 0 , 5

2 0 0 . 0 6 2 , 7

u s f 1 .000 roi

1 7 0 . 8 5 5 , 6

1 7 . 1 5 9 , 1 1 9 . 6 7 1 , 9 l b . * 6 e , 0

1 2 0 . 2 6 3 , 2 3 . 6 5 6 , 6

6 3 * , a

1 0 0 . S ? 6 , 0

* . 6 0 * , 5 2 5 . O U , 6

* . 9 7 5 , 0 6 8 . 8 5 7 , *

2 . 9 5 2 , 2 1 . 0 5 6 , 6

9 1 1 , B 1 7 9 . 7

1 2 * . « 6 7 , 3

2 7 . * * 7 , 9 * B . 2 6 o , * * 0 . 6 b 5 , 7

5 . 7 1 9 , 5 * . 1 2 0 , *

7 * 8 , *

8 7 . 1 5 5 , 6

1 . 5 2 1 , 1 5 8 . 7 0 , 6

2 . 2 1 0 , 1 3 * . 5 5 7 , 5 1 0 . 5 1 2 , 5

> 0 0 . * 9 6 , 3

1 9 ~i

TONNES

6 7 . 0 2 ' ' , *

8 0 * , 9

1 0 . . ' 1 * , 2 1 . 8 5 2 , *

; 2 . 9 M - , 7 9 6 * . 5 2 û l , 7

5 1 . 7 a , a

1*5,7 3 . 0 7 3 , 6 1 . 0 / 8 , 6

2 0 . 0 1 1 , 7 * . 1 2 7 , 1

2 9 7 , 2 U 7 , 6

1 5 . 3

2 0 . t ( 3 ,6

2 . 6 J 0 , * * . | . 2 7 , 8

1 0 . 5 2 8 , 1 1 . 7 1 * , a l . * 2 2 , 0

1 6 1 , 5

9 2 . I C O , 8

* . 5 7 * , 9 U . 2 1 1 , 6

1 . 2 * 1 , 9 7 0 . r a , 7

* . 3 * 2 , 7

2 U . J 9 0 . 6

S

US I l . o o o roa

17->.**1.0

1 9 . 5 1 2 . 3 3 0 . 2 1 9 , *

9 . * 2 6 , 0 1 1 7 . 0 9 7 , ?

3 . 0 0 5 , 8 5 1 0 , *

1 1 9 . 1 5 2 , 6

6 . 8 1 . , 8 3 1 . 0 1 3 , 0

6 . * 1 0 , 6 6 7 . *8" . ,1

3 . 5 6 5 , 0 2 . 0 1 2 , 8 1 . 0 0 1 , *

1 7 5 , 9

165 .1 .57 ,6

* 2 . 7 « 0 , 8 5 1 . 6 * J , 5 6 1 . 0 - 7 , 9

2 . 7 6 Q . 5

» . 5 0 0 , « 95- . ,9

1 C 6 . 1 ? ' » , '

* . 7 9 7 , 0

* 7 . 1 C 7 , 6 2 . 1 2 b , 3

5 0 . 1 - C . 9 1 3 . 5 0 J . 7

J 6 a . 2 2 0 , 3

BHAZIL - IHfliHTS l# HACHIlifcHÏ gojj Ï I IK T l U T l L t IUbU^THÏ

n o i i c T i

A - M a c h i n e s a n d e q u i p m e n t : ftatrualon. t - r o c e a s l n g a n d S p l n n l n g

1 - fculiubl.n e q u i p m e n t

2 - C l b r e - c u l t 1 n g , b r e a k i n g a n d p r u c o a a l n g e q u i p m e n t î - S l l k - p r o c e o a l n g ( p r e - t w l s t t r i g ) e q u i p m e n t

9 - E q u i p m e n t f o r r e c o v e r y o f u a l t a o o r d , y a r n , « l u . 5 - C o t t o n J l n n l n g m a c h i n e r y a n d e q u i p m e n t 6 - E q u i p m e n t f e r p r o c e a a l u g o t h a r p l a n t f l b r a a

7 - B a l a - c u t t l n g m a c h i n e r y a n d a u t o a i a t a d f a a d a r a 8 - O p e n e r s a n d b e a t e r a

9 - C a r d m i n e r a

I d . C o m b i n g m a c h i n e s 1 1 - D l a o o n t l n u o u a s p i n n e r s

1 - W a r p a r a

15 - S m o o t h - a n d c o a r a e - s p l r u l i n g m a c h i n é e

14 - S p i n n i n g J e n n l e a

1 5 - T w i s t i n g f r a m a i 1 6 - B o b b i n - f r a m e s ( l n c l . a u t o i u . )

1 7 - H a e l a r a

1 6 - M a c h i n e r y f o r t h e p r o d u c t i o n o f s t r i n g , r o p e , e t c .

1 9 - o t h e r m a c h i n e r y ; p a r t a a n d o o a p o n a n t s f u r t h e a b o v e

B - W e a v i n g m a c h i n e » , m a c h i n e r y f o r t h e p r e p a r a t i o n o f w e a v i n g o p e r a t i o n s , f o r f l u t i n g f a b r i c s , f o r s t i t c h i n g

1 - S l i e r s

2 - B e a m i n g f r a m e s

5 - D r a w e r - s t l n k e r a 4 - A u t o m a t e d , a r p - k n o t t l o g m e c h l n e r y

'> - " . ' i l , u t i l e l e s s " l o o m a

6 - A u t o m a t e d o n e - a h u t t l e l o o m a , b o b b i n - c h a n g i n g

7 - A u t o m a t e d o n e - a h u t t l e l o o m a , a h u t t l e - c h a n g l n g

8 - A u t o m a t i c b o x l o o m a

9 - C i r c u l a r l o o m a f o r t u b u l a r f a b r l o a , o t h e r t h a n k n l t t e

1 0 - O t h e r l o o m a f o j - f l a t w e a v i n g 1 1 - L a d d e r - m e n d i n g m a c h i n e s a r i d e q u i p m e n t

1 2 - K n i t t i n g m a c h i n e s , h a n d - o p e r a t e d

15 - K n i t t i n g m a c h i n e » , p o w e r - u p e r a t e d

14 - l i n e a r l o o m s f o r h o a l e r y

1!) - L i n e a r l o o m a f o r J e r s e y - m a k i n g , e t c .

16 - c i r c u l a r l o o m s 1 7 - A u t o m a t e d e m b r o i d e r i n g m a c h i n e s 1 0 - C i r c u l a r l o o m s f o r b r a i d i n g

1 9 - C u r t a i n , n e t a n d g a u s e - w a k l n g m a c h i n e r y

2 0 - I n d u s t r i a l a e w l n g - m a c h l n e s

2 1 - o t h e r - M a c h i n e * ; p a r t * a n d c o m p o n e n t s f u r t h e a b o v e

I 0 T A L

1 .

Ù I U K 7 J -

E O l

*> 5 t

1

* 1

24

y.

9 ' 1 0 1

« 1

> 1 ) 0

52

1 5 »

1 W

) U

W 2

-

e t c

» 5 e

5

7 7 t l ( .

4 7

1 1 >

I C I

i i : » i .

i n -

?o<

2 1

7 ro5

l . L l t -

i i

9 6 1

1-0

« 0 . 2 0 1

--

, 7 1

U M 1 . 0 0 0

c i r

2 . U I t . r l H

2 1 ?

7 )

1 1 1

•>/;

1 . M O

>.<.:'. i . i - - : .

1 " ' l . i i l

L / i i i

5 . 4 - 0

I S . 9 / 7 1 2 . 2 B 4

1 . 0 1

?(.

1 7 . 7 1 . 1

»(•<! 1 . 0 / 1

I S 2 / 2

1 0 . 1 i ?

5 . " 1

5 1 4

l . M ' . '

U 9

5 0 2

2 2 1

1 »

? » V

7 2

» . l » l

2 5 . 7 1 7

»0<

«L

) 5 0

1 1 . 9 4 ) 2 5 . 4 < , o

l i O . V J »

1 .

J U A H I l -

cu-c

IJ i>7 2 1

7

1

L5

2 1

t ?

> ) t

1 2 )

?

2 0 7

U

1 1 1 1 7 0

7oo l > e

t

-

^ 1 5

) fc*

4 1 4

4 0 9

2 « o

1 O 0

l é

* 0

2 7 9

ti.U-7

2 ' .

1

2 V j

l.ooo « 1

0 2 7

9 4 1 , 2 ) 7

--

»74

O i l 1 . 0 0 0

c i r

5 . > t 4

5 . 1 ) 4

w.u U Ï

.-v 2 75-

1 . 0 5 7 2 . n t 2

7 . 7 4 t

2 . ? v ' l

1£<>

2 . l i t

J O . 1 1 2

a . >22

2 ) . » U

1 . 4 4 7

7> H . O u

> 7 1

1 . 4 2 B

a > 7 0

a . 1 0 2

A . C ) >

5 . 5 7 5

2 . 0 O 2

2 1 )

l . * C 2

2 1 t

« O

2 1 1

4 P

5 . ) L 5

2 » . . 2 ? c

/ - J

? «

1»

l t . 5 5 ? 4 0 . 1 1 5

2 1 2 . s o t

1

0 0 U . T i

ll «DC

»k

tu> A

_ S

2 t

1 1

1 2 4

2 4 ?

1 2 )

-I l l

1 ) 1

7 ) ' ,

t l 7

7 t 9

4 0 »

1 *

-

7

» ?

14

1 1 • 0 4

1 . 4 > «

2 9 7

2 2 1

2 1

1 7

«> J . O i " ?

1»

9

1 7 *

9 1 4

» 0 1 2 0

« 4

1 7 . 4 5 1

- | - 1

1

4 7 5

usi l.ooo c i r

5 - t O o

5 . 0 1 1 •X.

4 1 2

1 0

6 1 )

1 . 1 4 7

) . I S t

« . t o 7

1 . 4 8 7

-t . 4 1 0

t . L 4 1

2 J . 5 5 C

1 0 . 7 6 0

2 0 . 0 7 ?

2 . M . 7

1 1 9

1 2 . 2 2 7

7 ) 4

*•»•« l a i

1 1 '

1 7 . 9 0 7

u.">^> J . J 4 )

4 . 0 / 4

1 ) 1

1 0 1

ao ? . »

4 1 1

2 7

» . ) > ) 1 5 . H I

Too 5 ' <

7 7

I t . 1 5 1 4 4 . 1 M

? t 0 . 4 0 7

» C'JAI.H-

o i o :

H

1 1

->

ft u so

>1>

4 ?

• 2 7 1

U 2 5 0

t ) 4 4 1

la»

--

a K4

7

1 7

5 0 3

1 . 0 4 1

-I t

)) 1 2 1

t a l i

1»

) 1 4 )

2 1 5

5 t

1 2

I I 4 5 . 1 , 0

--

t n

ust l.ooo C L f

1 . M 2

1 . 1 2 t

-2 2

1 . 4 0 . 1

1 . 1 1 0

l . P u c

1 1 . 5 0 0

2 . 2 1 t

1 ^ )

5 . 7 1 1

1 . 7 - »

1 4 . 7 > » 7

4 . k 2 1

1 0 . V>0

l . f i l

-1 7 . 1 9 7

«407

l.LM 4k

l * a

1 7 . H 5

1 5 . 5 7 2

->v l t 4

1 . 1 2 0

3 5

1

1 7 4

2 1

l . l t l

A . 5 0 7

7 0 S

r>t tea

i i . : > o 4

2 1 . 4 4 2

I t 9 . 2 t 4

l . » 7 7 ( 1 )

j u i : . n -

b i X

2

2 )

1 )

1

2

2 4

1 )

115 2 )

1 t o

I t

U to

2 7 0

2 )

1

-

1

2 »

9 4

4 2

1

2

4

2

1 0

1 I t

-4 1

12

5 1

1

1*9 1 5 . 4 9 2

--

us( l.ooo roi

6 7 , }

1 ) 9 , 1 7 0 1 , 1

1 . 5

1 1 7 , )

l . t o t , »

C / u , s

).«7* O) C J A . . U -

0/oQC

5 . 1 2 C , 5 [

l . l f S . 7 i

ust l.oco rc i

2 . 1 5 1 , 1 5 . 6 4 2 , «

-) > 4 . )

4 1 , 1

1 7 = . 1

' 1 » . ? 2 . » ! » , »

1 . 5 1 1 . 5 2 : 1 , 4 l ' . » , o

1 . 1 1 ^ , 1 1

1.27»,a j l . » P l . l ! 1 . 7 7 ? . 4 |

a. >-«.« 1 7 5 , 0

4 2 . »

1 1 . 2 4 1 , 5

> 7 l , >

i.f K O . l

2 . » » t , 5

» - ' > . l

1 0 . 5

7 7 , 1

1 5 . 0

1 1 . 9

l i . f

0 . 1

U , l )

-1 . 1 - 5 . 7

A l t , 4

2 . 4 * 1 , 1

1 5 , 7

t o , , t 1 0 . » 5 C , 4

l a . i t o , »

a j . i t o , 2

7 ^ , 7

» o » , «

ueo . , f 2 5 7 . t

a.t«7,a 7 C 7 , »

1 » , 4

I t . 2 S 2 , 9

-7 7 , 9

-2> 1 . 2

5 . 9 : 1 . » U , 5

5 V . , 5

n ,4 5 4 1 . 1

2 « , 1

-1 1 5 . 1

-1 . U 5 . 7

• - • - " . 7

i . t : : , 2 . " • . • : . «

1 . 7 ? " , , 2

2 . " . 0 ( 5 , 0

2 0 . 5 T 1 . »

V . ) o a , i

BRAZIL - PRODUCTION OF TEXTILE FIBRES

Year

U<*>>

i . 9 «

1.965

1.966

1.907

1.96e

1.969

1.970

1.971

1.97?

1.97>

1.97*

1.975

1.976

1.977

1.978

Motes :

Cotton

4 ? b , 7

504 ,0

4 50 ,0

5*0,0

4 4 5 , 0

617 ,0

721 ,0

580 ,0

595 ,0

680 ,0

651 ,0

555 ,0

5 V . 0

400 ,0

590 ,0

*33,0

( a ) Ei

Kaw wool

1 2 , 1

. 2 6 , 3

5 1 , 0

5 4 , 6

2 6 , 1

5 0 , 5

5 8 , 5

56 , »

5 9 , 5

56 ,5

5*.2

2* ,4

2 7 , 1

27 ,2

2 5 . 5

2 6 , 9

deluding

Natural

Ramie

8,5

1 0 , 2

1 2 , 5

1 0 , 0

1 8 , 0

2<i,0

2 6 , 0

2 9 . 5

5 0 , 0

50 ,0

2 7 , 5

2 7 , 0

2 4 , 0

1 8 , 5

1 5 , 8

».s

for cig

Si lk " t h r e a d

o , u

0 ,09

o , u

0 , 1 5

0 , 1 5

0 , 1 9

0 ,22

0 ,26

0 ,52

0 ,59

0 , 5 *

0 ,70

I t *

I f ?

1,12

1 , 1 *

i r e t t e f

Jute

5 6 , 0

6 5 , 2

7 5 , 8

59 ,9

W . l

6 5 , 0

5 2 , 7

7 1 , 0

5 9 , 8

7 5 . 1

9 1 , 8

6 6 , 8

76,1.

8 5 , 1

0 5 , 5

7 5 , 0

l i t e r s .

Total

55>,4

604 ,5

5 6 9 , *

652 ,6

555 ,»

7)6,7 8 5 8 , 4

717 ,2

72», 6

8 2 2 , 0

8 0 5 , 0

655 .9

6 6 0 , 7

529 ,8

7 1 5 , 5

5 9 9 , 5

A r t i f i c i a l (6>

Staple

55 ,7

> * . •

».* 5 9 , 0

V7.6

4 5 , 8

4 0 , 5

5 9 , 6

* 5 , 1

0 , 9

50 ,5

4 5 , 6

4 2 , 8

4 7 , 5

4 4 , 7

4 2 , 6

Aeetate (a)

5.9

Total

5 5 , 7

5 0 , 5

4 6 , 5

Nylon

8 ,4

9,«i

1 0 , 6

1 J . »

1 2 , 8

1 7 , 5

1 7 , 7

2 * . 5

27 ,4

55 ,6

4 0 , 0

*>,o

4 9 , 8

56 ,6

60 ,4

60, J

Synthetio

Polyester (b) 2 . 0

».o

» t »

5 ,9

5 ,5

9.» U . l

1 6 , 6

2 0 , 9

5 5 . 1

> 5 . 9

6 1 , 5

6 5 . 6

8 5 , 0

8 ) , 4

9 5 , 1

A c r y l i c

-----

0 , 7

1.0

2 . 9

4 . 1

6 ,5

9 ,2

1 1 . 1

1 2 , 2

15 ,2

1 4 , 0

16,4

Others 0 )

----

0 , 1

0 . 7

1.6

2 . 7

».o

1 5 , 1

1 4 , 8

2 0 , 2

2 5 , 5

5 5 , o

4 0 , 4

(6 )

Total

10,4

1 2 , 6

1 » . *

1 9 , 2

1 8 , 1

2 7 , 5

5 1 . 5

4 5 , 6

5 5 , 1

7 7 , 2

116 ,2

150,4

145 ,4

1 7 8 , 1

190 ,8

218 ,2

TOTAL

602 ,7

6 5 7 , 5

622 ,2

7 1 7 , 7

6 1 6 , 7

817 ,4

918 ,5

8 1 0 , 7

8 5 2 , 9

955 ,7

9 0 0 , 5

8 5 8 , 0 ^

855 ,5

^ 1 , 6

956 ,8

a t>*,?

COM.TEX;

S

(b) Including continuous, high resistence, industrial filament. (c) "Olefincal" and "elastomer".

/

I

I I

V

- REGENERATED

1 - STAPLE VISCOSE

2 -

- SYH

1 -

2 -

3 -

4 -

5 -

T e x t i l e f i l a m e n t I n d u s t r i a l f i l a m e n t F i b r e

RAYON ACETATE (FILAMENT)

THETIC

NYLON

T e x t i l e f i l a m e n t I n d u s t r i a l f i l a m e n t F i b r e

POLYESTER

T e x t i l e f i l a m e n t i I n d u s t r i a l f i l a m e n t F i b r e

ACRYLIC (FIBRE)

OLEFINIC

F i l a m e n t R a p h i a s t r i p F i b r e

ELASTOMERS

T e x t i l e f i l a m e n t i

• i

Z 0 I A 1

1.070

47 .807

3' i .5?6

15.974 9.029

14.573

C.321

4 5 . 4 Ï 6

24.400

16.228 6 .421 1.851

16 .557

4 .000

12 .467

2 . P 5 Ï

l . ' . ' u

169 1.271

156

-

-

93.323

I

1.971

55.251.

4!-. 117

15.653 9.C35

IS .600

6 .117

5 5 . ^ 5

27 .396

18 .591 6.C36 1.9"9

20 .918

5.709 70

15 .159

4 .105

C.'.•?(>

15* 2 .362

260

-

-

10^.529

BRAZIL

•RODUCTION OF MAN-MADE FIBRES

1.972

54.1. r-4

1.^.953

17.2^5 10.060 17 .340

C.561

77.379

35.615

23.341, 6.C01 3 .270

53.135

14.005 05

19.055

hm 4.014

419 3.160

435

-

> j 111.773

1.975

59.54?

5-\504

20 .006 11.B56 1E.5Û2

e . e j a

1 )6 .162

39 .^69

26 .151 9.307 4 . 1 5 1

55 .951

27 .216 130

26 .593

0.2C9

ii.or>\

4c4 11.897

692

-

-

175.504

1.974

55.6C1

1^5.569

1B.2C6 9.570

17.783

6.112

130.454

43.049

26.754 10.7V3 5.522

61.540

31.105 IOC

30.329

11.105

14.7i.O

1.060 12.ICO

1.060

-

-

104.135

1.975

49.1 5'..

42.790

11.339 12.952 16.507

6.360

145.637

49.76"*

32.694 12.351

4 .722

63.550

34 .005 132

28 .553

12.196

l9.r.i->

1.4*0 16.500

1.672

360

360

194.343

1.976

53.70?

47.470

12.304 19.633 15.355

6.252

17C.065

56.608

36.058 15.170

6 .60 J

62.064

43.083 140

39 .741

15.199

22.033

9C2 19.440

2 .590

360

3 6 0

231.765

1.977

5 0 . <•*><;

4...C/3

11.693 11.075 21 .7J4

5.707

190.71.5

60.302

5 0 . ? : e 15.145

6.951

f5 .576

J9.-A-2

no 43.304 15. cô9

S2 . i )B

1.023 26.328

3.267

4C0

241.204

.

1.978

1 , 4 ; . .5?«

4? . t : . 3

1 3 . 1 0 ; 0 .070

22 .307

5 . M 2

2 i e . ? s

(0 .537

43.912 16.402

7.925

OÏ.1MT

42.t>79 24 6

16 .^07

4C.CX

1.500 54.00C 4 . 3 : 0

4f...

4 0 3

264.773

BRAZIL - INDUSTRIAL CQNSWPIIUN Ut lEXf | |£ MURES

( '000 Tons)

Year

U 9 * )

l . ' / A

1 .9*}

1.9**

1.9*7

1.9*»

1.9*9

1.970

1 .97 i

1.972

1.971

1.974

1 .97)

1 .97*

1.977

1 .971

Natural

Cotton

2 7 * , »

2 * 7 , 7

2 7 0 . )

2 1 ) , 0

2 7 0 . 0

2 0 ) , }

2 0 0 , *

2 9 1 . )

2 9 * . 1

> 2 ) , 0

» 7 9 . »

) 9 7 , 0

* 2 0 , 0

* * ) , 0

* * } , 0

>10.0

Scoured | Flax/ w00) i Raaie

1 2 . *

» . 7

7 . 9

*.) 9 , 1

10 , •

1 1 , 0

D . »

1 1 . 4

1 ) , 2

»> ,0

U . O

» . 9

1*.»

1 1 , 1

1 1 . 7

7 . »

9 ,2

1 0 , }

1*,»

U . O

1 9 . 0

2 0 , 0

2 ) , 0

2 * , 0

2 » , 7

2 1 , 1

2 0 , 0

1 » , }

1 1 . 1

" . >

» . 9

Silk Thread

o . i

o . i

0 . 1

o . i

0 . 1

o . i

o . i

o . i

0 , 1

0 . 1

0 . 1

o . i

0 . 1 2

0 , 2 *

. .»

Jute

}* ,0

*>.*

7*.4

».» *>.» U . O

} 1 . )

7 4 . 7

4 2 . 7

*>.* 1 0 1 , 0

»*.• 107 ,7

* . »

0 » , )

7 > , 0

XOIJkL

) } 1 , 1

1*9.0

1*1.4

) * ) , 0

» ) * , 7

) 7 7 , *

}71 .2

* 0 * , 9

1 9 0 , 1

4 4 ) , 4

1 1 9 , 1

1 2 2 , 9

} } ) , 2

J 7 1 . 2

1 1 ) , 2

* 0 7 . 9

Regenerated

Acetate

J j 4

Staple

)».7

>*.»

) 2 , 4

)».»

> 7 , *

**,)

* 0 , 7

» 2 . 0

*».*

* J . »

1 1 . Î

) 2 , 4

» * . }

* 7 . 1

4 1 , 1

lOIAi.

. » 9 . 1

4 0 , 0

4 } , 7

a.» » 9 . 1

>o.*

1 7 . 9

1 2 . 1

to.» * 1 . )

" . 9

1 1 . 7 »>.4

Synthetic

«no*

».*

9 . *

1 0 . *

1 ) . *

1 ) , »

2 0 . )

1 » . 7

2 » , 7

» 0 . 9

> 9 , 1

**.»

1 7 . 4

t o , *

* » . 7

7 ) . 9

7 4 . 0

Polyester

* . i

».»

>.* 4 . 1

*.> 11.»

14 .»

» 2 , }

17 .2

4 » , t

4 » . »

7 » , *

4 7 , 4

• »,»

• 7 . 2

9 1 . »

Acrylic

0 , 1

0 . 1

° « l

0 .4

*.* *.»

* . 9

• . 7

1 0 , 1

1*.7

1 » , 2

2 1 , 1

1 3 . »

2 0 , 1

l e . s

J » , 4

Other ( 2 )

0 . 1

0 . 7

1.4

* . 7

».o l » . l

1 4 , 0

2 0 , 2

»),»

1 1 . 0

* 0 . »

IUDU.

10 .»

" . »

1 4 . 4

1 9 . »

2 4 . »

>*.7 .

VI.»

4 1 . »

• 2 . 1

104 ,4

1*1.»

1*7.»

1*) .»

1 9 1 . 4

i l * . »

22* , •

Grand total

4 0 1 , 0

4 0 2 , 7

* 1 * , )

4C8.»

4 2 * , 7

4 * 9 . )

4 ) 9 , 1

517 .0

} ) « , )

* 0 * , )

7 2 2 , 2

712 ,1

7*0.0

a/o.) « 1 9 , *

0 7 0 , 1

FONTEs- Slndlcato da Industrie da Fiaçâo e Toceloyem cm Ceral, no Estado de 6âo Paulo

OUSERyAÇÔESi- (1) - Flbras nâo consideradas por lndUponlbllldade da dados - GuaKima, Sleal, Tucura a Caroi

(2) - Olefinlcaa e Elaatomeroa (LYCRA)

BRAZIL - INDUSTRIAL CONSUMPTION OF RAW COTTON

('OOO tons)

S T A T E S

1 — A l J f O * ,

2 - BkM.»

5 - C«»r»

4 - K l n u G o r t l *

5 - P«x*ib»

C — F u u i i

7 — >N> rnn-tbuoo

B — Rio Am J a n a l r o

9 - Samta Ca.tu-in>

10 — Sao Paulo

11 - S*;-gip»

12 — Oulro i

I 0 ï A 1

1.969

* f »

M

3 ,9

4e,4

>»>

* , 6

1 7 , J

4 0 , 6

1 6 , 1

150,5

5 .»

2 , 9

2C8.Û

U 4 7 0

M

M

5 .*

4 7 , 1

2 , 6

M

10,6

56 ,5

1 7 , 5

158 ,6

5 . "

3 ,5

291,5

1.971

* . 9

5 , 0

6 ,0

5 0 , 0

4 , 0

*,*

2 1 , 6

5 5 , 0

2 2 , 5

155,9

5 , 0

1.7

2 9 i , l

1.972

5 , 0

*,*

6 , 3

« , 0

5 ,2

3 ,5

2 4 , 0

5 5 , 6

2 5 , 0

155,2

6 , 1

1.9

525,0

1.975

*.7

Sti

l l . 2

6 5 , 0

6 , 9

7 ,6

2 6 , 2

« , 7

26 ,6

175,4

M

5.»

579,5

1.974

4 , 0

7 ,2

11 ,2

6d ,5

9 , 1

6 ,5

27 ,4

*2f5

3 2 . 7

174,2

7 ,2

5 ,9

597 ,0

U 9 7 5

* . '

7 , 5

H , 2

7 6 , 6

6 , 6

1 1 , 1

2 6 , 5

41 ,6

5 7 , 6

1 7 7 , 7

7 , 5

* , 5

420 ,0

1.976

M

7 , 5

16 ,5

6 0 , 1

1 0 , 9

U3.5

2 9 , 2

« . 5

4 7 , 6

161,2

7 ,5

* , 6

445 ,0

1.977

* . 9

7 ,5

16,2

79 ,»

10 ,6

12 ,5

2 6 , 9

42 ,2

* 7 , 5

165,4

7 ,5

* . 7

445 ,0

1.976

5 , *

7 ,9

1 7 , 5

95 ,5

12 ,9

12 ,0

36 ,5

* 5 , 5

51 ,6

2ia,c

9 , 1

* , 9

510 ,0

c_n X

INDUSTRIAL DEVELOPMENT COUNCIL

APPROVED PROJECTS CONCERNING THE TEXTILE INDUSTRY

(Fixed investment in - CR$ «OOO)

SûTO'Cr I!.DU3TB1»1S

I

I I

I I I

IV

V

V I

- Man-made t e x t i l e s

- Spinning, weaving. f in ish ing

- Knitted f a b r i c s : k n i t t i n g , f in ish ing and knitwear manufacturing

- Hosiery

- Texturing

- Tex t i l e s p e c i a l t i e s

T O T A L

i . ' * 9

2 1 5 . 7 8 3

1 0 4 . 0 ) 0

47 .544

1 2 . 9 * 0

1 2 . 9 7 7

5 2 . 0 0 )

4 2 5 . 9 ) 5

1.970 |

? 0 0 . 2 0 f

2 0 7 . 0 0 7

9 1 . 7 0 *

1.0B5

2 . M O

5 0 . 5 ) 5

sn.iu

I.VTI

571 .409

194 .009

2 0 . 0 5 )

2 . 5 4 J

1 2 . 9 5 7

m . 5 ) 9

7 ) 7 . 7 0 5

1.972

295 .507

4 1 4 . ( 4 4

1 9 4 . 9 ( 1

1 .92(

00 .959

( 0 , 1 9 0

97k .0*7

1.97» 1

052 .200

1.5(2.597

515.550

9 .201

7 0 . 7 2 9

1 9 4 . V *

5 . 1 9 3 . 2 ( 1

1.97V

2 5 7 . *>59

? . 0 9 » , m

1 2 0 . 4 ( 2

2 . 9 2 0

2 . 9 »

1 ( 4 . 0 1 4

2 . 0 ) 2 . 0 2 1

1.975

4 . 7 ) 0

090.504

9 .790

-

1 9 . 0 ) 9

1 5 5 . 0 0 )

006.054

1.974

79 .554

4 0 5 . 0 7 7

-

•

-

5 1 . 0 9 7

594 .500

1 .9 /7

-

117 .909

-

-

117 .989

1.Ç70

15 .204

97.56)

112.5(7

Oboorvaçooi- 0 levontoaooto oupro ooo obroogo oo UYOOtiaoatoo rooliaodoo ooa o intorvtnitocio do C.D.L.

BRAZIL - TEXTILE INDUSTRY

Yoar Numbers Employed

1962 365.753

1963 342.360

1964 342.364

1965 311.699 1966 324.443

1967 350.332

1968 353.654

1969 233.456

1970 297.713

1971 310.539

1972 319.749

1973 371.356

1974 354.304

1975 355.763

Nete: Excluding t h e c l o t h i n g and f a b r i c manufacturing s e c t o r .

" 1 pi m in

n u :< H

ON f j •0 X

H

<:<

COM.TEX/16

TEXTILE INDUSTRY

ELECTRICITY CONSUMPTION IN THE AREA SERVED BY THE "LIGHT" ELECTRIC CO.

YEARS

1 .968

1 .969

1 .970

1 . 9 7 1

1 .972

1 .973

1 .974

1 .975

1 .976

1 .977

1 .978

CONSUMPTION MWH

1 . 0 9 8 . 6 4 6

1 . 1 9 7 . 2 8 5

1 . 2 2 5 . 3 2 8

1 . 3 8 1 . 0 0 3

1 . 4 3 0 , 8 9 0

1 . 5 1 5 . 8 5 2

1 . 6 1 6 . 8 5 8

1 . 6 5 4 . 3 1 0

1 . 7 5 5 . 0 0 8

1 . 6 9 4 . 6 6 0

1 . 7 1 1 . 4 7 2

CONSUMPTION GROWTH

-

9 , 0

2 , 3

1 2 , 7

3 , 6

5 , 9

6 , 7

2 , 3

6 , 1

( 3 , 4 )

1 ,0

RATE OF GROWTH

(1968 = 100)

1 0 0 , 0

1 0 9 , 0

1 1 1 , 5

1 2 5 , 7

1 3 0 , 2

1 3 8 , 0

1 4 7 , 2

1 5 0 , 6

1 5 9 , 7

1 5 4 , 3

1 5 5 , 8

NOTE: "Light" Electric Co. serves the main industrial areas of Brazil

COM.TEX/16

CANADA

Adjustment in the Canadian Textile Industry


In the first half of the 1970's there was significant autonomous adjustment in the industry in response to steady growth in import competition in the domestic market. In particular, a number of individual manufacturers vacated the low-end of production such as cotton spinning where import competition was the strongest, and concentrated on production in the middle and higher price points, resulting in improved productivity from higher levels of output.

The following autonomous adjustment processes have been identified in the Canadian textile industry:

(i) Trend towards more product rationalization by concentrating production on long-run items to improve productivity.

(ii) Trend towards increasing industry rationalization in certain sectors of the industry, e.g. man-made woven fabrics and knitting.

However, a number of smaller establishments were less capable of adapting to sudden surges in low-priced imports. Between 1971 and 1977 the total number of establishments declined from 998 to 913. Out of these 85 establishments that, vent out cf business, a large number were producers of the low-end cotton fabric line. These adjustments are reflected in a decline in employment from 77,200 in 1971» to 72,700 in 1977.


(i) Measures specific to the textile and clothing industries the 1970 textile policy

In response to mounting pressure on the Canadian market by imports from low-cost countries, the Government introduced a national Textile Policy in May 1970. The purpose of this Policy was to create conditions in which the Canadian textile and clothing industries could continue to move progressively towards viable lines cf production on an increasingly competitive basis internationally. The policy comprised elements designed to foster development and efficiency in the Canadian industry and to accord special measures of protection against low-ccst imports in cases of serious injury or threat

COM.TEX/16

thereof, subject to the submission of acceptable adjustment and restructuring plans by the affected companies. However, the policy precluded the use of such measures of protection to encourage the maintenance of lines of production which had no prospect of becoming viable in the years ahead. In this way, the Government's policy with respect to adjustment could be interpreted as an incentive for the autonomous process that has been ongoing in the industry to be strengthened.

The central feature of Canada's Textile Policy was the establishment of the Textile and Clothing Board as an independent body responsible for enquiries into situations involving possible injury to Canadian companies and workers. The terns of reference of the Board in conducting injury investigations and the instruments designed to implement Board recommendations are consistent with international agreements. The Board's recommendation for any special measures of protection must be linked not only to proven* serious injury or threat thereof, but also to evidence that domestic producers have prospects of continued viability and competitiveness in the Canadian market.

(ii) General programmes

(a) The Enterprise Development Programme

EDP is a general assistance measure integrating various programmes, which were previously administered separately, including the General Adjustment Assistance Programme (GAAP). The focus of the overall EDP is to assist companies in undertaking a variety of projects including innovation and restructuring.

Pursuant to the 1970 Textile Policy, the coverage of GAAP was broadened with respect to the textile industry to assist in the implementation of the approved restructuring plans and to provide special assistance in cases of injury. Assistance was made available in three forms: government insurance against the risk of loss on loans made by private lenders for the purpose of financing viable restructuring projects; direct government loans to eligible applicants in special cases; and grants covering up to 50 per cent of cost to manufacturers who require outside consulting assistance to develop restructuring proposals.

COM.TEX/16

(b) The Adjustment Assistance Benefits Programme

The programme for textiles was established in 1971 to assist workers whose jobs are lost due to import competition or restructuring. Expenditures under the programme for the two industries as of 31 August 1979 totalled $8,288,378 for 770 workers, of whom k6k are presently receiving benefits.

(c) The Regional Development Incentives Programme

The Regional Development Incentives Programme provides grants and loan guarantees to eligible companies in order to encourage modernization of manufacturing or processing operations in certain designated areas.

(d) The Textiles and Clothing Consultative Task Force

In encouraging the adjustment process, the Government has placed significant emphasis on direct communication with the industry. In this context the Textile and Clothing Consultative Task Force was established. The Task Force has recently presented a number of recommendations for Government's consideration dealing with continued consultation efforts, efficiency improvement programmes and fiscal, trade and competition policy. The Government has presented its initial response to these recommendations and is actively reviewing many in greater detail as part of the Government's commitment to ongoing consultation in policy and programme development.

(e) The Federal Government Incentive Programmes and Trade Policy

The Government is presently considering the benefits to be derived from the implementation of a programme which encourages the textile and clothing industries to hire outside consulting expertise for comprehensive audits and provides assistance for the implementation of restructuring programmes.

A new incentive programme was announced in May 1980 for the textile and clothing industries in Quebec. The four-year programme will encourage firms to increase productivity, adopt new technology and move to more viable lines of production in order to increase competitiveness and profitability.

A similar programme on a smaller scale had been introduced for these industries in Ontario in March. The two provinces account for the large majority of production and employment in these industries, with Quebec accounting for almost 60 per cent of total employment.

COM.TEX/16

C. Increasing access to the market

On 1 July 1978 a GATT Article XIX global import quota on acrylic yarn was replaced by a series of bilateral export restraint agreements which were concluded with major low-cost suppliers of clothing to the Canadian market. This resulted in an increased access to the Canadian market of imports from all the unrestrained sources. The above adjustment process within the industry created favourable conditions to enable the Government to move into bilaterals under the MFA, providing for rates of growth, swing and carry-over/ borrow-forward.

On 9 October 1979 the Government also lifted a GATT Article XIX global import quota on double knit fabrics. This increased access to the Canadian market of imports is best exemplified by the decreasing number of imports that are subject to restraint. In 1979 slightly under 6 per cent of all imports of textiles were under restraint. This compares to lU.8 per cent in 1977.

Adjustment in the Canadian clothing industry


In the first half of the 1970's there was significant autonomous adjustment in the industry in response to steady growth in import competition in the domestic market. The fact that special measures of protection were not invoked except on a very limited range of products, maintained the momentum for this adjustment. In particular, a number of individual manufacturers vacated the low end of production where competition was the strongest, and concentrated on production in the middle and higher price points, resulting in improved productivity from the higher levels of output. The industry also recognized the need to adapt to increased competitive pressures by introducing newer technology.

However, smaller establishments were less capable of adapting to sudden surges in low-priced imports. Between 1971 and 1977 establishments with less than fifty employees declined from 1,590 to 1,27^. At the same time as this rationalization of smaller producers was occurring, there was a consolidation of the larger producers. Establishments with more than fifty employees declined very slightly from 57*+ to 563. These adjustments are reflected in a decline in employment from 118,500 in 1971 to 11,500 in 1977.

COM.TEX/16

B. Government measures to assist adjustment in the clothing industry

The Canadian Government, under the national textile policy enunciated in 1970, provided the Canadian textiles and clothing industries with a sense of direction in which they could continue to move progressively towards viable lines of production on an increasingly competitive basis internationally. As a prerequisite to special measures of protection against imports which have been found to cause or threaten serious injury, individual textile and clothing sectors are required to submit suitable plans involving the restructuring, phasing-out, upgrading of production or continued development along efficient lines. Such special measures of protection cannot be applied unless the sector concerned has prospects of becoming internationally competitive in the Canadian market without any special measures of protection.

The central feature of Canada's textile policy was the establishment of the Textile and Clothing Board as an independent body responsible for enquiries into situations involving possible injury to Canadian companies and workers. The Board's recommendations for any special measures of protection must be linked not only to proven serious injury or threat thereof, but also to evidence that domestic producers have prospects of continued viability and competitiveness in the Canadian market.

Thus, with the main thrust of the various Government assistance programmes being to make the industry more competitive, there has been a significant trend towards upgrading of production. Very positive results have been achieved so far although with the dynamic environment of international trade in clothing, there have been recent indications that further adjustment may be necessary since some major low-cost suppliers are moving into the higher price range with a substantial import penetration of the domestic market.

1. The Enterprise Development Programme

This programme is designed to assist companies in undertaking a variety of projects including innovation and restructuring. The EDP is a general assistance measure integrating various programmes, which were previously administered separately, including the General Adjustment Assistance Programme (GAAP).

COM.TEX/16 Page fh

In the context of the increasing import pressures, the clothing industry-has been in the forefront in the utilization of productivity enhancement assistance accounting for 28 per cent of the total number of projects approved and 13 per cent of the funds expended under the programme.

2. The Adjustment Assistance Benefits Programme

This programme was established in 1971 for the clothing industry to assist workers whose jobs are lost due to import competition or restructuring. Annual expenditures under this programme have averaged almost $1 million.

3. The Textiles and Clothing Consultative Task Force

In encouraging the adjustment process, the Government has placed significant emphasis on direct communication with the industry. In this, context the Textile and Clothing Consultative Task Force was established. The Task Force has recently presented a number of recommendations for Government's consideration dealing with continued consultation efforts, efficiency improvement programmes and fiscal, trade and competition policy. The Government has presented its initial response to these recommendations and is actively reviewing many in greater detail as part of the Government's commitment to ongoing consultation in policy and programme development.

U. The Federal Government Incentive Programmes and Trade Policy

The Government is presently considering the benefits to be derived from the implementation of a programme which encourages the clothing industry to hire outside consulting expertise for comprehensive audits and provides assistance for the implementation of restructuring programmes.

5. The apparel industries in Quebec, Ontario and Manitoba in conjunction with the federal and provincial governments, are developing formal programmes to enhance productivity in the clothing industry in order to improve its competitiveness in domestic and world markets. Presently, only the programme in Manitoba is operational. The programme in that province has been instrumental in helping those firms that utilize it to improve their manufacturing efficiencies. In Quebec and Ontario, studies are underway to form the basis for possible programmes. Although the benefits to be

COM.TEX/16

derived are difficult to quantify, these programmes will encourage the industry to improve its productivity; provide joint services which a large number of companies are unable to afford on an individual basis; and establish facilities to meet the specific needs of the apparel industry.

6. The Fashion Design Assistance Programme

The programme, as part of the 1970 textile policy, has been administered by Fashion Canada. The main objective is to assist and promote Canadian fashion design and designers. Financial assistance is provided to the Fashion Designers of Canada and Men's Clothing Designers for production of seasonal trend shows.

In addition there are a number of smaller projects and programmes which facilitate the adjustment processes within the industry. An Image Development project was initiated to promote sectors of the clothing industry. In co-operation with Provincial authorities and colleges, a programme to upgrade and maintain skills in fashion design is provided in Quebec, Manitoba and Ontario. In addition, the Apparel Design Professional Development Assistance Programme was established to provide direct financial assistance to professionals in the fashion industry to encourage advanced study in the field of design and related areas.

Finally, a scholarship programme administered by a joint industry/ government committee has been established to provide financial support to students, most of whom are currently employed by the industry. The intention of the programme is to attract qualified people with the requisite skills, training and education into the apparel industry and help improve the quality, depth and professionalism of management.


On 1 January 1979 a GATT Article XIX global import quota on clothing was replaced by a series of bilateral export restraint agreements which were concluded with major low-cost suppliers of clothing to the Canadian market. This resulted in an increased access to the Canadian market of imports from all the unrestrained sources. The above adjustment process within the industry created favourable conditions which enabled the Government to move to Article U arrangements under the MFA, providing for rates of growth, swing and carry-over/borrow-forward.

COM.TEX/16

COLOMBIA

Replies to the Request for Information in Airgram GATT/AIR/l6l2

I. STATE OF THE INDUSTRY

1. General information concerning Colombia's textile industry

Up to 1960} the textile industry headed the list of Colombia's industries in the generation of value added. Thereafter, the textile industry moved to second place in the generation of industrial value added, hut holds first place in volume of employment generated. In 1977, the textile industry accounted for l6.3 per cent of the total employment, 12.$ per cent of the gross production, and lU per cent of the total value added, of the • manufacturing sector.

The most important branch of the textile industry is cotton woven goods and manufactures,, which includes the production of cotton fabrics, cotton printed fabrics, polyester fabrics and other manufactures using cotton. This branch accounts for 52 per cent of the gross value added; 1*0 per cent of the jobs and 38 per cent of the investments of the textile industry. Next in importance come knitted goods, and the spinning; weaving and finishing of textiles, which includes three activities : ginning and preparation of cotton, spinning and., manufacture of narrow fabrics.

2. Employment

The number of workers employed in the textile industry increased by 12.7 per cent during the period 1970-7*+• In 1977, the labour employed in the textile industry was 3 per cent less than in 1970.

3. Prices

The annual average price index for the textile sector has risen more slowly than that for trade in general. Between 197*+ and 19783 the average annual increase in the general price index was

COM.TEX/16

23.1 per cent and the inflation rate for workers-consumers was 23-6 per cent whereas the price index for the textile sector rose by lh.6 per cent.

k. Foreign trade

Between 1976 and 1979 ; the value of Colombian exports of textiles and clothing increased by 3^ per cent, from US$226 million to US$303 million. During the same period., imports of textiles covered by the MFA rose by 165 per cent, from US$U9.8 million to US$132 million. Over the same period, imports of textile machinery increased from US$38.2 million to US$83 million. The textile sector thus showed a positive balance of US$176 million in 1976, and US$171 million in 1979» so that the surplus remained relatively static. If imports of machinery for the textile sector are taken into account, the surplus amounts to only US$138 million in 1976, and US$87-7 million in 1979- In other words, in 1979, imports of machinery for the textile sector absorbed more than half of this surplus.

Textile imports into Colombia have been considerably liberalized since the mid-1970s. Prohibition of certain textile imports has been abolished. This liberalization effort of the Government of Colombia is in contrast to the quantitative restrictions and other trade barriers being applied to Colombian textile exports by importing countries.

COM.TEX/16 Page J8

SIZE OF COLOMBIA'S TEXTILE INDUSTRY IN COMPARISON WITH ITS MANUFACTURING INDUSTRY

Number of establishments

Employees ('OOO)

Salaries and wages ('000)

Social benefits ('000)

Gross production ('000)

Intermediate consumption ('000

Added value ('000 J

Energy consumed ('000 KwH)

Manufac- _ . .. Manufac- _ ... - : Textiles : Textile turing turing

6348

456

16911

8918

202177

120445

81742

4204

493

76

2173

1432

23344

13632

10212

658

6671

484

33573

14950

359044

203143

155918

4847

491

79

46 01

2427

45132

23324

21308

789

COM.TEX/16

INSTALLED CAPACITY OF TEXTILE MACHINERY IN COLOMBIA

Item

Flat-type weaving and knitting machines

Circular weaving and knitting machines

Raschel machines

Tricot machines

Spindles

1976

15 .230

1.377

215

320

925.000

1977

15.420

1.530

228

359

940.000

1978

15.800

1.640

235

371

70 .000

Average annual inc rease ' in per cen'

1.7

9 .1

4 . 5

7 .7

2 . 4

COM.TEX/lb

CONSUMPTION OF FI3RES

DOMESTIC TEXTILE MARKET

(TONS)

Year Cotton Other -natural 3egeneraxed Synthetic Total

f ibres

1979 61400 3300 7000 48800 120500

1980 59800 3000 6500 55400 124700

1981 58200 2S00 6000 62100 129100

1982 56600 2600 5500 63900 I33f.00

1983 54300 2400 5000 76000 138200

COM.TEX/16 Page 8 l

TEXTILE PRICE INDICES

WHOLESALE PRICES IN GENERAL AND CONSUMER PRICES TO WORKERS

Year T e x t i l e s W h o l e s a l e p r i c e s Consumer p r i c e s

i n g e n e r a l t o w o r k e r s

1974 100.0 100.0 100.0

1975 108.7 125.4 123.6

1976 144.4 154.2 148.3

1977 152.7 195 .3 199 .9

1978* 1V >i. 6 229 .7 233 .4

Average annual i n c r e a s e (per cen t ) 1 4 . 6 2 3 . 1 2 3 . 6

Average i n d i c e s for t h e year

GROWTH OF EMPLOYMENT IN THE TEXTILES SECTOR

Year Employment index

1'9?0

1971

1972

1973

1974

1975

1976

1977

1978

100. 0

105.3

109.6

112.3

112.7

109.8

105.3

102.0

97.1

COLOMBIAN EXPORTS OF TEXTILE MATERIALS AND MANUFACTURES

(DOLLARS F.O.B.)

1974

1975

1976

1977

1978

1979

VALLEJO PLAN

Value

9 7 ' 1 7 5 . 048

61*346.243

9 4 ' 4 3 9 . 634

8 1 ' 4 2 8 . 676

100*234. 443

136*854.849

3 5 . 9

3 2 . 9

4 1 . 9

3 1 . 2

4 1 . 7

4 5 .2

OTHER EXPORTS

Value

1 7 3 ' 7 7 8 . 710

125*204. 414

1 3 1 ' 0 6 1 . 4 6 2

1 7 5 ' 5 5 7 . 394

140*078.415

165»907. 334

64.1

67.1

58.1

68.8

58.3

54.8

Source: Tabulations of Colombian Foreign Trade Institute "INCOMEX".

TOTAL

Value

2 7 0 ' 9 5 3 . 758

1 8 6 ' 6 3 0 . 6 5 7

225*501.096

256*986.070

240 ' 312 . 863

302 '762 . «83

100

100

100

100

100

100

P o » s n> • H

CO M U> X

1 9 7 6

1 9 7 7

1 9 7 8

1 9 7 9

VALLEJO PLAN

Value

31 '420 . 780

2 8 ' 2 8 0 . 160

28*361.765

34*328.844

21.0

18.8

26.8

38.3

COLOMBIAN EXPORTS OF TEXTILES

(1976 - 1979)

(DOLLARS F.O.B.)

OTHER EXPORTS

Value

1 1 8 ' 1 6 3 . 7 6 3

121*739.013

77*498.758

55*293.169

7 9 . 0

8 1 . 2

7 3 . 2

6 1 . 7

TOTAL

Value

149*584. 543

150*019.173

105*860.523

89*622.013

100

100

100

100

P o Ot) 3 fl> •

1-3 CO W

Source : T a b u l a t i o n s of Colombian Fo re ign Trade I n s t i t u t e "INCOMEX'

COLOMBIAN EXPORTS OF WOVEN FABRICS

(1976 - 1979)

(DOLLARS F.O.B.)

VALLEJO PLAN

Value

OTHER EXPORTS

Value

TOTAL

Value

1976

1977

1978

1979

4 2 ' 4 7 2 . 255

2 3 ' 7 4 0 . 400

3 8 ' 2 2 3 . 677

43 f 465 . 492

8 2 . 0

7 5 . 8

8 9 . 7

8 5 . 7

9 ' 3 2 7 . 802

9*148.662

4 ' 3 7 1 . 3 0 4

7*222.030

1 8 . 0

2 4 . 2

1 0 . 3

1 4 . 3

5 1 ' 8 0 0 . 0 5 7

37*889.062

4 2 ' 5 9 4 . 9 8 1

5 0 ' 6 8 7 . 522

100

100

100

100

Source: Tabulations of Colombian Foreign Trade Institute "INCOMEX' • f l p at) a

O ( S :-: ' i

C O M vn X

^ H ' •

COLOMBIAN EXPORTS OF CLOTHING

:. 9 7 6

1 9 7 7

i 9 7 8

1 9 7 9

VALLEJO

Value

2 0 ' 6 4 7 . 1 5 7

2 4 ' 3 8 1 . 1 9 0

33»825.420

59 '060 . 523

PLAN

%

4 7 . 0

3 5 . 5

3 6 . 9

3 7 . 0

(1976 - 1979 )

( D o l l a r s F .O .B . )

OTHER

Vs. l u e

2 3 ' 4 8 1 . 1 0 7

44 '260 . 137

57*938.334

100*687.269

EXPORTS

%

5 3 . 0

64. 5

6 3 . 1

6 3 . 3

Value

44 '128 .264

68 '641 .327

91*763.754

159*742. 792

TOTAL

%

100

100

100

100

CO

M.

Pag

e

1-3 COM

H G-

Source: Tabulations of Colombian Foreign Trade institute "INCOMEX".

COLOMBIAN EXPORTS OF TEXTILES

BY TYPE

( 1 9 7 6 - 1 9 7 9 ) (DOLLARS F . O . B . )

1 9 7 6

1 9 7 7

1 9 7 8

1 9 7 9

YARNS

129 '584 . 543

1 5 0 ' 0 1 9 . 1 7 3

105 '860 . 523

89*622.013

%

5 7 . 4

5 8 . 4

4 5 . 3

2 9 . 5

FABRICS

5 1 ' 8 0 0 . 0 5 7

3 7 ' 8 8 9 . 0 6 2

4 2 ' 5 9 4 . 981

50 '687 . 522

%

2 3 . 0

1 4 . 7

1 7 . 7

1 6 . 7

CLOTHING

44»128 .264

6 8 ' 6 4 1 . 3 2 7

9 1 ' 7 6 3 . 7 5 4

1 5 9 ' 7 4 2 . 7 9 2

19.6

26. 7

38. 0

52 .8

T O T A L

225 '501 . 096

256 '986 .070

240 '132. 863

302 '762 .483

loo

iOo

It) 0

loo

Source: Colombian Foreign Trade Institute "INCOMEX"

P o m S fl> •

crp. d

YFAR

1977

973

1979

IMPORTS OF TEXTILE PRODUCTS COVERED BY THE MULTIFLBRE ARRANGEMENT,BY IMPORT REGIME AND VALLEJO PLAN

( US$ )

TOTAL IMPORTS

Tota l

6 6 . 9 9 5 . 8 3 1

(100%)

9 0 . 2 2 7 . 0 3 4

(1 00%)

132 .303 .806

(100%)

V a l l e j o P l a n %

2 9 . 5 5 1 . 1 3 0

(100%)

3 9 . 4 9 5 . 1 0 8

(100%)

5 4 . 8 9 7 . 2 5 0

(100%)

44%

44%

4 1 %

FREE REGIME IMPORTS

T o t a l V a l l e j o P l a n

3 7 . 1 1 1 . 4 9 6

(55%)

5 7 . 7 3 9 . 0 3 3

(64%)

7 0 . 3 5 9 . 3 3 8

(53%)

1 8 . 9 6 8 . 7 70

(6 4% J)

2 8 . 7 2 2 . 0 5 5

(73%)

2 7 . 5 9 9 . 6 9 9

(50%)

50%

39%

" D O T ^ D 1 * PRIOR' REGIME TMTOr>TS

ED O

( l • 1-9

CD t?d OO ><!

ON

' •.'.,;, 1.33 5

(-15%)

:>:...i s s . o s i

(.u>%)

61.944.468

(47%)

V a l l e j o Plan

1 0 . 5 3 2 . 3 6 0

(36%)

1 0 . 7 7 3 . 0 5 3

(27%)

2 7 . 2 9 7 . 5 5 1

(50%)

r .

3 5 %

3 3%

44%

'Source : T a b u l a t i o n s o f Banco de l a R e p u b l i c a

1/ 13? headings were liberalized inl977. !tr"> items were shifted to the "Prior" regime at the end of 1979. 87 headings remained under the free import regime. The 13? free regime headings are included in the above date.

•

IWOilTg OK TEXTILE PKODUCTS COVERED BÏ THE HFA

(mi)

1

1 ; C M p . »

1 CM,. » i

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Chap. 60

1 C h a p . 61

i

DESCRIPTION OF OOODS

Man-maJe f i b r e s ( c o n t i n u o u s )

Wool

C o t t o n

K a n - n a J e f i b r e s ( d i s c o n t i n u o u s )

C a r p e t s , m a t s , m a t t i n g and t a p e s t r i e s ; p i l e a n i c h e n i l l e f a b r i c s , n a r r o w f a b r i c » ! t r i m m i n g s J t u l l e and o t h e r n e t f a b r i c s ! l a c e ; e m b r o i d e r y

Wadding and f e l t ; t w i n e , c o r d a g e , r o p e s and c a b l e s ;

s p e c i a l f a b r i c s ; i m p r e g n a t e d a n d c o a t e d f a b r i c » ; t e x t i l e

- . r t l c l e s o f a k i n d s u i t a b l e Tor i n d u s t r i a l u s e

K n i t t e d and c r o c h e t e d goods

A r t i c l e s of a p p a r e l and c l o t h i n g a c c e s s o r i e s

O t h e r made-up t e x t i l e a r t i c l e s

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TJ O »> O

n • 00

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Customs h e a d i n g D e s c r i p t i o n of goods

8 4 . 3 0 . 0 1 . 0 0 Machinery f o r e x t r u d i n g man-made t e x t i l e s

West Germany

U n i t e d S t a t e s and P u e r t o Rico I t a l y

Me t h e r l a n d s

O t h e r

8 4 . 3 6 . 0 2 . 0 1 C o t t o n g i n s

Un lWd J t a t e s

O t h e r

8 4 . 3 c . 0 2 . 99 O t h e r m a c h i n e s o f a k i n d u s e d f o r p r o c e s s i n g

t e x t i l e f i b r e s

N e t h e r l a n d s West Germany Be lg ium and Luxembourg

D n l t e d S t a t e s F r a n c a

I t a l y

S w i t z e r l a n d

U n i t e d Kingdom

O t h e r s

J a p a n

8 4 . 3 6 . 0 3 . 0 0 T e x t i l e s p i n n i n g and t w i s t i n g m a c h i n e s

S w i t z e r l a n d

West Germany

C z e c h o s l o v a k i a

U n i t e d S t a t e s Prance Italy

N e t h e r l a n d s

U n i t e d Kingdom

O t h e r s

Belgium and Luxembourg

6 4 . 3 6 . 0 4 . 0G T e x t i l e d o u b l i n g , t h r o w i n g and r e e l i n g

mach ines

West Germany

A u s t r i a

Belgium and Luxembourg

OP CAPITAL GOODS FOR TOE TEXTILES AND CL0T1HNQ JBCfr .!

_ _ _ _ _ _ ^ _ ^ 0 (US DOLLARS) £ g

1 . 9 7 6

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4 9 7 . 3 3 7

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1 7 9 . 9 6 6 362

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2 9 1 . 4 4 2

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392 .216

392 .216

1 . 6 2 0 . 4 6 1

153 .907

379 .921 3 2 1 . 1 5 5 1 0 7 . 7 2 5

304 .691 2 1 9 . 6 1 3

1 3 3 . 1 6 9

4 . 6 9 1 . 9 9 5 3 i 6 . 5 ? 5 142 .673 131.0oO

4 2 1 . 8 9 2 1 . 2 1 ' - . 155

27- ' . s^u 1 . 5 0 i . 551

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Description of goods

United Sta tes

I t a ly

Netherlands United Klngdon Switzerland Others

Machines for preparing yarns for ueav

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Weaving machines (loons)

Vest lie many

Austria Belgium and Luxembourg Csechoalovakla Spain United S ta tes France Japan I t a l y United Klngdon SMltierland Others

lng, e t c .

P la t - type kn i t t i ng suvohlnes for donestle use

Japan others Sui t ie r land

other f l a t - t y p e kn i t t i ng machine»

Cxeohoslovakla Vest Oemany East Oensany

Spain United S te tes and Fuerto Rloo

I t a l y Sui t ie r land

others Belgium and Luxembourg

1 . 9 7 6

Tc.tal

401 .003 2 2 . 6 0 0

196 .877 4 . 550 5. 5S4

268 .000 2 .152

372.871

92 .300

10.466 6 . 5 5 0

179.621

b-i.534

2.940.2><7

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427 .012 i

16 .100 2 0 1 . 0 8 3 330 .490 365 .934 SI 8 .306

5 .177 U 0 5 6 . 2 3 3

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2 1 1 . 3 7 8 2 7 3 . 2 3 5

2 . 1 2 9 . 7 9 4

4 0 9 . 9 2 8 85 .261

7 1 8 . 4 3 0 517 .110

174 .747 127 .357

99 .961

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6 8 1 . SiO

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8*.*0.02.00

B*.*0.03.OG

8*.*0.0*.00

8*.*1.02.00

W.41.0* .00

Description ot goods

Bleaching and dyaing «achinery

France Vast Geriany

Spain

Uniisd States Italy

Unltad Kingdoa

Switzerland

Japan

Netherlands

Others

Dressing and f inishing aachines

Vast oereany

Spain

United States

Franca

Italy Japan •ether) ends

Switzerland

Others

United Ktngdoe

Svaden

Printing lachinery

•s i t oereany

Austria

Spain

United States Italy

hather)audi Switzerland

Others

Industrial seeing eachinas

Vest iiareany

Belgiua and bixeibourg

Spain

United State* and Puerto Rico

Franca

Italy

Japan

United Kingdoe

Others

Canada

Seitier!and

Industrial seeing-each!ne be.ids

1976 l

| T o t e l

k . 6 9 8 . 5 5 7

3 4 9 . 6 8 1

t O i . 173

2 0 7 . 2 8 0

1 4 9 . 2 6 8

365. 086

2 . 0 i 9

2 . 3 2 0 . 6 3 9

1 . 3 7 4 . 6 5 9 1 1 5 . 4 1 6

2C-.. 2 : 9

7 J . i'/i 1.5">4

r . - - . isO b. 72o

1.111

1 . 5 1 1 . 4 3 0

2 3 6 . 5 0 9

4 5 8 . 1 9 ' . 59 . 120

2 6 9 . 0 9 4

2 . 7 2 9 1 70. QUO

3 . 5 . 702

1 . 0 5 4 . 0 3 7

5 5 4 . 2 i 9

7 . 4 9 0

3 . 2 9 0

3 7 8 . 3 0 4

. 244

i t . 359 1 .732

730

6 5 . 6 6 9

3. 522 .362

Vallejo plan

9 . 8 3 8

9 . 836

1 2 . 5 2 0

1 2 . -52 0

7 . 2 5 0 J

1977

Ordinary

3 . 0 1 1 . 6 2 0

9 4 8 . 9 2 2

6 0 o . 6 7 9

8 1 2 . 3 4 4

1 8 1 . 83a

399 .44V

5 2 . 5 6 0

4 . 1 4 9 . 5 9 3

2 . 4 7 5 . 2 1 6

70 .4S2

Si . : . 793

0 ' . ' .4 l 0

53. CCO

3 o . o ? 9

3 1 8 . 3 0 5

146. 9L'O

1:>.4CC

1 . 0 9 0 . £72

1 7 . 5 1 0

167. '3o0

338 .692 4 4 2 . 2 5 0

1 0 4 . 8 6 0

1 . 9 4 9 . 0 6 3

4 6 4 . 7 8 2

2 7 . j 3 4

9 2 9 . 8 / 9 5. 355

4 2 . 2 2 7

4 1 9 . 1 1 5 5 .927

5 4 . 4 1 4

5 . c o o . 4 8 7

Vallajo plan

4 7 . 559

3 0 . 1 2 4

1 0 . 9 6 5

6 . 3bO

1 1 . 4 2 5

1978

Ordinary

2 . 5 1 9 . 6 2 9

29 .363

1 . 0 3 2 . 4 ) 2 257 .177

1C2.239 6 .417

1 . 0 4 4 . 9 7 0

2 3 . 8 5 1

4 6 . . 7 0

5. 190.172

2 . 290 . 57.

70 . 3-."

I . ô ê l . iCT i ; . OJ ' .

Vallajo plan

1979

T o t a l

3 . 0 2 9 . 2 1 8

1 . 2 1 7 . 5 5 3 4 O J . 7 0 6

7 1 . 3 0 1

125.uOO

4 2 . 4 5 3 1 1 ? . 0 0 0

42.9-94

3. 4 3 9 . V-.7

1 . 1 6 9 . 7 2 5

° o . 9 o 6

1.4 r . 4 2 0 1 4 . 3 o 3

2 3 . 2 , 0 1 | 320. '42 . - . . t ow

72 . i s J

959 .429 34 .723

844.7-71

i . l 7 h

57 . 1(6

' . u . 7 70

24-. . 7S7

240 . uCC

193. 330

16 .540

3 . 0 ^ 1 . v r i J 125

7 3 6 . 1 3 .

*.n> | 16. i . U

1.5-.U.231 ) I S . 0 2 3

s. . . . : 7^. • 100

3 ' " - ' . l 7.920

2 05. 1 I

6 . 3 1 2 . 5 0 1 1 1 1 . 0 0 0

1 4 . 7 7 3

:• i . 346

Bi. 946 1 7. 427

0 0 3 . 272

2 7 . 9 3 3

2C .000

1 . 6 . o 5 3

4 2 8 . 0 9 4

7.CCO

3 . 7 1 2

2 . 3 2 9 . 3 6 9

7 3 5 . 3 3 9

- - .087

I- .7.G37

37 : . v S

oS. 397

3o9 -255

80 . 44V

45 . COO

o b . 6 6 8

5 . 6 0 2 . 7 5 5

Vallajo plan

1 :".4. OK/

1 5 4 . ; « 0

11 .941

6 . ° 4 i

3. OCO

14. SO J

V o M S (1 .

•3

4?S

Cui t UBS

ht «ling

8 4 . 4 1 . 0 6 . 0 3

M . 4 1 . 9 0 . 0 0

Description of good»

Vest Geriany Czechoslovakia Spain United States and Puerto Rico Italy

United Kingdoi

Others

BelgiiM and Luxetbourg

Seetng-iachine needles

Vest 6eriany East Geriany Belgiui and luxaaboiirg United States

Italy Japan Netherlands United Kingdoi

Switzerland

Others

Parts for saving lachines

Spain Vest Geriany Czechoslovakia Da mark United States

France Italy Japan United Kingdoi Others

T O T A L .

19/6

T o t a l

9 9 7 . 0 6 7 2 . 5 4 0

19 .175

399 . 172 1 6 3 . 6 5 s

. 155 .072

6 1 . 1 7 9 7 0 4 . 3 2 6

582

122 6 0 60

53

18

3C f 0.

2 165.

912

330

016 398

cav 109 2 i a • 74

4 : 0 l l j 185

7 6 9 . 3 9 2

5 2 . 1 0 8 1 2 . 0 5 6

5.021 1 7 . 3 0 4 12.501

9 . 4 5 5 2 . 2 0 4

17.352

1 8 . 2 4 3 . 7 5 4

Valla j o plan

7 . 2 5 0

3 . 7 6 9 . 9 8 4

1977

Ordinary

1 . 4 9 9 . 0 9 7 12 .580

43 .042

6 4 1 . 4 5 5 1 6 4 . 9 7 5

1 . 6 9 6 . 4 5 4 1 9 3 . 9 9 3

1 . 1 9 2 . 6 9 6

419

4 t Z-,

96 15

3 ; 30

754

298

o36 625 - 5 2 7 3:,

4 „ 1

669 . 7 . 9 c 9

147 .

1 12 « 7

Vallejo plan

11 .425

6 6 7 .

7 0 . 9 5 6

1 3 7 . 5 6 9

196 .315

414

1 0 . 3 8 6 6 2 . 9 7 2

4 . 6 5 4 1 6 4 . 0o7

5 7 . 4 2 5 . 2 7 9

5 6 . 5 1 4

3 0 . 2 3 4

2 6 . 2 8 0

4 . 6 9 0 . 0 1 2

19/8 1979

Ordinary

1 . 6 3 9 . 4 . 5

72. i)7;

402 . 776

2 1 1 . l D

2 .68Ù.C 9 165. r«7

1 . 1 3 6 . 5 > ; 3. 71 I

588.802

210

9 95 31

11 36 53

134 .

4 9 5 .

417 372

492 657

112

994 925 7 2 .

9 .2

92o

1 6 2 . 2 2 1

1 5 2 . 5 9 2

2 0 . 4 8 0

6 * . «SI 3 . 4 3 3

87.311

6 2 . 9 0 6 . 0 5 4

Vallejo plan T o u :

11 .003

6 . 3 4 1 . 5 3 2

1 . 4 .4. 6F6 8 .566

£ 7 . 2 5 4 5 7 0. ."-il

9 0 . 6 2 8 2 . 5 n ) . 4 0 1

117.040

737.625

56-i 102

Vallejo plan

1 4 . c •-)

1 7 , 1 ;

204 24

1 3

51

706 5o8 4C8 447

778 i S l

1C5. 344

6 5 9 . 5 6 0

2 0 1 . 7 9 3

9 7 . 0 3 7

63.

e 109

2

239 .

002

141 775 817

999

670 7 . 1 1 7 . 5 5 7

«T8 on 3 ft •

3B

COM. TEX/16 •Pace 96

EUROPEAN ECONOMIC COMMUNITY

Reply to Point 2(A) of GATT Questionnaire GATT/AIR/1611

Autonopous adjustment processes

In a market economy such as that of the European Communitya industrial adjustments result more from an economic autonomous mechanise than from directives issued by the public authorities.

Undertakings in the textiles/clothing sector of the Co~~*aJ.ty are aware of participating and operating in such an economy that is increasingly open; accordingly, they have pursued their efforts toward modernizing, restructuring rationalizing and transferring production ranges to take account of strong foreign competition, and a considerable reduction in employment has resulted

From 1973 to 1978, some 700.000 job opportunities were lost (1*22,000 in textiles and 278,000 in clothing) and some **a200 undertakings were closed down; this trend has affected «.11 the member States-, to the extent of as much as kO per cent in certain regions.

This loss of job opportunities has been keenly felt because certain regions are concentrated on one industry, in most cases employing mainly female workers with very limited alternative employment possibilities.

Despite this constant decline, this sector still represents approximately ê.O per cent of Community GDP because of its involvement with other highly technical industrial sectors.

The essential causes of the situation described above should be sought in:

- the impact of imports which, despite an export drive, has had a negative influence on the trade balance;

- improved product ivi ty ;

- the pattern of household expenditures which has changed greatly to the detriment of certain purchases, in particular textile articles. In the past few years, the share of textile expenditure in the household budget has been steadily declining.

Notwithstanding this situation, the Community has not abandoned an open trade policy, and adjustments have therefore been necessary.

COM.TEX/l6

These are centered around two objectives:

(a) on the one hand, to improve performance of undertakings in sectors experiencing difficulty so as to ensure maintenance of the broadest possible range of activities on Community territory;

(b) on the other hand, to foster innovation as a means of meeting new market needs, and to that end to keep in the forefront of new techniques and technologies.

It is essentially for the individual undertaking to meet the challenge arising from far-reaching changes in the conditions in which the Community textile and clothing industry must now operate.

At the same time, a considerable effort has been made in regard to exporting top-range products to foreign markets, although such a policy has its limits.

In this context, the Community has already taken certain initiatives using a flexible approach, accepting risks and embarking on the necessary structural adjustments.

Inefficient equipment has been scrapped and partly replaced by modern tools, resulting in appreciably improved productivity.

In the clothing sector, productivity (in terms of average annual turnover per employee) increased from EUA 10,700 in 1973 to EUA 19,600 in 1978 - an increase by 83 per cent; in the textiles sector, it increased from EUA l6,300 in 1973 to EUA 28,600 in 1978, i.e. an increase by 76 per cent.

At this juncture, no-one can guarantee growth prospects in one branch more than another, because there are too many unknown elements. It is therefore difficult for the public authorities to embark on interventions that could lead to inefficient and costly investments.

The results achieved are attributable to the continuing investment effort made by undertakings, which has focused on modernization and has excluded any expansion of capacity.

Between 1973 and 1979, the amount of investment per person employed increased from EUA. 833 to EUA 1,080 for the textile industry and from EUA 2U0 to EUA Ul7 for the clothing industry.

Despite a relatively unfavourable environment and an increasingly difficult market, undertakings in the sector have continued to invest to remain competitive, and to maintain a healthy and viable textile industry within the Community.

On the other hand, profitability of capital invested has been extremely low in recent years.

Future policy must be oriented toward adjustment consonant with the needs of restructuring and reconversion that are essential to take account both of import impact and of technological progress.

COM.TEX/16

Reply to Point 2(B) of GATT Questionnaire GATT/AIR/l6ll

Government measures

It is not easy to draw a clear borderline between the effects of government measures and the impact of autonomous adjustment processes.

Government measures have helped to activate the reorientation process in the textile and clothing sectors, both from the technical aspect through increased productivity and in respect of selection of articles less vulnerable to competition, as a result of an innovation effort.

In the early 1970's it was already fairly clear that the member States were going to have to adjust to the major change resulting from the opening up of the Community market.

The Community spelt out the conditions that those measures must observe and which are consistent with the commitments entered into in the context of the MFA.

The member States have always refrained resolutely from intervening in operations that might increase production capacity in sectors where there was structural over-capacity or a stagnation of demand. Furthermore, in sectors where such developments caused a price slump in the Community as a whole» such measures could be envisaged only for undertakings that agreed to switch to other activities. Furthermore, in order to increase competitiveness in the sector, measures have been taken to improve production techniques and encourage applied research.

The main concerns are therefore :

- to avoid any problem of over-capacity;

- and to orient the industry's effort toward a balanced adjustment to the requirements of the restructuring and reconversion that are necessary because of international competition.

A technical description of these measures can be summed up as follows:

- measures aimed at the restructuring of industrial and trade facilities;

- measures to encourage restructuring through research, innovation, improvement of productivity that can result in the launching of new products3 application of advanced technologies (electronics, robotization, computer, etc.);

COM.TEX/16

- measures to encourage modernization of production units, particularly small or medium ones, resulting in restructuring without any increase of production capacity;

- measures to encourage investments designed to save energy and preserve the environment;

- interventions in favour of undertakings in the sector that switch over to new activities outside the sector in place of activities on the decline in the geographical areas most threatened.

In addition, by way of accessory measures, to alleviate the inevitable social consequences implicit in such structural adjustments, training and retraining programmes for workers have been jointly financed by the European Social Fund and national authorities; similarly, interventions have been financed by the European Regional Fund and national authorities, inter alia, with a view to creating alternative employment opportunities in the regions most threatened.

Annexed hereto are the contributions transmitted by member States.

Reply to Point __ 2(C) of GATT Questionnaire GATT/AIR/.l6l3

Increasing access to the market

Between 1973 and 1979» imports of MFA products increased in volume by 105 per cent, whereas exports increased by only 21 per cent (the deficit in 1979 was equivalent to 579,000 tons). For the same period the penetration rate increased from 18.k per cent to 38 per cent with peaks of nearly 70 per cent for specific products.

The data in terms of value confirm this trend:

- from EUA 3,900 million in 1973, imports increased to EUA 10,900 million in 1979 (+ 179 per cent);

- exports increased from EUA 5,000 million in 1973 to EUA 7,900 million in 1979 (+ 58 per cent),

- the trade balance moved from a surplus of EUA 1,100 million in 1973 to a deficit of EUA 3,000 million in 1979.

This progressive reduction of outlets together with appreciable import penetration has had a direct impact on production. Despite some recovery in 19793 the level of activity is still below what it was in 1973.

COM.TEX/16

Reply to Point--3 of Questionnaire GATT/AIR/l6ll

General statement by the Community

1. The main policy objective for the textile/clothing sector is to have in Europe a highly performing textile/clothing industry that can face international competition and afford a large volume of employment over a long period.

This central objective comprises several aspects:

- at the internal level within the Community, it has resulted in toe policy of structural adjustments already mentioned "^at policy is reflected in the communication presented by the Ccmmur to the Textiles Committee on behalf of the member States ;

- at the external level, full integration of the sector in international trade must be secured, as regards both imports and exports, and our policy must be understood and accepted by our industrial and developing trade partners.

2. Article 10:2 of the Multifibre Arrangement provides that the Textiles Committee "shall undertake an analysis of the current state of world production and trade in textile products, including any measures to facilitate adjustment and it shall present its views regarding means of furthering the expansion and liberalization of trade in textile products".

In addition, in the preamble the parties have declared in the fourth paragraph their desire "to take co-operative and constructive action, within a multilateral framework, so as to deal with the situation in such a way as to promote on a sound basis the development of production and expansion of trade in textile products and progressively to achieve the reduction of trade barriers and the liberalization of world trade in these products".

Taking into account the objectives mentioned in point one, and with a view to securing on a sound basis the development of textile production in the world, it is essential not only that the developed countries pursue a policy of adjustment, but also that the other partners refrain from practising a policy of systematic investment in the textile sector} which would inevitably lead to a situation of market disruption which the MFA precisely seeks to avoid.

I

Production Index for the Textile and Clothing Industry in Relation to the Overall Industrial Production Index

1973 = 1DD

I n d u s t r i a l p r o d u c t i o n index

Nace 1-k

T e x t i l e p r o d u c t i o n index

Nace i+3

C l o t h i n g p r o d u c t i o n index

Nace U53-6

1 9 7 3

100

100

100

197<*

1 0 0 , 6

9 5 , 8

96 , <•

197 5

9 3 , 9

Oil ,4 .

9 * i , ' .

1976

1 0 0 , 6

9 7 , 1

9 9 , 6

1977

1 0 3 , 2

. 9«*,3

9 7 , 0

1970

1 0 5 , 5

9 1 , 6

9 3 , 6

1979

1 1 0 , 5

9 6 , 5

9 0 , 3

h3 O

Source : Statistical Office of the European Communities. - oq § n> • o H

SOURCE : Questionnaires. NUMBER OF ENTERPRISES.

n.si A re

0 ,

F 3

I 1

N 3

D 1

L

UK !

I r *

DK 1

' ) (AL

43 1 9 7 3 453

2.857

3.891 («0

3.493

316

1.395

2.408

246

236

14.842

4 .308

0 4 .490

1.876

446

1.195

2.647

510

236

15.708

43 1 9 7 A 453

2.711

3.716

3.374

432

1.338

2.460

228

0 224

4 .060

0 4 .080

1.786

594

1.180

2.887

496

0 221

43 1 9 7 5 453

2.531

3.574

3.301

393

1.255

2.298

2 1 6

212

i

3.788

4 .106

1.748

514

1.128

2.655

260

- 209

43 1 9 7 6 453

2.417

3.477

3.273

388

1.187

2.222

184

212

3.600

4.044

1.686

490

1.039

2 .550

461

0 208

43 1 9 7 7 453

2.373

3.282

3.216

382

1.145

2 .210

191

213

3.468

3.869

1 . 6 5 2

415

934

2.500

401

206

•

43 1 9 7 8 453

2 .37»

3.197

3.173

375

1.081

2 .150

197

203

12.833

3.365

3.660

1 .62D

387

944

2.400

389

201

13.467

43 1 9 7 9 453

2.309

3.150

329

1.052

195

3.296

1 . 6 1 0

349

887

360

* all enterprises 0 estimât.

1 only enterprises of 20 or more employees 3 enterprise—, of 10 or more empl, 4 enterprises of 6 or more empl.

Tab. 2

SOURCE : Q u e s t i o n n a i r e s . TOTAL NUMBER OF PERSONS OCCUPIED

M.SÏATE

1

B 1

43 1 9 7 3 453

432.221

427.259

379.755

58.700

107.064

L

UK

I r

DK

I O I A L

1

*

1

486.700

25.712

16.744

1. b3ML>i

363.841

332.331

187.422

40 .900

66.665

313.600

1UL .1 t

13.758

43 1 9 A 453

393.350

408.609

362.024

55.100

99.004

475.500

2<4.5et

14.505

I. .535.133 1.832JÊ8I

314.278

313.623

195.288

33.100

65.418

320.500

16.19E

11.389

1.269.79'

43 1 9 7 5 453

356.826

373.462

366.296

48.600

87.846

438.900

2 1 . 1 3 3

12.478

1.7(15£<t1

291.832

288.168

192.587

27.100

58.707

303.600

15 .500

10.633

1.1 e a n 7

43 1 9 7 A 453

343.575

365.204

336,928

46.100

83.062

421,500

20.323

13.528

1355.220

274.056

287.903

183.829

24.900

53.377

291.200

15.116

11.723

1.142.104

43 1 9 7 7 453

331.720

344.590

321.710

41.800

75.739

424.500

21.139

12.145

1573343

264.576

278.329

178.004

22 .200

46.955

290.400

13.223

10.771

1.104.458

43 1 9 7 f l 453

319.697

328.649

309.686

37.800

69.142

405 .800 '

30.802

9.95 5

1511.52V

259.529

271.082

164.675

20.900

44.996

278.100

13.059

10.070

1D56w411

43 1 9 7 9 453

310.622

308.700

35.200

67.157

21.455

10.400

256.718

1 6 1 . e 5 P

19.80C

42.13d

13.05'

1 on l y i i tor .vr ises o f 20 or more empl .

* a l l en te rp r i ses 3 . e n t e r p r i s e s o f 10 o f more empl . ' t . e n t e r p r i & H B o i ' C o r . O I L ; f?mpl

4.90(

P O era s 0) •

i-3 H H O X U) ' ^

H G

http://1UL.1t

SOURCE : Questionnaires. at current prices

Tab. 3

d o

m o

ot) S

o> •

si H

M.STATE

1 Mio DM

3 , Mio FF

1 Mrd L i t

2 Mio " FI

1 Mio ** ° FB

L

1 U^ Mie t

* Mio I r i r t -

1 ox Mie Dkr

IOTAL

A3 1 9 7 3 453

28.790

39.712

(4)

3.699

A. 390

107.763

3.031

137

2.830

17.974

16.672

(4 )

1 . 3 1 7

2 .210

32.996

1.120

59

1.501

43 1 9 M 453

29.985

41.654

4.707

4 .720

120.701

3.507

163

2.848

18.014

18.135

1 . 6 0 1

2.177

37,264

1.368

69

1.399

43 1 9 7 5 453

28.160

40.875

5.299

4.177

106.699

3.668

159

2.793

u

18.220

20.379

1.856

2.086

36.193

1.523

76

1.321

43 1 9 7 6 453

30,753

42.421

6.840

4.475

125.940

4.428

220

3.241

18.467

22.038

2.451

2.026

37.765

1.696

81

1.-661

43 1 9 7 7 453

31.269

47.193

8.077

4.443

124.271

5.130

270

3.266

19.142

25.627

3.107

1.846

38.120

2 .040

95

1.707

•

43 1 9 7 8 453

31.042

53.462

8.781

4.348

121.000

5.350

300

3.273

19.337

27.598

3.084

1.882

38.000

2.310

104

1.746

43 1 9 ? * 453

32.279

10.782

4.361

133.855

320

3.666

19.959

<«.10£

1.905

38.500

120

1.938

1 only enterprises of. 20 or more employees included * all enterprises 2 .ill r-.)..- : Mf i-,.--, 77-79

3 enterprises of 10 or more empl. 4 enterprises of 6 or more empl.

** VAT decl. "Inter, sales + exp. - credit documents".

SOURCE : Q u e s t i o n n a i r e s . a t c o n s t a n t p r i c e s

M.SIATE

1 Mio DM

3 , Mio ff

1 Mrd Li t

2 Mio " f l

1 „ Mio « ° fB

L

4 b.s Mio b

* Mio I r ï r t

1 OK M ' c

Dki

IOTAL

A3 1 9 7 3 453

28.790

39.712

(4)

3.699

4 . 390

107.763

3.031

137

2.830

17.974

16.672

<4>

1 . 3 1 7

2.210

32.996

1.120

59

1.501

43 1 9 7 < 453

28 .023

38.929

1+.023

1+.330

IO7.769

3.050

138

2.566

16.836

16.9^9

1.368

1.997

33 .271

1.190

58

1.260

43 "

2k.702

31 .93^

3.81+0

3.1+52

92.782

2.1+95

116

2 . 2 3 ^

X

7 5 453

15 .982

15 .921

1.3U5

1.72U

31.1+72

1.036

55

1.057

43 > 9 7 6 453

26 .511

32.881+

1+.11+5

3.1+16

L02.390

2 .651

1145

2.1+01

15.920

17.081+

1.1+85

1.51+7

30.703

1.016

53

1.230

43 1 9 7 7 453

27.919

33.709

3.921

3.196

90.709

2.729

155

2 .177

17 .091

18.305

1.508

1.328

27.825

I .O85

55

1.138

43 ' 9 7 f l 453

26.307

33 .001

3.903

2 .958

87.050

2.512

150

1.981+

16 .387

17.036

1.371

1.280

27.338

I.O85

52

1.058 •0 o 01 O en S o • H W O X

1 only enterprises of. 20 or more employees included * all enterprises 2 .il I ..i i-Mf ir-os 77-79

3 enterprises of 10 or more empl. 4 enterprises of 6 or more empl.

** VATdecl. "Inter, sales + exp. - credit documents".

• See t a b . 3

SOURCE : Q u e s t i o n n a i r e s .

Table 3 a TURNOVER - MILLION EUA

at current p r ices

hi o p o

era 3 n> •

1-3 H W O fxj O N ^ .

H

M.STATE

0 1

F 3

I 1

N 3

B 1 • •

L

1 UK

* I r

D K 1

IOIAL

A3 1 9 ? 3 A53

8.787

ft) 7.263

5.16*.

1.280

2.25*»

6.034

273

382

31 .**37

5.483

ft) 3.049

1.840

645

690

•

2.248

117

202

14.274

A3 1 9 7 4 A53

9.724

7.268

6.067

1.474

2.601

6.879

31S

392

5.842

3.164

2 .055

680

803

2.683

135

193

A3 1 9 7 5 A53

9.235

7.684

6.544

1.332

2.340

6.550

283

392

i • I .

5.975

3.831

2.292

665

794

2.720

136

186

A3 1 9 7 6 A53

10.923

7.937

7.353

1.51*»

2.918

7.121»

351»

1»79

6.559

4.123

2.635

686

875

2.729

130

21*6

A3 1 9 7 7 A53

11.807

8.1» 18

8.020

1.587

3.040

7.8A8

1.13

1*76

7.228

4.571

3.085

659

932

3.121

11.5

249

•

A3 1 9 7 8 A53

12.11.5

9.311.

8.122

1.579

3.021

8.058

1.52

1*66

' .3 .157

7.566

4.808

2.853

683

949

3.A79

157

249

20 .744

A3 1 9 7 P " A53

12.856

478

7.949

179

1 only enterpr. DT mare than 20 empl

* all enterprises 3 all enterprises of more than 10 empl.

k enterprises of 6 or more

f


LABOUR COSTS/ NAT. CURR, DEPENSES DE PERSONNEL.

Tab. k

M.MArE

1 0 Mio DM

3 f Mio FF

1 I Mrd L i t

3 n Mio F l

* * , 0 Mio

FB

L

1 UK Mio

I r M i o I r fc

1 0 K Mio Dkr

HHAL

1 o n l y

43 1 9 7 3 453

6.853

8.011 (4 )

1.072

884

18.376

715

30

675

e n t e r p r i s

4 .408

4.241 (4 )

1*31

585

10.793

337

1G

486

es o f 20

43 1 9 7 4 453

6.858

8.332

1.292

989

19.904

840

33

704

3r more e

4.242

4.429

5Ê6

579

12.272

411

19

488

mployees

43 , 9 " 453

6.684

8 .830

1.568

989

20 .010

990

36

696

, i n c l u d e d

4.351

5.054

711

548

12.981

485

23

489

43 1 9 7 6 453

6.968

9.695

1.917

1.010

22.389

1.116

47

864

4 .407

5.650

863

532

13.331

548

25

627

43 1 9 7 7 453

7.112

10.341

2.190

992

21.498

1.240

57

858

4.545

6.415

997

507

12.569

636

29

627

43 1 9 7 8 453

7.316

11.200

8

2.340

962

20.645

1.350

64

841

4.720

7.130

8

1.019

504

11.998

676

34

649

43 1 9 7 9 ' 4 5 3

7.486

2.842

71

992

4.918

1.236

38

714

•r) O P o on S n •

O X

3 enterprises of 10 or more ^ enterprises nf h or more

* all enterprises ** Off. nat. de Sec. Soc. x estimated

* • See t a b . 1»


ï S Table ^a m s

LABOUR COSTS - MILLION EUA

Pépenaea p e r s o n n e l

O ;

M . S T A T E

O 1

F 3

I 1

N 3

1

L

1 UK

I r

1 DK

10TAL

43 1 9 ? 3 4 5 ,

2 . 0 9 2

L l . 6 5 ^

1.1.97

2 5 8

381.

1.1.23

60

9 1

7 . 2 7 0

1.31.5

> 77#>

602

171

2 2 6

6 7 1

32

66

3 . 8 8 9

A3 , 9 M 453

2 . 2 2 1 .

1.1.51.

1 . 6 6 5

309

t*29

1.61.8

65

97

1 . 3 7 6

7 7 3

7 3 0

1 8 1

26/*

8 0 6

37

67

43 1 9 7 5 453

2 . 1 9 2

1 . 6 6 0

1 . 9 3 6

315

<*39

1 . 7 6 8

6»»

98

1.1.27

9 5 0

8 7 8

175

285

8 6 6

««1

69

43 1 9 7 6 453

2 ,»*75

1 . 8 1 1 .

2 . 0 6 1

31*2

5 1 9

1 . 7 9 5

76

128

1 . 5 6 5

1 . 0 5 7

9 2 8

180

3 0 9

8 8 2

<«0

93

43 1 9 7 7 453

2 . 6 8 5

i.a*»5

2 . 1 7 5

351.

5 2 6

1.897

87

125

1 . 7 1 6

I . W i

9 9 0

1 8 1

307

9 7 3

kk

9 1

43 1 9 ? 8 453

2 . 8 6 2

X 1 . 9 5 1

2 . 1 6 5

31*9

515

2.335

96

120

1 0 . 3 9 3

1.81.7

1.21.2

91.3

183

300

1 . 0 1 8

5 1

92)

5 . 6 7 6

43 1 T 453

2 . 9 8 1

106

i

1.959

i

57

1 only enterprises of 20 or more empl

* all onterprises

* eat.

3 enterpr. of 10 or more

'. enterpr. of 6 nr mnrn

Tab. 5

SOURCE : Questionnatres. INVESTMENTS IN FIXED ASSETS (nat. curr.)

Investissements en actifs fixes

M. STATE

roMI° DM

3 F M I° FF

MRD

1 LIT

MIO 3 N

FL

1 D M I° FB

L

, MIO 1 UK

Ê

* MIO Ir Ir Ë

1 DK*10

DKr

IOIAL

43 1 9 7 3 453

1.310

1.8974

264

201

4.253

159

(1 5

150

332

4 412

38

33

767

28

(1 2

36

43 1 9 M 453

1.069

1.545

353

175

4.461

188

<1 7

171

217

314

62

24

724

33

(1 1

34

43 1 9 7 5 453

981

1.441

319

165

3.423

160

(1 8

99

269

339

49

26

612

30

(1 1

28

43 , 9 7 6 453

1.165

1,807

398

172

2.850

156

14

221

329

436

59

36

629

36

2

84

43 1 9 7 ? 453 U

1.138 •

1.455

380

177

3.004

188

31

152

U 321

430

72

50

633

53

3

60

43 1 9 7 8 453 I

1.120

1.525

437

150

3.002

228

25

103

y 320

493

73

48

739

65

4

51

43 1 9 7 9 453

557

53

103

65

4

51

OM

.TE

: age 1<

1~> PS

1 Only enterprises of 20 or more employees included 1973-76 not c.o; pjroble to 1977-79

* AU enterprises 3 Enterprises of 10 or more employees 4 Enterprises of 6 or more employees 8 est.

•-T.

IT) O P O M S (D »

Tab. 5 a £ 9 INVESTMENTS IN FIXED ASSETS (Mio UCE) o ^

SOUIICE : Quest ionnaires.

M.'.TATE

0 1

i f

1 I

i N

1 0

L

1 UK

Ir

1 DK

KHAL

A3 1973 453

400

347

369

59

89

317

10

20

1.611

101

75

53

10

16

56

4

5

320

43 1 9 A 453

347

270

455

55

96

369

•f 14

24

70

55

80

7

16

65

2

5

43 1975 453

322

271

394

53

75

286

4 14

14

i

88

64

61

8

13

54

2

4

43 1976 453

414

338

428

58

66

251

23

33

117

82

63

12

15

60

3

12

43 19?7 453"

430 9

260

377

63

74

288

47

22

121 8

77

71

18

16

81

5

9

43 1978 453

438 fl

266

404

54

75

343

38

15

1.633

126 B

86

68

17

18

98

6

7

42o

43 1 9 7 ? 453

79

I -.

6

I only enterpr i ses of 20 or more eropl. • a l l e n t p r n r l a e s 3 en te rpr i ses of 10 or more empl. ° 1973-76 not comparable to 1977-79 U e n t e r p r i s e s o f 6 o r more Û e s t .

** Gross valued added at market prices estimated at current prices (Source: National Accounts) T a b .


GROSS VALUE ADDED AT F.C. ( n a t . c u r r . )

Va leu r a j o u t é e b r u t e

M.SlAIE

1 0 MIO

DM

3 p MIO

FF

A3 1 9 7 3 453

9.620

15.203

7.050

6 .929 '

A3 1 9 A A53

10.A20

16.A66

7.250

7.97A

A3 1 9 7 5 A53

9.790

16.050

7.510

8.857

A3 1 9 7 6 A53

10.170

16,971

7.500

9.275

A3 1 9 7 7 A53

10.7A0

18.0AA

7.680

10.755

A3 1 ? 7 8 A53

n . d . n . d .

A3 1 9 7 9 A53

1 I MRD

L I T 1 .A79 5t*i* 1.732 713 1.830 76A 2 .568 977 3.052 1,196 3.198 1.199 A.158

3 N MIO

FL 1.355 802 1.386 7A6 1.321 707 1.AA2 735 1.309 676 1.320 67A

1 B MIO

FB 3A.51A 18.12A 36.5A6 21.386 31.798 22.3A5 38.275 23.329 3A.319 22.593 33.081 23.970

1 UK MIO

MIO I r

I r . È

MIO 1 DK

DKr

1.147 A91

55

1.316

TOTAL

2 9

717

1.259 58A 1.350 667 1.636

65 3<» 62 3B

1.326 693 1.320 689

88

853

7A2 1.790 950 1.980 970

AO 108

63A 1.590

A7 120 52

916 1.681 925

I Only e n t e r p r i s e s of 20 or more employees * A l l e n t e r p r i s e s 3 A H e n t e r p r i s e s o f 10 o r more employees A A l l e n t e r p r i s e s o f 6 or more employees

128

1.7A8

1.A0A

60

9AA

p g en S

ta H X

CT>

** Gross value added at market prices estimated at constant prices (Source: National Accounts) Tab.

GROSS VALUE ADDED AT f.C. <nat. curr.)

SOURCE : Quest ionnairea. Valeur ajoutée brute

M. M AIC

1 . D W 0

DM

3 f MIO

ff

1 I M R ° LIT

MIO 3 H

fL

** MIO 1 B

L

MIO 1 UK

MIO * I r

I r . 6

1 DK DKr

lOfAL

A3 , 9 ? i A53

9.620

15.203A

1.A79

1.355

3A.5H

'

1.1A7

55

1.316

7.050

( 929^

bkk

802

18.12A

A91

29

717

A3 1 9 M A53

9-738

15 .38?

1.480

1.272

32.030

1.095

55

1.195

6.776

7 .45^

609

• 684

19.094

508

29

624

A3 1 9 7 5 A53

8.588

12.53e»

1.326

1.092

27.650

1.918

45

1.056

1 1 n •

6.588

6.919

554

584

10 .43c

- -

454

27

551

^ > 9 7 Û A53

8.767

13.156

1.556

1.101

31.118

980

58

. 632

6.486

7.190

592

561

I 8 . 9 6 7

444

26

470

A3 1 9 7 7 A53

9.589

12.889

1.482

942

25.050

952

62

I . 0 6 0

6.857

7.682

5-Rl

4*6

16 .491

505

27

A3 1 9 7 8 A53

n . d .

1.U21

898

23.7^9

929

n . d .

533

459 j

1 . 17-245

H55

:

611 ! . . > . 561

;

| 1 _ __JI

ly L-nterprises of 20 or more employees * Aii enterprises 3 Ail enterprises of 10 or more employees A All enterprises of 6 or more employ***

Tab. 6 a

SOURCE : Questionnaires. ÇgOSS_yALyE_ADDÊO^AI_F.£._iMIO_yÇE)

at current prices

l i . s u i r

1 u

3 f

1 »

3 N

* * 0

1

L

! UK

* I r

1 DK

lOfAL

45 1 9 / i 453

2.937

2.780 (4)

2.065

395

722

2.283

110

177

2.152

1.267 (4)

759

234

379

977

58

97

43 1 9 M 453

3.382

2,873

2.233

433

788

2.470

127

183

2.353

1.391

919

233

461

1.146

67

95

43 1 9 7 5 453

3.213

3.016

2.260

421

698

2.411

110

185

•

2.465

1.664

944

226

490

1.191

67

97

43 1 9 7 6 453

3.613

3.175

2.761

488

887

2.632

142

126

2.665

1.735

1.050

249

540

1.194

64

94

43 1 9 7 7 453

4.058

3.219

3.031

467

839

2.738

165

232

2.902

1.918

1.188

241

553

1.453

72

134

43 1 9 7 8 455

2.958

479

826

2.982

181

239

1.109

245

598

1.461

78

132

43 1 9 7 ? 4 5 5

P C 1 ' UQ L

1 only enterprises of 20 or more empl. * all enterprises 3 all enterprises of 10 or more empl. . ** see tabl. 6 h all enterprises of 6 or more empl.

COM.TEX/16 Page 11U

EEC MEMBER STATES

BELGIUM

Government measures

Government measures to assist the textiles and clothing Bector exist at two levels:

1. Measures under legislation for economic expansion.

Under such legislation, the Government has particularly promoted restructuration, reconversion and reorientation investments in the textiles and clothing sector, including investments involving reductions in textile capacity (in favour of other industrial activities) and reduced employment.

2. Specific measures in favour of the textiles and clothing sector comprise:

(a) the Royal Decree of Ik May 1976 granting non-interest-bearing, recoverable advances to clothing industry enterprises and certain sectors of the knitted and crocheted goods industry for the purpose "of promoting the restructuration and modernization of the sectors in question in order to enable them to adjust successfully to new market conditions over the medium and long-term";

(b) the Royal Decree of 20 December 1977 governing the granting of limited credit, for which the interest is paid by the State, to enterprises of the textiles sector as well as to certain enterprises of the clothing sector, the knitted and crocheted goods sector and the linen-fibres sector "which agree to co-operate in studies undertaken or to be undertaken with a view to the restructuration of their sector as well as to the realization of such restructuration".

In addition, in a broader context and in order to make the above-mentioned measures as effective as they should be, the Government is proceeding with a very extensive study on the situation of the textiles and clothing sector, on its future prospects and on all the general restructuration, reconversion and reorientation measures that need to be imposed or encouraged.

DENMARK

Government measures

As regards the three types of measures on which information is requested, Denmark has as yet never adopted official adjustment measures specially designed for the textiles and clothing sector, whether for improving competi-tivity, changing lines of production, or facilitating reconversion.

The enterprises concerned can, however, take advantage of the general system of development aids, and there are also general schemes for training and recycling the unemployed, to which the unemployed of this sector have access,

COM.TEX/16

FRANCE

Government measures

The three objectives mentioned in the questionnaire are actually those which, without being individualized, have been pursued in France's policy of adjustment of the textiles industry. Assistance procedures have been financed both by a quasi-fiscal levy and, to a lesser extent, by funds from the Budget.

1. CIRIT

French assistance specifically for s tructural adjustment of the t ex t i l e industry i s at present channelled mainly through allocations by the Textile Industry Structural and Commercial Modernization Committee (Comité interprofessionnel de renovation des structures industr iel les et commerciales de l ' indus t r i e t ex t i l e ) (CIRIT) from i t s share of the quasi-fiscal levy on t e x t i l e s .

The quasi-fiscal levy on t ex t i l e s i s charged at the rate of O.kk per cent of the value of t ex t i l e products. The annual receipts from the levy amount to some F 120 million, of which 5/7ths go to CIRIT. The forms of assistance which CIRIT is authorized to furnish within the l imits of the funds available to i t from the above-mentioned quasi-fiscal levy are as follows:

- Assistance towards restructuration consisting of the regrouping of mostly small or medium sized undertakings, by assumption of part of the non-productive costs occasioned by such operations. This type of assistance has been given since 1966.

- Assistance towards reconversion ( i . e . encouragement to the closing of marginal production units) in connexion with the payment of compensation to redundant personnel and by contributions to the cost of retraining. This type of assistance has also been given since 1966.

- Assistance in the financing of certain" collective projects such as the Economic Trends Observation Centre (Centre de conjuncture et d'observation économique), fashion co-ordination organizations and certain studies of a general character.

- CIRIT is also authorized to assis t in the modernization of production uni t s , mostly small or medium sized. This i s real ly a kind of assistance to adjustment and in no case i s i t s purpose to increase production capacity.

COM.TEX/16 Page ll6

- Another major means of industrial restructuration is aid towards research, innovation and improvement of productivity, where activities are also financed by quasi-fiscal levies. The research programmes in this field are conducted and administered by the Textile Institute of France and the Technical Studies Centre of the Clothing Industries (Centre d'Etude Technique des Industries de l'Habillement). Their work is directed towards the introduction of new products and requires the use of advanced technologies: electronics (computer-assisted design, laser-cutting) robotization, automated control, etc.

2. Funds from the Budget have been allocated either through procedures specific to the textile sector or through general procedures applicable to the modernization and restructuration of industry as a whole.

- The French Government has deemed it necessary to implement, in a few very limited sectors, certain special programmes of aid for restructuration and the improvement of productivity (cotton, combed wool, throwing, texturization). The purpose of such programmes is organized rationalization, and where necessary reduction, of production capacities, and their adjustment to a stationary or slightly contracting market. The aid has been granted in the form of subsidies, at a rate never exceeding 1Û per cent of the amount of the programme submitted.

- In addition, within the context of non-specific measures to assist French industry as a whole to withstand the impact of the recession, the French authorities have been led to intervene in the sector, on a case-by-case basis, to encourage, by means of loans from the Economic and Social Development Fund., enterprises in difficulty to restructure themselves in order to adjust to the new requirements of competitivity and to maintain employment.

To mitigate the effects of redundancy in employment in the textiles sector, the French authorities have financed programmes for training and recycling workers and have made grants to enterprises starting new non-textile operations in the place of their declining activities in the most threatened geographical areas.

In evaluating the effects of these measures, it is difficult to separate them from the consequences of autonomous adjustment processes. It may be said, however, that they have accelerated the process of change, in technological terms, towards better productivity and a range of products that are less vulnerable. For example, furnishing fabrics and fabrics for technical uses have experienced positive growth.

Various figures reflect these publicly assisted efforts: labour productivity has increased at an average rate of 6 per cent annually Bince 1976, and added value per employee has risen by 13 per cent annually since 1973.

COM.TEX/16

FEDERAL REPUBLIC OF GERMANY

Government aid

I. Improvement in competitivity of present lines of production

In keeping with its general economic principles., the Federal Republic does not have sectoral programmes to encourage the processes of adjustment taking place in the textile and clothing industries, but enterprises in this sector may utilize the instruments of general economic promotion to support their own efforts to maintain and improve their competitivity. More specifically:

- Enterprises installed in development zones may apply for funds earmarked for regional promotion, which under certain circumstances are made available for rationalization of production, improvement of productivity, etc.

- In addition, enterprises of the textiles and clothing sector have access., for their rationalization efforts, to the results of the joint industrial research encouraged by the Federal Republic and the Lander. Since the textiles and clothing sector consists mostly of small and medium enterprises that do not have the means to finance all the necessary research and development work by themselves, joint research plays a particularly important part.

The changes that have taken place in productivity clearly bear witness to the successes obtained by the textiles and clothing sector in improving its competitivity.

Output per worker/hour (1970 g 100)

1973 1978

Textiles industry 126.3 17^.0

Clothing industry 111.2 133.2

Processing industry 119.2 150.1

The increases in productivity recorded in the textiles industry are thus considerably greater than the average for the country's industry as a whole.

COM.TEX/16

It is probable that the Government aid programmes referred to above have contributed to this development, but the effects of such general programmes should not be over-estimated, for,

- regional promotion is designed solely to compensate the disadvantages of geographical location (for example, Berlin or areas bordering the East (the Zonenrandgebiet));

- the volume of financial aid is relatively modest when compared with the total investments of the sector;

- the sector bears half the cost of the joint research, in addition to the entire cost of research and development by individual enterprises.

II. Reconversion to more competitive lines of production

The general government-aid programmes already mentioned also support reconversion to more competitive lines in the textiles and clothing sector.

III. Deterioration of employment in the textiles and clothing sector

The marked expansion of imports, in combination with stagnation of demand, has resulted in the closing down of very many enterprises and in mass dismissals in the textiles and clothing sector.

The social effects of this development are mitigated with the help of the Law for the Promotion of Employment. The measures provided for by that Law benefit the workers and not the enterprises. This involves improvement of general conditions for structural changes in the economy, and not selective State regulation of the process of restructuration.

IRELAND

Government measures

In the early 1970's the Irish Government commissioned a firm of consultants (Atkins) to undertake a study of the woollen and worsted industry in Ireland. The findings of this survey which included the suggested rationalization/restructuring of the industry were adopted as the official Government policy towards this sector. It was also, at this juncture, seen as necessary, in the context of an overall appraisal of the textiles and clothing industry, that the industry restructure and adapt

COM.TEX/16

itself to conditions to world trade. To this purpose firms in these sectors were encouraged to embark on schemes of rationalization. To facilitate the realization of this objective, grants were and continue to be made available for :

- re-equipment/restructuring;

- research and development projects;

- feasibility studies relating to new products/markets ; and

- consultancy assignments involving the employing of outside technical expertise to study and advise on various aspects of Companies' operations which were, up to recently, also eligible for grant assistance.

A large measure of the indigenous textiles and clothing companies did undertake, with State assistance, such programmes which entailed a:

- rationalization of production in many cases through purchase of new machinery and the scrapping of that which had become obsolete; and

- diversification out of unviable product ranges into either different lines of production or into the manufacture of higher quality products in the same range.

In the case of certain areas of the textiles and clothing industry that were considered as having a viable future, new investment was directed towards these sectors. Certain overseas companies were attracted to the country to establish projects in these lines of production which were seen as having a healthy future; these companies installed for use only the most technologically advanced machinery. Furthermore, it was decided at that time (the early 1970's) to establish a man-made fibres industry in Ireland. A large element of new investment in the textiles sector in the period under consideration consequently, went towards establishing man-made fibre projects which:

- are capital intensive; and

- use the most modern machinery available anywhere.

As the statistics in the accompanying questionnaire show, a significant number of textiles and clothing enterprises in Ireland went out of business in the period under review (1973-1979). In fact the number is greater than

COM.TEX/16

is ostensibly apparent, because closures, in the textiles area in particular, are camouflaged by the commencement of operation of new firms in the more viable areas of this sector, both of which developments occurred in parallel. These were, in the main, companies which:

- did not rationalize their operations and/or

- were unable to cope with competing imports on the Irish market from low-cost sources; and/or

- lost their overseas markets due to competition on these markets from low-cost sources.

Measures taken in cases of threatened closures consist of:

(i) an attempt to find an alternative proprietor to take over the company (about to, or gone out of business) in cases where the new proprietor proposes to carry on a more viable operation in lines which are competitive;

(ii) encouraging the revival of a replacement industry (not necessarily in the textiles business) through grants towards eligible fixed assets.

In cases of cut-backs by textiles and clothing companies which lead to redundancies, endeavours are made (by the National Manpower Service) to identify suitable alternative employment for the persons made redunant.

ITALY

Government measures

As reported last year (GATT document COM.TEX/W/65 of 30 November 1979), Act. No. 1101 of 1971, better known as the "Textile Act", which provided for financial and fiscal aids to the sector, was revoked by Act No. 675 of 12 August 1977-

Consequently, in the total absence of any government measures in respect of this sector in recent years, one can state that all the developments referred to in points 1, 2 and 3 are attributable to internal initiatives within the Italian industry.

COM.TEX/16

LUXEMBOURG

As regards the current state of production and trade in textile products, the sector concerned, which is very small in Luxembourg's economy, is declining steadily (see Annex 1).

There are no specific programmes or measures for recovery and adjustment. The Economic Expansion Law of 28 July 1973 is applicable in theory, but its application is subject to constraints deriving from the special provisions in force in the context of the European Communities.

Extract from:

Federation of Luxembourg Manufacturers

REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR 1978

Some manufacturers of made-up articles increased their turnover slightly in relation to 1977, but production continued stagnant. The increase in the value of sales is attributable to the effects of higher prices for raw materials and wages.

The principal markets are still the Grand Duchy of Luxembourg, Belgium and France.

With cost prices increasing constantly, our manufacturers are less and less competitive in regard to foreign competition with access to cheap labour, such as the developing countries and the Eastern trading area, and likewise Greece and Portugal, which can sell their products at half the price asked by our industries for woven fabric of equivalent quality. Future prospects for our industries are therefore somewhat uncertain.

There was no change in 1978 in the product range offered by our manufacturers of bedspreads, eiderdowns, curtains and hangings. Nevertheless, production figures and turnover were down. Production of quilted coverlets and down-filled coverlets declined, mainly because of the fact that the "Einzieh-Decke" feather-bed, which is fairly cheap and supplied in large quantities by powerful foreign competition, is replacing more and more the traditional articles mentioned above.

Production of curtains and hangings also declined, by 5 to 8 per cent on average.

These declines were offset to some extent by some development in wholesale trade.

More than 97 per cent of sales are in the Grand Duchy, the rest going to Belgium.

COM.TEX/16

Industrial Production Indices (1915 = 100)

Adjusted Indices

Branch of Activity

A. GENERAL INDEX

B. GENERAL INDEX WITHOUT IRON AND STEEL INDUSTRIES

Mining and quarrying

Iron ore extraction Extraction of building materials Slate quarries Stone quarries Sand and pebble dredging

Manufacturing

Foodstuffs industries Dairy industry Milling Miscellaneous foodstuffs Beverage and tobacco industries Beverages Preparation of special wines Brewing Mineral waters, sparkling waters, lemonades, etc.

Clothing and bedding industries Made-up articles and clothing accessories

Wood and furniture industries Printing and publishing Chemical and allied industries Chemical industry as such Tar and bituminous products Paint Other chemical products Rubber industry Processing of plastic materials and production of man-made fibres

% Variation Rate

1978/77

+ 3.2

- 0.6

-32.T

-U6.0 + 7.2 - 9.3 +10.8 + U.2

+ 3.8

+ 2.3 + 3.9 -13.3 + 5-6 - 6.3 - 5.9 -11. U - 5.0 - 7-7

-13.7 -16.O

- 0.7 - 2.0 + 1.0 + U.8 -11.1 + 1.0 + U.5 - 2.2 + 1.5

Jan.-March 1979/78

+ 3.8

+ 1+.9

-27.3

-3U.9 - 8.3 - 7.2 - 8.7 - 7-9

+ 3.9

+ U.8 - 0.5 - 3.1 +10.6 - 5.7 - 8.9 +12.6 -11.6 - 2.8

+29.5 +29.6

+ 5.3 - U.9 + 9.7 - 2.2 +26.6 -11.3 + 5-8 + 0.2 +15.8

April-June

1979/78

+ 5.1

+ 8.7

-21.6

-39-8 +12.0 - 2.2 +16.1+ + U.3

+ 6.2

+ 2.8 + U.3 -21.5 + 8.3 + 9.5 +13.7 +U6.9 +13.5 + 3.2

+19.8 +23.5

+ 6.3 + 2.1 +18.3 - 6.9 +20.9 - 6.0 -10.0 +12.2 +28. U

July-Sept. 1979/78

+ 0.5

- 0.1

- 0.9

- 8.1 + 7.1 -2U.3 +1U.9 - U.9

+ 1.1»

- 3.2 + 0.9 - 7.5 - U.2 + 5.1 + 5-9 +11.0 + 3.7 +15.7

+15. u +16.8

+ 6.U - 0.3 + 3.U - 1.1 +15.7 + 0.7 0

+11.6 + 1.8

Jan.-Sept. 1979/78

+ 3.2

+ 'U.6

-17.9

-30.6 + U.5 -10.9 + 8.6 - 1.9

+ 3.8

+ 1.2 + 1.8 -10.5 + U.2 + 3.U + U.3 +25.0 + 2.7 + 5.U

+21.5 +23.6

+ 6.0 - l.l +10.6 - 3.5 +19.9 - 5.5 - 2.0 + 7-9 +15.5

_ :The indices reproduced above are adjusted indices in the sense that

inequality in the number of working days per month has been eliminated in order to facilitate conjunctural analysis.

COM.TEX/16

Extract from:

Grand Duchy of Luxembourg

"Economic Note Books" No. 57, series A:

"THE LUXEMBOURG ECONOMY OF 1976 and 1977-"

Ministry of the National Economy

STATEC

December 1978

3.27 Clothing and bedding (NACE 1+5 )

The downward trend continued in the clothing and bedding industry. The index declined by 7-5 per cent in 1976 and 13.8 per cent in 1977. This sector is having increasing difficulty in maintaining its position in the face of imports from low-wage countries, resulting in a continuing decline in production and in redundancies.

COM.TEX/16 Page 12*+

NETHERLANDS

State aids

Government measures were designed:

- to encourage investment in equipment in order to improve the programming and efficiency of production;

- to contribute to valorize the production range. It is generally recognized that mass-consumption goods can no longer, or hardly at all, he produced in the Netherlands. The industry must therefore shift tovard high quality products;

- to foster research in the field of market prospection;

- to strengthen the structure of assets;

- to achieve a durable improvement of profitability.

Accordingly what has been achieved, or is the objective, is:

- greater profitability of the traditional production range, not including mass-consumption goods, through improved efficiency;

- adaptation and renewal of the production range through research, so that the undertaking as a whole can offer a better selection of goods and safeguard its competitive position;

- in cases where the possibilities of a given production line are found to be exhausted, active efforts to diversify production, if need be outside the textile field as such.

Within the context of a particular measure, there are incentives to market prospection and to improvement of the positions of undertakings in traditional markets outside the Community and, in parallel, certain facilities designed to encourage a common approach by several undertakings in the context of "group export drives".

I. SECTORAL AIDS

A. Cotton, rayon and linen industry (c.r.l.)

Title : Supplementary assistance scheme for the c.r.l. industry

Purpose : To strengthen the financial position of undertakings and encourage the industry.

COM.TEX/16

In 1976, credits totalled f. 30 million. Until the end of 1978, these credits may be converted into investment premiums (up to 20 per cent of the amount invested).

Until the end of 1980.

"Netherlands Spinning" project

To reduce production capacity by 30 per cent in one year or to restructure capacity.

Subordinated loan to finance movement of machinery and retraining of redundant personnel for other tasks.

1978/79

Restructuring of the c.r.l. weaving and processing sector

To reduce or restructure production capacity

f. 30 million for the transfer of redundant personnel to other activities.

1978/79/80.

Scheme for the restructuring of financing costs in the c.r.l. weaving and processing sector

To transfer and adapt production installations.

f. 18 million.

1979/80.

c.r.l. credit scheme

To strengthen the financial position of undertakings.

Credits (partially) guaranteed by the State with a rate of interest equivalent to the market rate plus a premium for the guarantee by the State.

The scheme entered into force on 1 January 1968 and has been regularly extended, most recently in 1978.

COM.TEX/16

B. Knitted and crocheted goods

Title; General provisions regarding the knitted and crocheted goods industry.

Purpose: To improve information systems concerning the sector and markets.

Aid: Subsidies to the extent of 66 2/3 per cent for group efforts in this field for the benefit of the sector as a whole, f. 1.2 million have been earmarked for this purpose.

Validity: 1978-80.

Title : Investment premium scheme for the socks industry.

Purpose: To encourage investments in machinery so as to contribute to structural improvement in the socks industry.

Aid: A subsidy of up to 20 per cent of the investment cost, f. 1 million have been earmarked for this purpose.

Validity: 19T8-80.

Ti t l e : Overall scheme for the kni t ted and crocheted goods industry.

See "Overall scheme for the ready-to-wear industry".

C. Ready-towwear industry

T i t l e :

Purpose:

Aid:

1977-80 multi-annual programme for the ready-to-wear industry.

S t ruc tura l improvement of the ready-to-wear industry with a view t o a t ta in ing long-term p r o f i t a b i l i t y in I960.

The following instruments have been brought into operation for reaching the objectives of the multi-annual programme.

(a) Overall scheme for the ready-to-wear industry

Under t h i s scheme: a subsidy of up t o 20 per cent of the cost of investments in cer ta in machinery i s granted, and in addit ion there i s the p o s s i b i l i t y of credi t guaranteed by the State (at the market r a t e of i n t e r e s t ) .

COM.TEX/16

(b) Plan of action for ready-to-wear industries

Under this scheme;, undertakings can obtain State intervention in expenditure to improve information, management, organization, efficiency or flexibility of production in the undertaking. This project is therefore in the field of software.

f. 11.5 million have been earmarked for this purpose.

(c) Joint actions

In particular in the field of promoting research, improving market prospection, etc. undertaken for the benefit of the market as a whole and carried out under the auspices of the STRUCON Foundation.

f. 7 million have been earmarked for this purpose (including the equipment costs of the STRUCON Foundation).

Validity: For (a), (b), and (c): up to the end of 1980.

II. REGIONAL AIDS FOR THE TEXTILE AND CLOTHING INDUSTRY

In practice, such measures are rather rare for the textile and clothing industry. Sectoral allocation of regional aids in not generally known.

UNITED KINGDOM

Government adjustment measures

In a market economy such as the UK's the processes of adjustment derive from market forces rather than from Government action. It is not possible to distinguish between measures to improve viability of existing lines of textile production and those designed to encourage a move into more viable lines of production. Moves to other industrial sections have taken place autonomously, but regional policy, for example and other measures of general support (see below) will have played a part in assisting the creation of alternative jobs in other industries in textiles areas and elsewhere. Redundancy payments -financed by employers generally - to those workers in textiles and clothing (as in other industries) losing their jobs will have helped some of the displaced workers make the transition to new jobs.

Essentially it has been the textile and clothing industry itself which has been responsible for the adjustment and restructuring which has taken place, and which has decided on the necessary steps to make itself viable and competitive. There have however been specific sectoral schemes of support for rationalization and modernization in the clothing and wool textiles sectors, aimed at encouraging and assisting the process of adaptation which has been brought about by market forces (see below).

COM.TEX/16

Most of the Government measures listed have "been of the "pump-priming" type, and have contrihuted to other industrial sector to the considerahle restructuring, rationalization and investment in new equipment that has taken place in many sectors of the textiles and clothing industry, and supported moves into new product lines.

(i) Regional assistance

Although essentially designed to achieve regional objectives, Government Regional Financial Assistance has played a part in the adjustment process for those textiles and clothing firms eligible for this form of support. In July 1979 the Government announced important changes in regional assistance. A strong regional industrial policy is to be maintained broadly along the lines of past policy but is to be made more selective.

The areas eligible for regional assistance are to be reduced and will cover about 25 per cent of the employment of the country compared with just over kO per cent at present. Important areas for cotton and allied textiles, woollen and worsted textiles, and clothing will cease to be eligible for regional assistance. The financial assistance in the form of regional development grants is to be reduced; Government factory building will continue but with a greater element of self-financing; and the criteria for regional selective financial assistance for viable investment projects with a clear benefit to employment have been tightened to make the scheme more cost-effective. Applicants now have to demonstrate clearly that regional selective financial assistance is necessary to enable a project to go ahead. A test of efficiency is also applied so that the projects supported are those most likely to strengthen the regional and national economy and thereby to promote more productive and secure jobs.

(ii) Employment measures

In April 1978 restrictions were placed on the amount of Temporary Employment Subsidy which firms in textiles and clothing could receive, and approval of applications from firms in these sectors for TES for more than 125 people for over six months was made conditional on approval of a restructuring plan. The TES scheme closed for applications on 31 March 1979, which means that no firm received the subsidy beyond April 1980.

A scheme of support for short-time working in textiles, clothing and footwear was introduced in May 1978 to protect jobs which would otherwise be at risk of redundancy as a result of the limitations on the use of the TES scheme. In April 1979 this was replaced by a general Temporary Short-time Working Compensation Scheme (not confined to textiles, clothing and footwear). Employers who are prepared to introduce short-time working as an alternative to redundancy may under certain circumstances receive compensation for six months for the payments which they make to the employees concerned.

COM.TEX/16

(iii) Selective investment facility

First introduced in December 1976, this is designed to promote projects which lead to identifiable improvements in industrial performance. From June 1979 stricter criteria are being implied. Assistance is normally in the form of revenue grants. The facility is available on a selective basis to industry generally, not just textiles and clothing.

(iv) Sectoral assistance schemes in textiles and clothing

A. Wool textiles

Under the sectoral scheme of assistance for wool textiles - one of the more fragmented sectors in textiles - one of the aims was to achieve restructuring and rationalization without an overall increase in capacity. Structural change was seen as taking two forms: a reduction in the number of establishments (rationalization of products and a reduction in the number of organizations (take-overs, mergers)). The scheme was announced in July 1973 and applications had to be received by 31 December 1975. Applicants had until 31 December 1977 to complete approved projects. A second more limited scheme was announced in November 1976 with the aim of further encouraging rationalization and restructuring in order to secure the fullest benefit from the investment generated under the first stage scheme. Applications had to be received by 31 December 1977 but firms had until 31 December 1979 to complete their projects.

Assistance under the first stage wool textile scheme was broken down into four categories. The first category covered re-equipment, the second category re-equipment and re-building and category 3 covered more comprehensive expenditure on rationalization or amalgamation. The fourth category made assistance available in the form of redundancy payment for closure of companies or production units.

The main result of the first stage Wool Textile Scheme has been the modernization of plant, machinery and buildings, bringing about investment of some £59 million in plant and machinery and £22 million in building works over the period 197^-1977- Total Government expenditure under this first stage Wool Textile Scheme in respect of capital investment will amount to about £16 million.

The second stage of the Wool Textile Scheme was announced in November 1976. This was principally concerned with further rationalization of capacity. Applications had to be submitted by 31 December 1977 and projects to be completed by 31 December 1979 if they were to be eligible for support. Expenditure on the second stage scheme is not expected to exceed £7-5 million.

COM.TEX/16

Assistance under the scheme was designed to encourage modernization linked with internal rationalization or external merger, by providing assistance in the form of loans at concessionary rates of interest, or, preferably, interest relief grants on national loans, for up to 50 per cent of the qualifying expenditure; plus grants for investment in new machinery and building as an integral part of such a project at the rate of 20 and 30 per cent respectively. The scheme was also designed to help firms employing fewer than 500 by providing a 50 per cent grant for the use of consultants to examine ways and means of improving productivity and efficiency generally.

B. Clothing

The Clothing Industry Scheme was designed to improve efficiency anJ productivity and to encourage the industry to rationalize restruoi into more efficient units, without an overall increase in the capacity pf the industry.

The scheme was announced in October 1975. It closed to applications at the end of 1977 and projects must be completed by 31 December 1979 in order to qualify for assistance. Support was available for consultancy fees, for investment projects and for restructuring or re-organization. Approaching £20 million Government assistance was committed under the scheme.

A Clothing Industry Productivity Resources Agency has been established with assistance from the Government to help to improve the industry's productivity performance.

(v) Research in textiles and clothing

Research in the United Kingdom industry has been encouraged through levies (in some sectors) to research associations which also do consultancy work for firms on a consultancy basis. Some Government finance is available to support cost-shared research and development projects in the industry and with textile and clothing research associations/institutes.

(vi) Training

There are also Industrial Training Boards covering most sectors of the textiles and clothing industry, mainly self-financed from levies on firms. Where shortfalls in required skills are perceived and where the resources of the ITBs are insufficient to provide them, proposals may be submitted to the Manpower Services Commission for Government support under its Training for Skills programme, provided the appropriate criteria are met.

The Department of Employment may agree a sponsored training programme with any employer where spare facilities for instruction are available at one of the skill centres provided by the Government as a service to industry. A further scheme provides for speculative retraining for occupations not specific to any particular industry: for example, an individual might acquire engineering skills under such arrangements and might then apply these skills in any one of a number of industries.

COM.TEX/16

EGYPT

The Egyptian textile industry has been urged to improve its industrial structure in spinning, weaving, arid finishing capacity, after continued economic difficulties for some years.

The industry itself is responsible for adjustment and restructuring, to cope with changing consumer requirements and the developing pattern of international trade, and the introduction of improved methods of production, together with an overall increase in productivity.

Some semi-governmental bodies are providing testing facilities, technical consultancy and helping in developing new products and processes.

Within the framework of the adjustment measures taken by the textile industry, efforts have also been made to move into more viable lines of production, for example by including new sections such as garment units.

Modernization and replacement are financed by aid loans from several international sources together with government credit guarantees available for such purpose.

Foreign investments are recording a positive role in knitting and ready-made joint ventures both locally and in free zone as a response to Egyptian Act No. U3 of 191k.

Some well equipped joint projects have started operations and proved their high efficiency.

All such projects have to be examined by the General Organization for Arab and Foreign Investment and Free Zones, to decide their profitability and contribution to our national economy.

This trend of increasing production, efficiency, and diversification, together with more quality textile and clothing products, has led to a situation in which more attention is given to problems connected with both securing the supply of raw materials - cotton - yarns - fabrics - for different sections of the textile industry, and in the export field.

COM.TEX/16

FINLAND

(A) Autonomous adjustment processes

In Finland the principal responsibility for adjustment to changing market conditions lies with the industry itself, like in other market economy countries. Finland is heavily dependent on foreign trade, which makes a continuous autonomous adjustment process a necessary element in running the national economy effectively. Accordingly, the firms have adjusted themselves by various means e.g. by cutting down unprofitable lines of production, laying emphasis on the profitability of products by raising the degree of processing, specializing on certain products, and promoting product design.

Transfer to further processing of semi-finished goods has also occured, alongside with other measures in favour of the adjustment process. Especially in the cotton industry the domestic production of certain types of yarns and fabrics has been replaced by imports from developing or newly industrialized countries. The knitwear industry is also gradually moving towards a higher degree of processing by developing fashion oriented products. This trend is supported by the governmental programme for training designers for the Finnish industry.

(B) Government measures

Due to the difficulties in the Finnish textile and clothing industries which had, in the beginning of the TO's, become increasingly severe leading to considerable problems in production and employment, a special governmental committee was established with the task of examining the present and future problems in the branch and of proposing measures by which they could be tackled. The committee gave its report in 1978. Most of the proposals were aimed at assisting the adjustment process by product development and other measures. The measures envisaged in the committee's recommendations have yet to be implemented. For the time being there is no specific comprehensive State programme on adjustment assistance for the textile and clothing industries in Finland.

(i), (ii) and (iii) Support for research and development activities is available to the industries generally, possibly affecting the viability of current lines of production as well as the ability of the industry to move to more viable lines of production. The regional support programmes (loans and interest support) aimed at promoting balanced economic development in less-favoured northern and eastern regions of Finland have similar effects. These programmes also take into account the prospective international

COM.TEX/16

competitiveness of the firms applying for assistance. No specific measures have been taken in order to move industry from the textiles sector into other sectors of the economy. A quantitative evaluation of the effects of the aforementioned programmes has not "been found possible.

During the economic recession in mid-70's, when unemployment reached a record level in Finland and when several closures took place in the textiles and clothing industry, the Government of Finland decided to buy certain firms threatened by closures. This decision was taken in order to smoothen the adjustment process and let it happen in socially acceptable conditions. As a result of these purchases a State-owned firm VALVILLA Ltd. was established. Today there is a programme for the gradual phasing out of the unprofitable entities and lines of production of this firm.

A programme for the retraining of unemployed workers is also operated for the industries generally, covering thus also the textiles and clothing sector.

(C) Increasing access to the market

The textiles and clothing imports are mainly free from quantitative restrictions. A very limited number of sensitive products is subject to restrictions agreed through bilateral negotiations in the framework of the MFA. Previous quantitative restrictions have been liberalized in 1979 in the case of Poland, when a free trade agreement between Finland and Poland was concluded, and in 1980 in the case of the Republic of Korea, with which Finland concluded an agreement under Article h of the MFA. Finland is promoting textiles imports from developing countries i.e. by granting GSP treatment to certain textile products when imported from developing countries. Consequently the developing countries have been able to double their share of the total textile and clothing imports in the 70's. Even imports of the products under restrictions have increased considerably. (See Annex l).

ANNEX 1 ^ S p Q fD •

Importa of T e x t i l e and Cloth ing Items under B i l a t e r a l l y Agreed H g (MFA A r t i c l e 4) R e s t r i c t i o n s a t 31.12.1979 £ . *

H

WOMEN'S BLOUSES WOMEN'S AND GIRLS' MEN'S AND BOYS' MEN'S AND BOYS' UNDERWEAR UNDERWEAR SHIRTS

CCCN 6l.02.502/506) CCCN 60.Ok.812/813, 815/817) {EOT 60.OU.712/713, 715/717) «EOT 6l.03.102/109'

Year

1970

1971

1972

1973

197U

1975

1976

1977

1978

1979

1,000 p i e c e s

213

173

389

1,005

76U

768

1,036

1,207

1,253

1,557

1,000 Fmk c i f

1,739

l ,8 l l*

3,638

7,975

7,661»

7,239

9,570

15,912

17,617

2U,312

1,000 p i ece s

fc,926

I*, 1*1*2

It,1*56

5,750

5,857

U.832

6 58U

1,000 Fmk c i f

7,3U0

8,990

9,507

12,01*9

15,259

15,272

21,508

1?000 p i ece s

1,212

1,399

1,665

1,960

2,552

1,992

3,302

1,000 Fnk c i f

2,726

3,915

5,762

6,772

10,518

10,658

16,735

1^000 p i e c e s

1*87

1*19

911

1,863

1 > 5 3

1,765

989

1,622

1,595

2,276

1,000 Fok c i f

fc.567

lt3270

8,9U8

163155

16,066

19,728

lfc,899

23,753

2l*,992

38,1*06

http://6l.02.502/506

COM.TEX/16

BRASSIERES BED LINEN (CCCN 61.09.201) (CCCN 62.02.115/119) (105)

Year

1970

1971

1972

1973

197**

1975

1976

1977

1978

1979

1,000 pieces

233 28U

580

807 926

1,212

1,161»

97»*

1,066

1,109

1,000 Pmk cif

1,229

1,169

2,8U8

U,693

6,069

8,8Ul

8,895

8,310

9,695

10,972

Tons

212

32U

501

630

1*29

U59

507

325

367 UU2

1,000 Fmk cif

3,065

U,357

8,232

11,U01

8,678

10,Ul9

11,310

7,750

8,3^2

11,987

COM.TEX/16

HONG KONG

Information on Production. Trade and Adjustments in the Textiles and Clothing Sector

In response to GATT/AIR/l6l2, are available statistics showing the latest developments in the productive capacity, employment and wage indices in respect of Hong Kong's textiles and clothing industries.

Regarding paragraph 1(B) of GATT/AIR/I612, since the Hong Kong Government pursues a policy of free trade and free enterprise, there are no government plans for the expansion or re-organization of the textiles and clothing industries. Other than the prevision of infra-strucvural and other essential facilities for the development of industries and trade generally, the Hong Kcng Government does not interfere with the plans of private industries. Consequently, it has no information on any such plans.

Information on Production Capacity, Employment and Wages for the Kcng Kong Textile and Clothing Industry

(A) Spinning sector:

Year

197T

1978

1979

Es tab l i shments

No.

289

295

273

As % of t o t a l manufacturing e s t a b l i s h m e n t s

0 . 8

0 .7

0 .6

Employment

No.

23,130

20,998

21,081

As % of t o t a l manufacturing

workforce

3 .1

2 .6

2.1»

Product ion capac i ty

Spindles i n s t a l l e d

(•000)

893

8U8

868

Yarn p roduc t ion

(mn. Kg.)

215

222

239

COM,TEX/16

(B) Weaving sector:

Year

197T

1978

1979

Establ i shments

No.

6UU

696

739

As % of t o t a l manufacturing e s t ab l i shmen t s

1.7

1.7

1.7

Employment

No.

29,271

30,U2U

32,832

As $ of t o t a l manufacturing

workforce

3.9

3.7

3 .8

Product ion capac i ty

Looms i n s t a l l e d

Cooo)

30

30

32

Product ion of

piecegoods (mn. sq .m.)

778

792

8U8

(C) Clothing sector:

Year

1977

1978

1979

Es tab l i shments

No.

8,0U7

8,68U

8,796

As % of t o t a l manufacturing e s t a b l i shment s

2 1 . k

2 1 . 1

20 .8

Employment

No.

239,058

256.15U

260,615

As % of t o t a l manufacturi ng

workforce

31.7

3 1 . h

29.9

Donest ic expor t s

Domestic Exports (HK Mn$)

13,909

15,709

20,131

As % of t o t a l Hong Kong Domestic

Exports

39.7

38.6

36.0

(D) Other textiles sector:

Year

1977

1978

1979

Es tab l i shments

No.

2,788

2 j l * 3

2,61*5

As % of t o t a l manufacturing e s t ab l i shmen t s

7.1*

6 .7

6 .3

Employment

No.

50,060

U7,l85

U6,912

As % of t o t a l manufacturi ng

workforce

6.6

5.8

5.U

COM.TEX/16

(E) Index of average daily wages1 (July 1973-June 1974 • 100):

Industry

Textiles

Bleaching and dyeing

Cotton knitting

Cotton spinning

Cotton weaving

Woollen knitting

Garments

Gloves

1977

Mar.

128

129

136

121

136

129

129

132

Sept.

137

lUl

135

131 lUl

lU7

133

1 3 5

1978

Mar.

1U8

156

lU9

135 152

157

1UU

147

Sept.

l60

168

160

1U9

16U

167

153

153

1979

Mar.

176

179

170

165 180

184

180

163

Sept.

185

189

183

170

. 191

187

182

166

Including fringe benefits.

Source : Census and Statistics Department, Hong Kong

COM. TEX/16

INDIA

Information on Production» Trade and Adjustments in the Textiles and Clothing Sector

A. Recent developments in investment, productive capacity, employment etc. for textiles and clothing

1. The textiles sector in India forms a major segment in the industrial scene of the economy. As a large industry, it constitutes 19.61 per cent of the comparative weightage of industrial production. At the same time, unlike the structure that is seen in many other countries, the Indian textile sector presents side-by-side a major complement of both the medium level and small-scale industrial production, reflected in the powerlooms and handlooms. All the three sectors together produce about 9-5 billion metres of cloth.

2. Cotton textile industry dominates the textile industry, followed by man-made fibre industry and woollen industry. India follows a multi-fibre policy in regard to cotton and man-made fibre industry. The table below gives the production figures of cotton yarn and blended/mixed man-made fibre yarn and fabrics for the last five years.

Year

1971+-75 1975-76 1976-77 1977-78 1978-79 (Prov.)

Cotton yarn

(million kgs.)

1,025 1,002 963 8U3 9 7

Staple fibre spun yarn and blended yarn

(million kgs. )

90 103 162 306 325

Total spun yarn

^million kgs.)

1,115 1,105 1,125 1,1U9 1,272

Mill-made cotton cloth (million metres)

U,U50 3,962 3,739 3.1UU 3,317

Mill-made blended/ mixed man-made woven fabrics (million metres)

ll*2 258 1*2U 992

1,008

Handloom and power-loom cotton and blended/ mixed cloth (million metres)

3,901 1*,289 U,238 U,35U 5,08U

Total cloth (million metres)

8,1*93 8,509 8,1*01 8,1*90 9,^09

3. The average rate of growth of fabrics production has been around 1.5 per cent per annum which is much less than the 2 per cent average rate of growth of population.

COM.TEX/16 Page ll+O

k. The machine capacity in the last few years has been almost stagnant. While there has been a slight increase in the spindleage from 19.29 millions in 1976 to 20.08 millions in 1979, the number of total installed looms has fallen from 207.7 thousand to 207.0 thousand during the same period. Only 21 per cent of the looms are automatic looms (unlike countries like Canada, the United States, Hong Kong, South Korea, Malaysia, the Philippines, West Germany, Switzerland where it is cent per cent).

5. A major portion of India's textiles is manufactured in handlooms and cotton/art-siIk powerlooms sectors and only a minor portion is manufactured in the mill sector having both spinning and weaving capacities, as will be seen from the table below.

1977-78 Sector-Wise Production (million metres)

Sector

Mi l l Handloom Cotton powerlooms A r t - s i l k powerlooms

To ta l

Cotton

3,162 2,01+0 1,61+0

6,81+2

Blends

980 189 115 31+6

1,630

Art s i lk

6

1 , 0 2 2 ^

1,028

To ta l

l+,ll»8 2,229 1,755 1,368

9,500

— Includes 200 million metres from organized art-silk powerloom units.

6. The number of powerlooms in decentralized sectors is estimated at 271,000 looms in the cotton sector and 150,000 looms in the art-silk sector. These are run only by small entrepreneurs and they are operated in their houses and sheds.

7. Handloom is by far the most important cottage industry of India, spread throughout the country and in almost every village. The work is done in the home of the weaver himself. It constitutes a vital sector of India's village economy, next only to agriculture. With 3,891,000 handlooms, this sector accounts for about 30 per cent of the cotton textile produced in the country and over ten million people are directly employed in handloom weaving and associated activities while an equal number are employed in technical, commercial and service sectors linked to handlooms.

8. There is a small sector in India which is called the Khadi sector where the yarn is spun by hand and the cloth woven on handlooms. Khadi. utilizes both cotton and silk and the production was l60 million metres in 1977-78.

COM.TEX/16 Page lUl

9. The woollen industry is a marginal textile activity and is divided into the worsted sector, woollen sector and shoddy sector. The installed capacity and actual production during 1977-78 are given below:

Sector

Worsted spindles Woollen spindles Shoddy spindles Combing Powerlooms -worsted/woollen

Shoddy

Installed capacity

220,772 135,000 39,000 23.30 m. kgs.

1*,693 76

Actual production for 1977-78 (million kgs.)

12.0 15.0 5-5 ll*.0

20.0

Clothing sector

10. There has not been any organized garment industry in India for quite some time. However, the production of garments which is mostly in the cottage sector, has increased recently for organized commercial purposes, viz. exports. The following figures would show the growth of this industry and exports in the last nine years.

1970 1971 1972 1973 197U 1975 1976 1977

1978 1979

(Provisional)

Total exports of garments (in million rupees)

115.10 155.20 293.20 537.70 950.00

l.UOO.OO 2,U00.O0 2,320.00 (of which

cotton garment 2200)

2,870.00 3,1*30.00

Index (base year 1970)

100 135 255 U67 825 1216 2085 2016

2U93 2980

COM.TEX/l6 Page l!+2

B. Government and other plans for the expansion of the textile and clothing industry, including aids for the realization of such plans. Any Government schemes adopted or contemplated for reorganization, modernization or diversification of the industry and an assessment of their effect. Extent to which Government plan to develop particular sectors of the textile and clothing industries - for supply to traditional export markets; for supply to new export markets; for domestic consumption

and

C. Any other measures or policies that would be relevant to the work of the Committee including measures and policies having a bearing on the expansion and liberalization of trade in textile products

1. The textile industry has been stagnating due to various reasons since 1973. The basic reason behind the stagnation has been the fall in effective demand which aggravated the other adverse factors like long-time neglect of modernization in the industry and the unregulated raw material situation. However, in recent times the situation is found to be taking a turn for the better. All round, a revival of demand is witnessed reflecting in better production, turnover and stock position. The somewhat comfortable position in the availability of non-cotton fibre and the emphasis on and facilities provided for modernization of the industry have had a desirable effect in toning up the textile sector.

2. The Government's policy is aimed at achieving the multi-cornered objective of making available larger quantities of quality cloth at reasonable prices to the masses and at the same time introduce the necessary overtones for proper industrial growth, which gives priority to employment oriented growth through the decentralized sector of the handloom and khadi. In addition, the desired balance between cotton and non-cotton fibre will be brought about.

3. Following are some of the steps taken in this direction:

(i) Handloom production; The handloom sector has been assigned an important rôle. Most of the additional requirement of cloth will be met by the handlooms. The production will be stepped up. With a view to achieving this objective and to providing all the support for future growth to the handloom sector it has been decided to contain weaving in the organized and powerloom sectors of the cotton and art-silk textile industry to their present level. The sector will also be developed to take up the entire production of controlled cloth in a phased manner. All assistance and support for proper development of the sector are provided by the Government. The spinning capacity is being expanded with a view to providing enough yarn at reasonable prices to the handloom sector to meet its additional demand for achieving its target of production.

COM.TEX/16 Page lU3

(ii) Cotton will be used by the mills to the extent of its availability along with synthetic fibres. However, the use of synthetic fibres will be regulated to safeguard the interests of cotton growers.

(iii) Government have allowed unrestricted installation of spindles for manufacture of cotton and man-made fibres to the extent of 50,000 spindles but for increasing loomage capacity prior approval will be required.

(iv) The cotton textile industry has realized the need for quick yielding modernization programmes with necessary stress on exports. The policy of allowing the indigenous textile machinery industry to import know-how from various reputed machinery makers from abroad so as to upgrade their technology and making available to the textile mills modern machines from within the country has paid rich dividends. The machines of high technology which cannot be produced in the country are allowed to be imported. Banking institutions provide necessary working capital to the mills and also soft loans to the needy textile mills for their speedy rehabilitation and modernization.

(v) A large number of uneconomic or closed textile mills have been taken over by the Government undertaking - the National Textile Corporation -so that these could be run on more viable lines and also to stabilize the employment potential in the industry. The Corporation has been fashioned as a pace setter for the production of quality textiles which would be required by the common man.

(vi) Basic raw materials like man-made fibres are allowed to be imported under what is known as the Open General Licensing System, i.e. imports are allowed without restrictions. These provisions have greatly enhanced the flexibility of the textile mills to manufacture the type of fabrics needed either in the home market or for the export market.

h. In regard to the woollen industry, the Government has delicensed the expansion of shoddy/woollen/worsted spindleage. Raw materials like raw wool, shoddy, woollen rags, etc. can now be imported under the Open General Licensing System.

Exports

5. The weightage of textiles in total organized industrial production of Indii is 20 per cent, but the exports are limited to 15 per cent of all commodity exports, inclusive of decentralized sector. This will be seen from the statement at Appendix I showing exports of various items of textiles and also total exports of India vis-à-vis that of textiles. The figures are in value terms and not in quantity terms. Quantitatively exports are more or less

COM.TEX/16 Page Ikk

stagnant showing very marginal growth rate over the few years. Value increased because of general phenomenon of global increase in prices. Owing to the protectionist measures taken by the importing countries, India's exports (except for garments) have been stagnant during the last five years. The exports are limited to 10 per cent of the domestic production.

6. The main feature of India's garment exports is that it is centred in limited territorial regions, i.e. mainly EEC areas, the United States and Japan. Besides, even in these areas the exports are virtually limited to only popular items like shirts, blouses, dresses, skirts and trousers. With the imposition of hard quota limits and their meticulous administration by importing countries, there is very little chance of increasing India's exports of these items in these areas.

7. Apart from bilateral quota limitations, there are other tariff and non-tariff barriers which are affecting our exports of textiles. In sharp contrast to this, India has liberalized the import of synthetic fibre, filament yarn, machines for garments and made-ups, spinning and weaving machines etc. which are supplied by developed countries. All these items are placed on the Open General Licensing System, i.e. without any import restrictions.

Value of Export of all Textiles f r o i 1971-72 to 1978-79 and April/September 1979-80 and Index Base Year 1971-72 - 100

Value in Rs. crores

[

Year

1

1971-72

1972-73

1973-74

1974-75

1975-76

1976-77

1977-78

1978-79

1979-80

Cotton Textiles Including H/L textiles

T.val.

2

133.19

183.43

319.71

343.17

380.74

646.80

603.52

663.67

750.00

Index

3

100.00

137.72

240.04

257.65

285.86

485.62

453.13

498.29

564.00

Man-made Textiles

T.val.

4

9.85

10.91

33.24

20.60

17.68

38.52

32.32

41.80

37.00

Index

5

100.00

110.76

337.46

209.14

179.49

391.07

328.12

424.37

376.00

Silk Textiles

T.val.

6

7.59

9.15

14.46

12.06

17.53

20.04

33.05

43.61

50.00

Index.

7

100.00

120.55

190.51

166.80

230.96

316.73

435.44

574.57

659.00

Woollen Textiles

T.val.

8

35.22

48.20

45.42

57.86

88.79

113.54

125.63

115.14

126JXF

Index

9

100.00

136.85

128.96

164.28

252.10

322.37

356.70

326.91

360.00 Carpets

Total Exports all

Textiles

T.val.

10

185.85

251.69

412.83

434.29

504.74

822.90

794.52

864.22

963.00

Indian exports of all

commodities

Index

11

100.00

135.43

222.13

233.68

271.58

442.78

427.51

465.01

520.00

T.val.

12

1,608

1,971

2,523

3,331

4,043

5,089

5,404

5,645

% of 10 to

12

Index

13

100.00

122.57

156.90

207.15

251.43

316.48

336.07

351.06

14

11.56

12.77

16.36

13.04

12.48

16.17

14.70

15.31

Inclusive of carpets at Rs. 91 crores

COM.TEX/16 Page 1 +6

INDONESIA

P.orli? to GATT Questionnaire GATT/AIR/1612

A. Development programme of the textile industry as part of the ::Five Year Plans1' is given in the following figures:

Production of Textiles

Description

Synthetic fibre )

Filament )

Cotton yarn )

Blended yarn )

Textile (gross;

Garment

Export

Unit

ton

bales

million metres

million dozen

million metres

1979 (End of second

:'Five Year Planî;)

68,075

837,212

1,576,300

lU,Uoo

37,500

198U (Target of third "Five Year Plan")

157,500

1,5^0,000

2,500

23 280

Direct Employment in the textile industry is estimated at about 350,000 people in the machine/mechanical sector and about 350,000 people in hand-operated sector (including batik).

B. In the third Five Year Plan (1980-198U) the textiles industry is directed towards integration of existing units and spreading of location to the outer islands (as now the industry being concentrated on the island of Java).

Also development of "bonded area" or export processing zones is envisaged, to facilitate export of textiles and garments in the framework of diversification of the country's export.

COM.TEX/16 Page Ikf

Incentives for investment are formulated in the so-called "Priority Scale List:' of investment, with variable tax incentives and credit facilities,

C. Becoming a member of the M.F.A. (1978), entering into negotiations with importing (developed) countries, ere part of the expansion programme of the textile trade.

D. Because of the low wages, prices of Indonesian textiles are competitive3 and Indonesia feels that as a new entrant in the international textile trade it is entitled to favourable considerations by (developed) importing countries (M.F.A. Art.6).

The general policy in the development of Indonesia is more equitable distribution of gains of economic growth, spreading of location, and employments as to benefit the people at large.

COM.TEX/16 Page lU8

ISRAEL

Replies to GATT Questionnaire GATT/AIR/l6l2

Information on production and adjustments in the textiles and clothing sector:

1. Gross investments in 1978 and 1979 in the textile and apparel industries ;

2. Production 1978 and 1979 in the textile and apparel industries;

3. Annual average employment in the textile industries.

The data on production appears in total value only. For most of the items no quantitative data is available.

As for the government policy vis-à-vis the textile indurtry, no official planning exists, and there is no special government policy concerning encouragement of the expansion of this sector. Israel import policy remains liberal as a whole.

Imports of textiles amounted in 1978 to about $180 million.

COM.TEX/16 Page 1U9

1.

2.

EMPLOYMENT IN THE TEXTILE AND

1979

Textile industry

A.

B.

C.

Total number of employees

Production workers (percentage)

Average hours worked per week per

Apparel industry

A.

B.

C.

Total number of employees

Production workers (percentage)

Average hours worked per week per

APPAREL INDUSTRIES

Annual average

23,900

86.8$

worker Ul.3

33,100

91.62

worker 39•5

Textile 1

Apparel

Total industry

Textile

Apparel

Total ir dustry

GROSS INVESTMENT IL

(ex

(ex

(millions

1978

560

230

diamonds)

10,955

f CURRENT PRICES

of I£)

PRODUCTION

(millions

1978

10,370

11,180

diamonds)

181,980

of I£)

1979

1,010

U30

19,725

1979 (in 1978 prices)

10,750

11,300

19^,325

1978/79 (Real increase)

.1

10.0

5-9

1978/79 (Real increase)

3.7

1.1

6.8

COM.TEX/16

JAPAN

Information on Adjustment Measures in the Textiles and Clothing Sector

(GATT/AIR/I61D

I.

A. Autonomous adjustment

The Japanese textile industry experienced a long-term recession after the oil crisis. The production of textiles decreased sharply for the two consecutive years after the peak year of 1973. Although production registered moderate growth in recent years, it still remains far below the 1973 level.

Furthermore, the industry's international competitiveness has declined in the face of rapid growth of textile industries in the neighbouring developing countries.

The Japanese textile industry has been making efforts to meet such circumstances by promoting the joint disposal of surplus facilities as well as by strengthening its information gathering capacity, fully taking into account the reasonable international division of labour and avoidance of conflict with the neighbouring developing countries.


(i) and (ii)

The textile industry in Japan is facing rapidly changing circumstances; externally, it has lost its competitiveness, internally, it has experienced stagnant growth in domestic demand and significant changes in consumer's needs towards higher quality products and more diversified and individualized products.

In order to cope with such a situation, the Japanese textile industry has been urged to make efforts to produce those products which do not bring about unnecessary competition with the lower or medium grade textile goods produced by the neighbouring developing countries through the development of new products and new techniques and the strengthening of its information collection ability, as well as to establish a system for promptly responding to the changing consumer needs. Basically, this should be pursued through the efforts of the industries themselves. However, small-scale enterprises whose business foundation is weak constitute the greater part (99.7 per cent at the end of 1975^ of the textile industry, and it is most difficult for those enterprises to cope with the circumstances by themselves.

COM.TEX/16

Accordingly, the Government has been implementing measures for strengthening the capability of developing new products and new techniques in accordance with the Law for Temporary Measures concerning Structural Re-organization of the Textile Industry, enacted in July 197*+ with a view to assisting the industry in its efforts for structural improvement.

To put it concretely, the Japanese Government has been making efforts to assist small and medium-sized enterprises to secure the necessary funds for implementation of the structural re-organization programme approved by the Minister of International Trade and Industry.

(iii)

(a) Even in the course of the structural re-organization referred to above, some of the enterprises have been forced to withdraw from the textile sectors owing to such factors as decline in international competitiveness. As it is appropriate for these enterprises to convert to other sectors from the viewpoint of evolution of the Japanese industrial structure, the Government has taken measures to support the business conversion of small enterprises including those of the textile industry in accordance with the Act on Provisional Measures for Business Conversion of Small and Medium Sized Enterprises. To put it more concretely, special monetary and tax measures will be applied for the business conversion programmes approved by the Ministry of International Trade and Industry.

(b) The Japanese textile industry has come to hold immense surplus facilities resulting from the recession initiated by the oil crisis in 1973 as well as decline in international competitiveness. In view of the fact that the existence of redundant facilities has unfavourable effects on demand and supply conditions, these facilities have had to be disposed of as soon as possible. Although these disposals should be principally pursued by the enterprises themselves, it is difficult for them to do so owing to shortage of funds. Accordingly, with a view to supporting efforts by the enterprises, Government-related financial agencies provide loans for small and medium-sized enterprises which jointly undertake disposal programmes of surplus facilities. This scheme also has effects of promoting withdrawal from the textile sector of the enterprises which have redundant facilities. Under this scheme, roughly 20 per cent of the facilities have been disposed of in the total textile sector.


As of now, Japan does not maintain any restrictive measures on textile products which are covered by the Arrangement. Under the circumstances, imports increased sharply in 1978 to a level 71.3 per cent above the previous year in quantity. It continued to

COM.TEX/16

show high growth in 19791 an increase of 23.7 per cent in quantity over the previous year. On the other hand, exports declined substantially for the two consecutive years, registering a decrease of 15 per cent in quantity in 1978 from the previous year and of l6.2 per cent in quantity in 1979 from the previous year.

II. International competitiveness has declined sharply in the face of rapid growth of textile industries in the neighbouring developing countries, as well as sudden and sharp appreciation of yen. However, the textile industry in Japan is making efforts to cope with those circumstances by strengthening its information-gathering capacity, fully taking into account the merit of reasonable international division of labour and avoidance of unnecessary competition with the neighbouring developing countries.

Information on Production, Trade and Adjustments in the Textiles and Clothing 8ector

(GATT/AIR/I612)

l.(a) The Japanese textile industry is in an extremely difficult situation owing to the decline of domestic demand caused by stagnant expenditure on clothing and also due to declining exports and increase in imports resulting from the rapid growth in the textile industry in the neighbouring developing countries and the appreciation of the yen. Under the circumstances, the textile industry is making efforts to reduce surplus facilities through such measures as joint disposal programmes, under which roughly 20 per cent of the facilities have been disposed of in all sectors of the textile industry. Furthermore, bankruptcies registered a record figure of 1,328 in 1977 involving a total amount of debt of ¥ 390 billion, and are continuing to increase in number. Meanwhile, employment in the textile industry has been falling year by year, showing a decrease of 300 thousand persons, or 16 per cent, during the period 1970-1979.

(b) Government measures

The textile industry in Japan is facing rapidly changing circumstances; externally, it has lost its competitiveness, internally, it has experienced stagnant growth in the domestic demand and significant changes in consumer's needs towards higher quality products, more diversified and individualized products.

In order to cope with such a situation, since 1971* the Japanese textile industry has, while pushing forward the programmes for disposal of redundant facilities and making efforts to avoid unnecessary competition with the neighbouring developing countries, been striving for the development of new techniques capable of producing textile goods which nay meet changing consumer needs.

COM.TEX/16

The Government, for its part, in view of the fact that small-scale enterprises whose business foundation is weak constitute a greater part of the textile industry, has been implementing measures for the strengthening of the industry's capacity to develop new manufacturing techniques and its information collection ability, in order to assist the industry in its efforts for structural improvement in accordance with the Law for Temporary Measures Concerning Structural Re-organization of the Textile Industry, enacted in July 197^, which is in application until May 198J+.

In the course of the structural re-organizations of the textile industry towards strengthening of the information-gathering capacity, the rôle of the apparel industry, which is the closest to the consumers in the textile sector is most important. However, the Japanese apparel industry has a relatively short history and is very weak in its information-gathering capacity such as commodity planning. Therefore it cannot play its expected rôle.

Under the circumstances, with a view to strengthening the information-gathering capacity in the apparel industry, the Government has taken measures to promote the education of the personnel for that purpose.

(c) The international competitiveness of the Japanese textile industry has been declining, and Japan is now facing rapid increase in imports and decline in exports.

Japan is making every effort to avoid unnecessary competition with the neighbouring developing countries by accelerating the structural re-organization of the textile industry into a more information-intensive one, fully taking into account the merit of international division of labour.

2. The Japanese textile industry experienced long-term recession after the oil crisis. Production of textiles decreased sharply for two consecutive years after the peak year of 1973. Although production registered moderate growth in recent years, it still remains far below the 1973 level.

Furthermore Japan has recently experienced a sudden increase of imports and sharp decrease of exports resulting from the decline in its international competitiveness. Imports increased sharply in 1978 to a level 71.3 per cent above the previous year in quantity. They continued to show high growth in 1979, with an increase of 23.7 per cent in quantity over the previous year. On the other hand, exports declined substantially for two consecutive years, registering a decrease of 15 per cent in quantity in 1978 from the previous year and of 16.2 per cent in quantity in 1979 from the previous year.

COM.TEX/16 Page 15^

KOREA

Adjustment assistance measures

1. The textile industry in Korea has far greater weight in the economy in regard to manufacturing, export and employment than in the industrialized countries. It is likely that under present circumstances textile industry will remain a leading sector of the Korean economy for the time being. The following shows the importance of the textile industry in the three major fields :

(1) Manufacturing

In the year 19T0, total textile industry output stood at $7-L .L million, i.e. 23-9 per cent of total industrial production. In 1975 it increas i $3,575.2 million (3^.3 per cent of industrial production/ and fur-cner to $6,667.3 million (l9-l per cent of industrial production) in 1978.

(2) Export

Exports of textile products in 1970 of $390 million (total manufactured exports $1 billion) increased to $3,980 million in 1978 (total exports $12.7 billion).

(3) Employment

In the year 1978, the number employed in textile industry stood at 725 thousand which accounted for 23-9 per cent of total employment of 3,029 thousand.

2. Government measures to assist adjustment in textile industry.

(1) In the year 1967, the Government enacted a law (the Provisional Law for the Adjustment of Textile Facilities) concerning adjustments of the facilities of the textile industry to help achieve balanced development and international competitiveness by orderly adjustment and the replacement of outworn equipment in the textile industry.

(2) In 1979 a law (the Law for Promoting Modernization of the Textile Industry) was enacted to promote the modernization of the textile industry by way of (l) providing a special fund for the textile industry, (2) establishing an industrial complex for the purpose of specialization and the formation of interrelationships among textile industries, and (3) development of new technologies and training of manpower.

(3) In relation to structural adjustments, the emphasis will be put on improvements in quality of textile products rather than quantitative expansion.

(k) Ko special favour or consideration is being given to the textile industry with respect to tax and finance.

COM.TEX/16

MACAO

I. Reply to GATT/AIR/161I

1. Measures taken and policies adopted., relevant to Article l:k of the MFA.

(a) Autonomous adjustment processes

Industrial changes in the textiles and clothing sector in 1978/79:

Number of production units which ceased operation

Clothing Knitted goods Printed fabrics

1978 1 + 3 7 1979 U 5 1

Number of units in operation

Clothing Knitted goods Silk weaving

1978 17 1 1 1979 9 1 1

(b) Government adjustment-assistance measures

- limitation of permits to start new units in the light of number of existing industrial establishments-, value of the investment and quality of the products to be manufactured;

- special protection for basic textile industries (weaving and spinning) by granting facilities for the acquisition of land;

- financial credit to the most needy production units to improve the quality of their products;

COM.TEX/16

- An Industrial Development and Marketing Fund has been established, for the purpose of providing financial support for industrial development, diversification and restructuring programmes as veil as for promotional activities of public-sector enterprises or private-enterprise activities of recognized value.

II. Reply to GATT/AIR/1612

(a) Information concerning the textiles and clothing sector in 1978, by-branch of operation according to ISIC (Classification of Economic Activities) No. 321: Manufacture of textiles; and No. 322: Manufacture of wearing apparel, ready-to-wear, tailors and milliners.

Number of production uni ts

Personnel employed (average per day)

Administrative, technical and office s ta f f

Workers

Total work per year (•000,000 hours)

Salar ies and wages

('000,000 patacas)

Total

Admini s t r a t ive , technical and office s ta f f

Workers

Gross value of production (•000,000 patacas)

Gross added value ('000,000 patacas)

Investments ('000,000 patacas)

Changes in stocks ('000,000 patacas)

Texti les

95

5,71^

737

4,895

13.2

60.2

9 .2

35.5

320. 4

77. 4

12.3

24.3 •

Wearing apparel

324

24,103

2,001

21,735

63.5

165.1

24.0 134.4

866.2

230.3

20.9

17.9

Ready-to-wear

224

23,756

1,989

21,568

63.0

163.7

23.9

133.3

860.6

227.2

20.8

18.2

1 Tailors and

mil l iners

105

347

12

167

0.5

1.4

0 . 1

1.1

5.6

3 .1

0 . 1

0.3 1

(b) For replies to sections (b) and (c), please refer to Reply to GATT/AIR/l6ll.

»

COM.TEX/16

MALAYSIA

l.A. Recent developments in investment, productive capacity, and employment for textiles:

Year

1976

1977

1978

Investment

$570 million ringgit

$750

$8Ul

Employment

33,092

1*7,008

51, Ml

Production of Textiles and Clothing

Description

Yarn of man-made fibre (tonne)

Yarn of natural fibre (tonne)

Fabrics (km)

Clothing ('000 pes)

Knitted socks and stockings (*000 pes)

Year 1976

2**,2ll*

17,hhl

171*,608

1+3,8UU

9,233

1977

38,M*2

16.U89

172,93U

37,867

11,963

1978

1*2,733

18,750

207,61*6

U2.957

15,872

B. As the Malaysian textile industry has reached a relatively advanced stage, only selected sectors of the textile industry are still being promoted. This included the following:

(i) Integrated textile projects producing synthetic woven filament fabrics (not produced locally at present) catering for both the local and export markets.

COM.TEX/16

(ii) Projects proposing to manufacture high quality knitted fabrics and garments and catering basically to non-quota restricted rrarkets.

Presently, there is no direct Government echeme for reorganization, modernization or diversification of the industry.

With the present protective policy adopted by authorities in our traditional export markets, the Malaysian Government's policy is to encourage manufacturers to diversify into other non-quota items as well as to venture into non-quota restricted countries. In the case of new production for domestic consumption approval is given only to small-scale garment convertors located in the less-developed areas.

COM.TEX/16

PERU

1. Autonomous adjustment processes

The following trends have been identified in Peru's textile industry, particularly in the last six years :

(a) integration of production,

(b) modernization of machinery;,

(c) expansion of productive capacity:

(d) creation of textile enterprises working mainly for the export market.

These trends are most evident in the cotton and wool sectors.

1.1 Integration of production'

Many textile enterprises which used to engage in spinning yarn have turned to weaving and finishing.

1.2 Modernization of machinery.

Highly productive and automated machinery is being imported for the four main operations of preparation, spinning^ weaving and finishing.

1.3 Expansion of productive capacity:

The principal spinning-mills are attaining the minimum capacities required for economic operation in Latin America. Capacity is being expanded primarily in spinning and weaving.

'l.k Creation of textile enterprises working mainly for the export market:

Enterprises of this kind are to be found primarily in the cotton sector.

All of the above-mentioned trends are based fundamentally on export markets, since Peru!s domestic market has undergone a recession in recent years owing to rising prices and declining purchasing power (see Table 1).

TABLE 1 g?

TEXTILE EXPORTS BY AREAS IN 1976-78 H ON

('000 US&) °

AREA

Andean Group

LAFTA

European Economie Community

North America

Central American Common Market

Oceania-Africa

Asia

EFTA

CMEA

Rest of world

TOTAL

1976

US$

1 360

5 535

15 3*»9

5 5 0

119

1 571

1 336

91

30 091

%

k,k 17,9

»+9,7

17,9

0,U

5,1

*.3

0.3

100,0 • a n a

1977

us$

5 990

12 836

29 173

10 028

3 1

U35

568

2 U27

621

98

62 517

%

9,6

20,5

1*6,7

16,0

0,5

0,7

0,9

3,9

1,0

0,2

100,0

1978

us$

12 5lU

15 063

kk 031

27 212

3 633

156

1 U25

6 0l»8

191»

986

111 262

%

11,2

13,5

39,6

2U,5

3,3

0,1

1,3

5>

0,2

0,9

100,0

Source: Banco Continental, Oficina de Estudios Economicos, July 1979

COM.TEX/16 Page l6l

SWEDEN

Information on Adjustment Measures in the Textile and Clothing Sector

A. Autonomous adjustment process

As a result of changing market conditions, it has "been necessary to carry out adjustment measures in the Swedish textile and clothing industries, such as close-downs, amalgamations etc., which have led to substantial decreases in production, and also in the form of product development, design, marketing, finance, education, etc. The aim of specific government measures affecting the textile and clothing industries in Sweden have primarily served to alleviate and smooth the readjustment. It should, however, he recalled that the MFA recognizes the importance of avoiding damage to the minimum viable production of countries having small markets, an exceptionally high level of imports and a correspondingly low level of domestic production. In view of the very serious decline in Swedish textile and clothing production which has taken place during the last decade, it seems doubtful if adjustment in forms which would imply further decrease of the industries concerned would be consistent with the above-mentioned objective.

Production within the Swedish textile and clothing industry has progressively diminished during the 1970s. In 1975, there was a marked decrease in production within several branches of this industrial sector, which became even more pronounced in the following years. Between 1976 and 1977 production in the textile sector was reduced by 16 per cent and by 21 per cent in the clothing sector. During 1977-1979 production decreased by 8 per cent in the textile sector and by 15 per cent in the clothing sector. The number of employees within the Swedish textile and clothing industry went down from 11^,000 in 1950 and 67,500 in 1970 to around 38,000 in 1979- The adjustments which have taken place in production and employment must mainly be ascribed to changes in the international patterns of trade and comparative advantage.

The trend of diminished production and production capacity has led to a situation in which more and more attention is given to problems connected with securing the supply of essential textile and clothing products, in case Sweden would be cut off from its present sources of supply. In 1979, imports of clothing accounted for almost 80 per cent of the total supply.

COM.TEX/16


As to policies to encourage businesses which are less competitive internationally to move progressively into more viable lines of production or into other sectors of economy and provide increased access for textile products from developing countries, the following observations may be made.

One of the principal aims of government measures specifically directed towards the textile and clothing industries in Sweden is to encourage companies to concentrate their production in areas where they will have possibilities of being competitive. Such adjustment measures are not intended as means of preserving companies which cannot compete without government support in the form of trade policy measures or other measures.

During recent years government funds have been spent on an active labour market policy both in the form of general and sector directed measures. Measures with regard to the textile and clothing industries have progressively increased in importance. Their purpose has primarily been to assist in maintaining a minimum viable production and to slow down the rate of decrease in employment in this sector, so that adjustments can be made under socially acceptable conditions. Among the measures taken in this context mention could be made of grants for education of employees, threatened to be laid off, as well as temporary employment grants to companies employing persons above the age of fifty within the textile and clothing industry.

The Swedish government has recently established an emergency planning scheme for the textile and clothing industry for fiscal years 19T9/ÔO and 1981/82, in which certain production goals for different products areas have been set up.

Government measures to encourage business to: (i) improve viability of current lines of production, (ii) move progressively into more viable lines of production.

Government measures to assist integration, concentration, rationalization and readjustment in the textile and clothing industries have been in operation since 1970 and 1971. These governmental measures include export promotion, conversion support and educational and management training.

The principal aim of the conversion support measures is to stimulate expanding enterprises to utilize consultants to investigate methodically all possibilities of amalgamating (with or without partial or total purchasing) with other, economically weak and less competitive firms. Other amalgamations may take the form of co-operation agreements, establishment of joint marketing company etc. Investigations can also concern structural adjustments within the enterprises, primarily those of an organizational nature, including the need for specialization.

COM.TEX/16 Pae-e 163

The educational programme is designed to stimulate development in the principal spheres of company management and finance, production and marketing, personnel management and co-operation. The programme includes courses and conferences which are free of charge for participants.

The export promotion programme is concentrated on viable enterprises. Export projects which promote a better structure of the industry are given priority, e.g. joint export actions. Project support can only be considered for covering initial expenses. In this context grants can be paid to cover a part of costs for market analyses, marketing planning, and product adjustment. A certain assistance can also be given to collective activities, such as fashion displays.

For fiscal year 1979/80 SKr kk million have been set aside for programmes of this kind. The Swedish Government has decided to extend these measures until the end of fiscal year 1981/82.

In addition to the measures mentioned above, certain governmental credit support measures in the form of inter alia depreciation loans were introduced in 1972 to secure the supply of essential textiles in case Sweden would be cut off from its present sources of supply. The objective is to initiate investments which are necessary from the supply point of view. Companies which benefit from such credit support are, under agreements with the National Board of Economic Defence, obliged to maintain a certain production and production capacity. Support measures were later extended to a special programme of rationalization within the ready-made clothing industry. The aim of the programme is to encourage the introduction of new production techniques through support for investments increasing productivity, grants for the use of consultants when introducing new production techniques and increased support for research development. The support for investments increasing productivity takes the form of special depreciation loans. When applications for such loans are examined, special attention is given to the possibilities for long-term and stable access to markets for the product areas concerned. Loans to the equivalent of SKr 35-million have been granted until the end of fiscal year 1978/79-

During fiscal year 1977/78s as a result of the difficult situation within the textile and clothing industry, special credit guarantees were introduced for such textile and clothing companies which are expected to be competitive in the longer run. Such guarantees are given on condition that concrete plans for rationalization in the companies concerned have been established. The guarantees also aim at stimulating structural changes within or between companies. The actual scope available for such guarantees is SKr 72.5 million.

COM.TEX/16 Page l6U

In 1977, a special council for the textile and clothing industry was set up under the Ministry of Industry, with representatives from the government, employers and employees. The main task of the council is to follow developments within the textile and clothing industries, mainly long-term trends, and to analyze possible consequences for this sector of industry and the labour force involved.

In 1978, a special Board was established to co-ordinate government measures towards the textile and clothing industries. The National Board of Economic Defence, the National Industrial Board, the Labour Market Board, companies and employees are represented on this Board. As a consultative body, the Board advises the government on policy and programmes for restructuring and rationalizing the industries concerned.

In recent years the government has taken over four major and some smaller companies. These have been merged in one concern.

One of the measures to promote industrial adjustment in general was the establishment, in 1967, of the National Investment Bank with the aim to assist - on commercial terms - in the financing of in particular such investment projects that aim at rationalization, structural adjustment and development, with regard to research and development. A Board of Technical Development was set up to promote research and development through existing or new techniques, to support technical innovations and to raise the general level of technology through grants or concessionary loans. In addition it should be mentioned that government credit guarantees are available for small and medium-sized enterprises.

Government measures to encourage business to; (iii) move out of the textile sector into other sectors of industry

The main example of policies in Sweden, designed to assist business in abandoning non-profitable sectors and moving into other more profitable • sectors of the economy, is the government funds spent on an active labour and regional policy. The measures within this framework are available to assist industrial adjustment in general: no specific evaluation has yet been made to assess their effects in the textile and clothing industries. The decrease in employment within these industries, which earlier, to a large extent, took place within regions with a comparatively diversified industrial sector, is now occurring mainly within areas with a relatively one-sided industrial life. With the purpose of diminishing negative effects on employment in areas dominated by the textile and clothing industries, the government is offering enterprises in other sectors, willing to establish themselves in these areas, localization support and possibilities of using their investment fund.

COM.TEX/16


Production within the Swedish textile and clothing industry has decreased substantially during the 1970s. In 1978, Swedish production of textiles and clothing in terms of production indices had gone down to 71 and 51 respectively with 1973 as base year (lOO). During the same period, Swedish imports of textiles and clothing have increased rapidly, from SKr 3.9 billion in 1973 to SKr 8.6 billion in 1979. In 1979, imports of clothing accounted for almost 80 per cent of the total supply.

The quantitative share of developing countries in Swedish imports of clothing amounted to 33 per cent in 1979. In this context it may also be noted that GATT statistics concerning imports of textiles and clothing (cf.COM.TEX/W/53) give Sweden a position as the world's biggest importer per capita of such products from developing countries.

COM.TEX/16

SWITZERLAND

Information on Adjustment Measures in the ""textile and Clothing Industries-

A. Autonomous adjustments

1. General remarks

Over the past decade, there has been an appreciable decline in the level of employment in the textile and clothing industry. The recession of 1975/ 1976 and successive revaluations of the Swiss franc have brought about some structural adaptation of Swiss industry which was accompanied, in the period 1970 to 1979» by an overall reduction by 16 per cent in the level of employment. The corresponding reduction was by 30 per cent in the textile industry, and 3^ per cent in the clothing industry. Whereas these two sectors used to account for 12 to 13 per cent of total employment possibilities in Swiss industry, their share has now fallen to less than 10 per cent.

In ten years, i.e. from 1970 to 1979, Switzerland's total industrial output increased by only 2.5 per cent. Up until 1979. production by the textile industry was experiencing above-average growth (by 9 per cent) while production by the clothing industry was dropping back (- 2.5 per cent), so that the share of the textile and clothing industry in gross output (not including construction and energy) remained practically stationary (8.5 per cent in 1970).

2. Structural developments in the period 1977 to 1979 in the Swiss textile

and clothing industry

2.1 Textile industry

2.1.1 Undertakings and employment opportunities

In the period 1977 to 1979, all sectors of Switzerland's textile industry saw a reduction both in the number of undertakings and in the level of employment. Thirty-five undertakings ceased production and 3,386 wage-earners, i.e. 8.5 per cent of the total, lost their jobs. Considering that for Swiss industry as a whole, 3,6^0 jobs were lost in the period 1977 to 1979» more than 90 per cent of that reduction was clearly attributable to the textile industry alone. In 1979, that industry still comprised 521 undertakings employing 36,682 wage-earners, i.e. 5-7 per cent of total undertakings and 5.^ per cent of total employment in Swiss industry. Production means have also declined appreciably, the largest reduction being in respect of looms (by approximately -15 per cent in the period 1977 to 1979).

COM.TEX/16

Table 1

Undertakings and Wage-earners

Type of undertaking

Yarn and twisted yarn

Woven fabrics

Knitted fabrics

Embroidery

Finishing

Other

Total textile industry

Total industries

Number of undertakings

1977

151

238

21

79

55

12

556

9.3U1

1978

150

233

19

77

53

12

5UU

9,160

- -

1979

1U8

221

17

73

51

11

521

8,9^

Number of wage-earners

1977

1U.8U8

16,ike 710

2,383

5,129

850

Uo,o68

681,819

1978

13,982

15.UU0

629

2,365

U,993

853

38,262

683,692

1979

13,395

lU,771

590

2,298

U,785

8U3

36,682

678,179

Table 2

Production Capacity

Yarn bobbins

Twisted yarn bobbins

Weaving looms

Carpet-making machinery

Embroidery looms

1977

99M88 239,907

11,615

192

706

1978

1,000,533

2U9,577

10,898

201

691

1979

982,12U

22U,378

9,87U

198

685

COM.TEX/16

2.1.2 Regional importance of the textile industry

The Swiss textile industry is mainly concentrated in the eastern part of the country where it has nevertheless declined considerably in importance. Whereas in 1977 it still accounted for 26 per cent of all jobs in the cantons of St. Gallen, Glaris and Appenzell, in 1980 it accounts for only 20 per cent.

2.2. Clothing industry

2.2.1 Undertakings and jobs

In 1979 the clothing industry comprised 657 undertakings employing a total of 28,969 wage-earners, i.e. 7.3 per cent of undertakings and U.3 per cent of jobs for Switzerland's industry as a whole. The proportion of jobs has been declining in recent years, reaching U.8 per cent in 1977 and k.6 per cent in 1979.

Undertakings and jobs

1977

1978

1979

Undertakings

729

695

657

Jobs

32.U7

31,13»+

28,969

2.2.2 Regional importance of the clothing industry

The greatest concentration of the clothing industry is in Ticino canton, with 21.1 per cent of all undertakings in this sector and 22.5 per cent of the wage-earners. In that canton the clothing industry employs 25.8 per. cent of all wage-earners working in industry. In addition, an important part of the clothing industry is concentrated in eastern Switzerland where St. Gallen canton employs lU.3 per cent, Zurich 11.2 per cent, Aargau 10.2 per cent and Thurgau 9 per cent of persons working in this sector.

3. Foreign trade developments

Over the past decade the relative importance of textile and clothing products in Switzerland's foreign trade has declined:

- very appreciably in respect of exports where these products accounted for only 7.3 per cent in 1979 as against 9.5 per cent in 1970;

- from 10.2 to 9.6 per cent of imports over the same period.

COM.TEX/l6 Page l69

In the 1970's, the position of the textile industries in the domestic market weakened. They have therefore had to move tovard greater concentration and also toward specialization in the manufacture of high-quality products. Consequently, this industrial sector has had to become more export-oriented and at present about 60 per cent of Switzerland's textile output is sold abroad.

A similar trend can be discerned in the clothing sector. Taking into account nominal growth of 85 per cent for exports and 122 per cent for imports, the trade deficit in the clothing sector almost trebled from 1969 to 1979, reaching Sw F 1,9^2 million in the latter year.


Switzerland's economic policy is based in particular on the principle of the primacy of the private economy. Consequently - and in agreement with the economy concerned - it accepts that progressive adaptation of economic structures to changes in the context of the world economy takes place mainly in response to market forces and private initiative. Accordingly the objective of Swiss Government policy is not any particular structural model deemed a priori as being particularly adequate. Its efforts are designed, rather, to create and maintain an international trade system as open as possible, that is to say, one that offers outlets and competitive conditions that are equitable for production resulting from autonomous adjustments in the country's economy.

Accordingly, the structural adjustment process in the textile and clothing industry has been neither held back nor sustained by government intervention. Nevertheless, in recent years some exceptional and temporary measures have been taken with a view to alleviating the effects of successive revaluations of the Swiss franc to the extent that those effects were likely to threaten undertakings that were fully competitive:

- under a convention concluded in 1975 with the National Bank in order to alleviate the financing difficulties of export industries, Swiss banks, on certain conditions, discount bills of exchange at favourable rates. At the outset, this measure was primarily designed to help export financing for the watchmaking industry as well as the textile and footwear industries. Since the beginning of 1978, other branches of export industry can also benefit under tbe measure. This convention is due to expire on 31 October 1980. The advantage resulting from this discount rate is being reduced progressively and is currently 1 per cent on average:

COM.TEX/16

- in the context of measures adopted in October 1978 in order to alleviate economic difficulties resulting from the trend in exchange rates, a credit of approximately Sw F 3 million was established to support collective publicity abroad by the Swiss textile and clothing industry until the end of 1981. Part of this credit is in fact being used to publicize abroad the textile and fashion centre (Textil- und Mode-Center/TMC) in Zurich which is also at the disposal of importers and foreign producers.

C. Access to the Swiss market

Although as a result of substantial revaluation of the Swiss franc in relation to nearly all foreign currencies, the competitive position of imported products in the Swiss market has improved appreciably to the detriment of domestic output, Switzerland has not - apart from the measures mentioned above - taken any measures designed to hamper the accelerated adjustment process that has resulted, in the textile and clothing industries in particular. Nor has it had recourse to import restrictions in order to protect itself from increasingly keen competition from more and more exporting countries. As a result, the share of imports in domestic consumption of textiles and clothing has increased appreciably in recent years: whereas in real terms, consumption of textile products and clothing declined by 21 per cent between 1973 and 1979, the volume of imports for clothing articles alone increased by U3 per cent over the same period.

By carrying out essential adjustments - even at the cost of great sacrifice - the Swiss textile and clothing industry nevertheless considers that it can secure its future to the extent that, in the world market, its competitors progressively accept the competition that the Swiss industry has already accepted in its own domestic market.

COM.TEX/16

TURKEY

In Turkey, with the implementation of encouragement measures within the scope of the Fourth Five-Year Development Plan (1979-1983)» and annual programmes, assistance has been extended to the textile industry to expand and diversify production in this sector.

The Government's main incentive measures presently implemented within this sector are:

- facilities recognized for investors for payment of customs duties for machinery and equipment imported. Accordingly, payments can be made on an instalment basis over a period of five years;

- reduction in the overall income tax base of entrepreneurs operating in the textile sector, in proportion to their investments;

- assistance in obtaining medium-term loans from commercial banks under favourable conditions.

During the implementation period of the Development Plan, LT 2U.7 billion (at 1978 prices) will be invested in the textile sector to renovate, improve and enlarge the established capacity both in the private and public sectors. New capacities will be created particularly in those production lines where the added values are highest, such as the wearing apparel and carpet manufacturing sectors rather than in those sectors where the problem of under-utilization of capacity already exists. With these new capacities, production targets as set forth in the Development Plan and yearly programmes are expected to be reached.

Promotion of specialization in production and increasing the size of small enterprises to reach economically viable production units are among the policy objectives pursued within this sector.

It is recognized that modernization and reorganization of this sector is a necessity for increasing the productivity; and for making this sector operative under competitive conditions of the world market. To this aim, a project has been undertaken with the participation of World Bank, which is contributing credit facilities in foreign currency amounting to $80 million.

COM.TEX/16

This sum will be invested to meet the import requirements of reorganization and modernization works and to overcome the bottlenecks encountered in the sector due to foreign exchange shortages.

In addition to this, within the public sector where traditionally textile production has a very prominent place, it is planned to invest, for the same purpose, $300 million during a period of six years. In this sector seven new production units belonging to SUMERBANK, the largest textile producing enterprise in Turkey, are expected to enter into production of ready wear apparel in 1980.

Production within the textile industry during the years 1978 and 1979, and the programmed production for the year 1980, is indicated below:

Cotton yarn (tons )

Cotton fabrics (1,000 m. )

Wool yarn (tons)

Wool fabrics (1,000 m.)

Synthetic silk yarn (tons)

Synthetic silk fabric (1,000 m.)

Carpet (hand-woven and machine-made) (1,000 m 2)

0 Tufting, felt, kilim (1,000 m )

Knitted goods (tons )

Ready wear apparel (tons)

1978 (Realization) Quantity

335,000

1,363,000

1+3,000

5^,000

20,000

1,250

6,59*+

ik,500

15,^60

66,136

1979 (Estimates) Quantity

370,000

1,1+70,200

1*7,000

56,320

23,600

1,350

7,272

15,500

16,660

69,299

1980 * (Programmed) Quantity

1*05,000

1,51+2,000

1+8,000

57,000

21+, 790

1,1+58

7,61+6

16,362

18,539

73,300

COM.TEX/16

In the area of trade, in keeping with the structure of the domestic industry, textile exports have been encouraged as being the most important exportable manufactured goods in Turkey. This sector is viewed as having a crucial rôle in contributing to close the wide gap in the foreign trade balance of the country.

COM.TEX/16 Page 17U

UNITED STATES

Recent Developments in the United States Textile and Apparel Industries

GATT/AIR/I6II-3; 1612-1(a)

Conditions in most sectors of the textile and apparel industries improved during 1979. Performance during the first quarter of 1980 continued at a high level for the textile industry and at reasonable levels for most sectors of the apparel industry. Prospects are uncertain for the future.

The textile industry prime raw materials, cotton, wool and man-made fibre, advanced sharply in price in 1979. Cotton prices increased by 12 per cent from January to December, wool was up 13 per cent, rayon staple by 15 per cent and polyester staple by 25 per cent. These cost advances compare with a 7 per cent increase in the prices received by the industry as reflected in the producer price index. In spite of these disparities, the industry prospered in 1979- Its capacity during the fourth quarter of 1979 was 138.1 (1967~100) compared with 136.6 a year earlier. It operated at 89.5 per cent of the higher last quarter 1979 capacity compared with an 87.5 per cent utilization rate of the lower capacity a year earlier. Its sales were up on a value basis by about 11.5 per cent, enough to more than offset the inflation in its sales prices. Profits measured either on sales or equity were up. The industry entered 1980 in generally good condition with low and well managed inventories and well filled order books. Fibre prices, as mentioned earlier, are high and increasing. Textile manufacturers appear to be able, at the present time, to make forward sales in spite of these rising prices. Cotton dust problems plague the cotton sectors of the textile industry, but demand for cotton textiles continues buoyant and unfilled orders are high.

The apparel industry had some weak spots in 1979. The sectors producing knit garments did not fare as well as those producing woven goods. However, sweater activity and the market for knits turned up during the last quarter of 1Q79.

Both the textile and apparel industries achieved improved import-export balances in 1979. Exports by both industries expanded sharply in 1979 on a value basis while imports were down slightly for

COM.TEX/16

textiles and up only slightly for apparel. The textile industry's balance of trade improved from a negative balance of $139 million in 1978 to a positive balance of $815 million in 1979- The apparel industry's negative balance was dovn marginally from $U.28 billion in 1978 to $U.2U billion in 1979i however, the improvement in 1979 was the first in the post-var period The uncertainties of the economic situation coupled with extremely high interest rates have adversely impacted imports. Buyers faced with these problems, were unwillin? to commit a large percentage of their requirements to imports which have a long lead time, thus they committed a Larger percentage to domestic suppliers. These trends are continuing into 1980.

Expenditures for new plant and equipment

Capital expenditures for new plant and equipment for the textile industry in 1979 were $1.06 billion H 2 per cent higher than the $1.0U billion spent in 1978, Expenditures are projected at a rate of $930 million for the first quarter of 1980.

Textile Industry Year Capital Expenditures

1975 $ 660 million 1976 810 1977 920 1973 I..0U0 1979 1,060 1980 1st Qtr- Projected 1,000

2nd Qtr. Projected 930

Sales

Sales of textile mill products in 1978 were $37- billion 9 per cent higher than 1977- Sales in the first three quarters of 1979 were £30.6 billion, up 11.5 per cent from the same period in 1978.

Year Textiles Sales (Millions of Dollars)

1975 28,1*0 1976 33,957 1977 3 ^ 369 1978 37,1+18

Jan.-Sept 1978 27>09 1979 30,561

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1975 1976

1977 1976

1979 1st Qtr. 2nd Qtr. 3rd Qtr.

Textiles

1 2 2 3

2 3 3

2 k k 1

6 3 7

Textiles

k.2 8.0 8.6

11. U

9.0 12.8

13.1»

All

11 It» ik 15

15 18 16

Mffl.

6-0 2 0

8 1 3

Corporate profits

Profits in the textile industry in the third quarter of 1979 as a percentage of sales (3.7) and of equity (13-M vere up substantially from the first quarter and at rates vhich vere up 19 per cent and 18 per cent, respectively- from the 1978 averages.

Profits in all manufacturing industries vere 5-7 per cent of sales and 16.3 per cent of stockholders equity in the third quarter of 1979-

Sales Equity Year Textiles All Mfg.

(per cent)

H.6 5.U 5.3 5.U

5.6 6.1 5.7

Federal Reserve Board production index

The FEB production index for textile mill products vas 1U8.2 (1967S100) seasonally adjusted, in January 193o> up U.7 per cent from a year earlier.

The FEB production index for apparel products in January vas 126.9 down 2.6 per cent from January 1979-

Total textile shipments and inventories

Total shipments of textile products during February I960 amounted to $U3292 million., seasonally adjusted; up 19-5 per cent from a year earlier.

Total inventories of textile products at the end of February 1980 totalled $5,935 million, seasonally adjusted up 3.6 per cent from a year earlier.

Production of broadvoven fabrics

Cotton3 vool and man-made fibre broadvoven fabric production totalled 10.7 billion linear yards in 1978, slightly more than in 1977. Third quarter 1979 production vas up 2.9 per cent from a year earlier.

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Cotton broadwoven fabric production amounted to U.O million linear yards in 1978, down 8.5 per cent from a year earlier. Production during third quarter was up 2.6 per cent from same period in 1978.

Wool broadwoven fabric output totalled 117 million linear yards in 1978, or 15 per cent more than a year earlier. Third quarter 1979 was down 9*7 per cent from year earlier.

Men-made fibre broadwoven fabric production amounted to 6.6 million linear yards in 1973, up 6 per cent from a year earlier. Increase continued during 1979 with third quarter production up 3 3 per cent over same period in 1973.

Broadwoven Fabric Production Year Cotton Wool Man-Made Fibre Total

(Millions of Linear Yards)

1975 1976 1977 1978

1st Qtr. 2nd Qtr. 3rd Qtr.

^, 095 it, 718 ^ 356 3,989

ls033 1,018

936

73 97 102 117

33 31 25

5 285 6,087 6.22U 6] 623

ls7lit 1,632 1,579

9.U58 10,902 10,681 10;728

23780 2 731 2,5it0

Unfilled orders

Unfilled orders for cotton and man-made fibre gray goods at the weaving mill level totalled 2-9 billion linear yards at the end of November 1979, unchanged from a year earlier but up 11.6 per cent from October 1979.

- Man-made fibre fabric unfilled orders totalled 1.U29 million linear yards, up 2.3 per cent from October but down 19.8 per cent from a yer.r earlier.

- Cotton fabric unfilled orders totalled 1 U39 million linear yards, up 21.7 per cent from October 1979 and 32.1 per cent from a year earlier.

Inventories

Inventories of cotton, wool anci man-made fibre gray goods at the weaving mill level at the end of November 1979 totalled 876 million linear yards, down 2.5 per cent from a month earlier but unchanged from a year earlier.

- Cotton gray goods inventories at the end of November 1979 were down 28.7 per cent from a year ago. Man-made fibre inventories were up lU.9 per cent. Wool was unchanged.

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Employment

Total employment in the textile and apparel industries vas 2,208,000, seasonally adjusted, in March 1980, down 0.6 per cent from a year earlier.

Textile mill employment in February averaged 893,000, seasonally adjusted, 0.5 per cent less than a year earlier.

Apparel industry employment in February totalled 1,315»000 seasonally adjusted, 0.7 per cent below a year earlier.

Year

1975 1976 1977 1978 1979

March 1980

Textiles

868 919 910 900 891 893

Apparel

1.2U3 1,318 1,316 1,333 1,313 1,315

Total

2,137 2,26U 2,227 2,233 2,205 2,208

Unemployment

Average unemployment in the textile and apparel industries in the 3 months ending March 1980, compared with the same period a year earlier:

Textiles: 6.9 per cent vs.8.1* per cent

Apparel: 10.k per cent vs. 10.0 per cent

All manufacturing: 6.1 per cent vs. 5.7 per cent

Average hourly earnings

Textile industry hourly earnings for production workers averaged $^.90 in January — 8.U per cent more than a year earlier.

Apparel industry hourly earnings for production workers averaged $U.UU in January — 6.5 per cent above a year earlier.

Average hourly earnings for production workers in all manufacturing was $6.95 in January 1980 — 7.1 per cent more than a year earlier, and k2 and 57 per cent,, .respectively, above those in the textile and apparel industries.

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Year

1975 1976 1977 1978 1979

Jan. 1980

Texti les

$3.fcl 3.69 3.99 U.30 k.ee 4.90

Apparel

$3.17 3.U0 3.62 3.9U k.2k k.kk

All Manufacturing

$U..83 5.22 5.68 6.17 6.69 6.95

Average hours worked

Average weekly hours worked in the t e x t i l e and apparel indus t r ies in February 1980 compared with a year ea r l i e r were:

Text i les : 1*1.2 hours v s . 1*0.1 hours

Apparel: 35.8 hours vs . 3l*.5 hours

Consumer pr ice index

The CPI for apparel products in February 1980 was l 6 l . 8 (1967=100), up 5.0 per cent frcm a year e a r l i e r .

The CPI for a l l items in February was 236.k (1967=100), lU.2 per cent higher than a year e a r l i e r .

- The CPI for women's and g i r l s ' apparel was 151.9 in February, 2.3 per cent above a year e a r l i e r .

- The index for men's and boys' apparel was 162.7 in February, 3.8 per cent higher than.a year e a r l i e r .

Year

1975 1976 1977 1978 1979

Feb. I960

Apparel Products

lUO.6 1UU.9 150.6 15U.2 158.5 161.8

Women's & G i r l s '

(1967=100)

138.1 11*1.9 11*6. U 11*9.3 151.9 151.1

Men's & Boyi

11*2.2 11*7.2 15l*.0 157.3 160.8 162.7

Producers' pr ice index

The PPI for selected t e x t i l e products was 121.1 (1975=100) in March 1980, up 3.5 per cent fror March 1979.

COM.TEX/16 Page l80

The PPI for apparel products was 168.3 (1967»100) in March, up 6.5 per

cent from a year earlier.

The PPI for industrial commodities was 268.2 (1967=100) in March, up 19.2 per cent from a year earlier.

Year

1975 1976 1977 1978 1979 March 1980

Textiles (1975 • 100)

100.0 102.5 106.6 108.8 113.8

121.1

Apparel Products

(1967 • 100)'

133. U 139.9 147.3 152.1* 160.3

168.3

Industrial Commodities (1967 » 100)

171.5 182. k 195.1 209.3 236.3

268.2

Imports of textile and apparel products

Imports of cotton, wool and man-made fibre textile and apparel products during 1979 totalled U,6U8 million equivalent square yards, 19 per cent less than a year earlier.

- Cotton product imports were 1,891 million square yards, down 15 per cent.

- Man-made fibre product imports were 2,636 million square yards, down 22 per cent.

- Wool product imports were 122 million square yards, down 15 per cent.

Year Cotton Wool Man-made Total

3,828 4,987 4,977 5,7^0 4,648

Trade deficit (value)

The value of imports of cotton, wool and man-made fibre products during 1979 amounted to $6,307 million, virtually unchanged from a year earlier.

1975 1976 1977 1978 1979

1,281 1,923 1,639 23213 1,891

(million

78 109 1U3 Ikk 122

square yards)

2,U69 2,95^ 3,195 3,383 2,636

COM.TEX/16 Page l8l

1976 1977 1978 1212. (Millions of dollars)

Cotton 1,576 1,7**7 2,297 2,1*38 Wool 500 697 810 776 Man-made fibre 2,362 2,1*86 3.191* 3,093

Total 1*,1*38 U,930 6,302 6,307

The value of exports of cotton, wool and man-made fibre products amounted to $3,32U million during 1979 s up kk per cent from 1978.

1976 1977 1218 1279. (Millions of dollars)

Cotton 927 916 - 9 5 1.30U Wool 3** 1*0 31 39 Man-made fibre 1,097 1,17** 1,325 l,98l

Total 2,058 2,129 2,302 3,32U

The ynpor* trade deficit in cotton, wool and man-made fibre products during 1979 amounted to $2,983 million, down 25 per cent from a year earlier.

1976 1977 1978 1979 (Millions of dollars)

Cotton Wool Man-made fibre

Total

Trade de f i c i t (quantity)

61*9 1*66

1,265

2,390

831 658

1,312

2,801

1,352 779

1,869

1*,000

1,135 737

1,112

2,983

One measure of the impact of foreign trade on the domestic market is .the quantative data on fibre content compiled by the USDA. These 1979 data indicate a cotton, wool and man-made fibre content trade deficit of 290 million pounds. The deficit during 1978 was 806 million pounds.

The fibre content of importg for 1979 was 1,381 million pounds, lU.6 per cent below 1978:

1278 1212. Million Pounds


81+5 129 6U3

7»*6 110 525

1,617 1,381

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The fibre content of exports during 1979 increased to 1.091 million pounds, up 3 .5 per cent from a year earlier.

1978 1979 Million pounds


811 1,091

The trade deficit based on fibre content for 1979 was 290 million pounds compared with 806 million in 1978.

1973 1979 Million pounds

Cotton -U89 -268 Wool -lié - 9U Man-made fibre -201 + 72

-306 -290

United States Government plans for supplying export markets GATT/AIR/1612 - Kb) partial

The United States has embarked upon an ambitious long-term export expansion programme for textile and apparel products. This programme was inaugurated in early 1979 and is being implemented by, the Office of Textiles and Apparel in the Department of Commerce in co-operation with Commerce's Bureau of Export Development. A number of specific undertakings are already under way.

Global Market surveys

The department has contracted for a major study of the foreign sales potential for United States textiles and apparel. Textile and apparel markets in 22-25 major countries around the world are being surveyed to determine such things as where United States products are competitive and in demand., the size of the market, standards and trends, etc. Surveys have already been completed for the major markets in Europe and for some Asian countries. Completion of the additional studies will be staged through the first half of 1980.

Export seminars

A series of seminars were planned >uid developed to take place in 1980. These seminars are tailored to the needs of manufacturers of textile and apparel products and are being held in major cities throughout the country.

356 U78 13 16

kk2 597

COM.TEX/16

Seminars for apparel manufacturers have been held in Los Angeles and New York. Textile industry seminars have been held in Charlotte and New York. Additional seminars are currently in the planning stages for other textile and apparel countries.

Trade missions

The seminar programme will be followed by a series of industry organized-government approved trade missions to different parts of the world so that participating companies can put the knowledge they gained in the seminars to immediate use. The first of these trade missions, organized by the American Yarn Spinners Association, took place in Europe in November 1979.

Foreign and domestic trade shows

The programme sponsored or will sponsor participation by men's tailored firms in the Men's Fashion Week in Cologne, Germany and for participation by United States firms and associations in several other trade shows abroad in 1980, including the Men's Fashion Week in Cologne, IGEDO in Dusseldorf, Germany and Interstoff in Frankfurt, Germany.

Buyers will also be invited to visit textile and apparel shows, and other events, in major cities in the United States. The National Association of Sportswear Buyers (NAMSB) show, the American Men's and Boys' Tailored Clothing Market, the Dallas Women's and Childrens' Spring Market and the International Carpet and Rug Market have been or will be promoted overseas in 1980 under the auspices of the programme.

In addition to these promotional campaigns, a number of other initiatives are under way to improve the competitive environment for actual and potential exporters of textile products. For example, the Commerce Department is examining the viability of United States export trading companies for textile and apparel products to facilitate the entry of firms which have up to now considered themselves too small or unfamiliar with foreign trade to seriously consider exporting. If the study results in a positive conclusion, it would provide the incentive for the private sector to set up such companies. As an alternative, the Government could sponsor a model company for the private sector to emulate. A brief study on this idea was completed under contract last year and a more in depth study is contemplated.

COM.TEX/16 Page l8U

Trade barriers and issues

A concerted attack on foreign barriers to United States exports of textile and apparel products has been mounted, which has already achieved results in the removal of some important barriers to trade. The Office of Textiles and Apparel of the Commerce Department has recently completed a publication entitled Foreign Regulations Affecting United States Textile/ Apparel exports which details the known non-tariff barriers to United States textile and apparel exports in 138 countries. These regulations will be examined in light of the recently concluded Multilateral Trade Negotiations with a view to achieving the elimination of those in contravention of international commitments. The trade pact agreed in Geneva should also facilitate United States competitiveness in world markets by reducing tariffs on United States products and by establishing international "Codes of Conduct'1

designed to inhibit countries from restraining trade, or obtaining unfair competitive advantages, by non-tariff measures. Some of the key codes agreed to in the negotiations have been on subsidies, safeguards, standards, government procurement, customs valuation and import licensing procedures. Some of the codes took effect on 1 January 1980. To better focus efforts to eliminate textile export barriers, the Office of Textiles and Apparel has recently established a special Trade Facilitation Staff, designed exclusively to pursue non-tariff barriers and other trade problems which United States textile exporters are experiencing. The staff will support the operations of the Committee to Eliminate Textile Export Barriers announced by Under Secretary Hodges last year.

Another issue which the United States is examining is that of export financing. Some exporters have complained that United States export financing for textiles and apparel is not competitive. The Commerce Department has set up a task force to study the whole subject of export financing in response to suggestions and recommendations made by textile industry representatives. Among issues to be examined by the task force is an assessment of how financing for United States exports of textile and apparel products compares with that available for firms in other countries. Freight rate disparities and other issues will also be examined. These programmes outline some of the things the United States is doing, and is prepared to do, to enhance the position of the textile and apparel industries in international markets.

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United States Government and other measures for adjustments in the textile and apparel industries GATT/AIR/l6ll-2(a); I6l2-l(b) partial

Trade adjustment assistance for firms and workers was established by the Trade Act of 1971* to provide adjustment assistance for firms that have had adverse effects on their business because of increased imports and to help workers who become totally or partially unemployed as a result of increased imports. The objective of the Act is to facilitate the orderly transfer of resources to alternative uses and help in making an adjustment to new conditions of competition. A petition for certification of eligibility to apply for adjustment assistance may be filed by any firm, group of workers or their authorized representative.

The Secretary of Commerce certifies a firm is eligible for assistance and the Secretary of Labour certifies workers as eligible for benefits if they determine:

(1) that a significant number or proportion of workers in a particular firm or sub-division have become totally or partially separated, or are so threatened,

(2) that sales or production, or both, of such firm or sub-division have decreased absolutely,

(3) that increases in imports of articles like or directly with articles produced by such workers "contributed importantly" to such total or partial separation or threat thereof, and to such decline in sales or production.

If a firm is found eligible to apply for adjustment assistance it will receive technical or financial assistance or both from the Economic Development Administration.

Economic Development Administration technical assistance may be furnished by Federal agencies or through private individuals, firms and institutions. When furnished through private sources, not more than 75 per cent of the cost may be borne by the United States.

A loan guarantee shall not exceed 90 per cent of the loan balance. Guaranteed loans are limited to $3 million and shall have interest rates no higher than the maximum established for guaranteed loans made under section 7(a) of the Small Business Act.

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Direct loans shall not amount to more than $1 million for any one firm. The interest rate shall be determined by taking into consideration the cost of borrowing to the United States, plus an added amount to cover administrative cost and probable loss under the programme.

If a worker is found eligible to apply for adjustment assistance he may receive weekly payments which, when added to State Unemployment Insurance payments to which a worker is entitled, equal 70 per cent of the average weekly wage before his employment was disrupted by import competition.

The maximum allowance that a worker can receive can be no greater than the national average weekly wage in manufacturing. A worker may receive such allowances for up to fifty-two weeks, unless the worker exceeds sixty years of age, in which case he may receive an additional twenty-six weeks of allowances.

The programme also assists workers to regain satisfactory employment through the use of a full range of manpower services and, if needed, job search and relocation allowances.

SUMMARY OF TRADE ADJUSTMENT ASSISTANCE CASES

Firms

SIC-22 - Textiles SIC-23 - Apparel

Workers

SIC-22 - Textiles SIC-23 - Apparel

FOR THE TEXTILE

Petitions accepted

53 307

AND APPAREL INDUSTRY

Petitions certified eligible

1*9 2U9

Certified

No. of petitions

169 1,017

Est. No. workers

22,976 111,195

Petitions withdrawn

5 20

Petitions sending

5 38

Denied

No. of petitions

272 918

Est. No. workers

25,6U2 UU.723

Within the past year, the United States Government, in co-operation with the men's tailored clothing industry and the ladies' garment industry has entered into a programme to foster innovation and increase productivity in these important sectors of the overall textile and apparel industry. Discussions with other elements of the industry have been undertaken with a view to expanding adjustment assistance.

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Co-operative measures by the United States Government and various elements of the United States apparel industry

During the past two years, the Commerce Department's Economic Development Administration (EDA) has made a number of grants to industry associations and educational institutions to help them address some of the problems and challenges facing various segments of the apparel industry. Some of these grants have been quite small, focused on specific problems of various segments of the industry or on geographic regions. Others have been broader, addressing more generalized problems, such as new technology development and utilization in the industry.

The following section briefly summarizes the purpose and status of these EDA grants:

A. JTR, Inc.

Background: Joint Job Training and Research, Inc. (JTR) is a non-profit corporation established in mid-1978 by the Amalgamated Clothing and Textile Workers Union (ACTWU) and the Clothing Manufacturers Association (CMA) to improve quality and productivity, and to maintain a stable employment level (about 80,000 workers), in the men's and boys' tailored clothing industry.

JTR has received grants from two Federal agencies in support of its efforts. Since June of 1978, the United States Department of Labor has provided JTR with grants totalling $2.5 million to establish a National Training Programme under the Comprehensive Employment Training Act (CETA) (a separate training programme is administered by the Labor Department). The Economic Development Administration of the United States Department of Commerce has provided JTR with two grants totalling about .$1.U million for a Research and Development Programme intended to improve management practices, foster technological innovation, and expand markets.

Four specific projects (three funded through the ''Innovation Bank" and one direct) are currently underway and several more are being planned for 1980.

1. JTR "Innovation Bank"

JTR has established an 'innovation Bank" to which firms in the men's tailored clothing industry may apply for funding of research or innovatic projects of interest to the entire industry. If the project meets this criterion and is approved by JTR's Board, 75 per cent of the cost of the project up to $50,000 will be funded by JTR. The results of these projects are available to all firms in the men's and boys' tailored clothing industry.

COM.TEX/16 Page l88

Three innovation Dank projects, Improved Supervisory Training Techniques, Fusability Testing for Lining Materials, and Statistical Quality Control were selected by JTR's Technical Committee and approved by its Board.

2. Production control and planning

A major project initiated by JTR under its EDA grant in 1979 involves development of a production control and planning system specifically designed to meet the needs of firms in the men:s tailored clothing industry. Work on the initial phase of the contract has begun.

3. 1980 plans

In 1980; JTR plans to expand i t s programme of small grants to firms in . the industry to develop useful innovations in production and management techniques. In addition> i t plans to undertake a second major industry-vide" effort aimed at developing b e t t e r industry production and marketing data and, i f feas ib le j a market forecasting system for the men's and boys' t a i l o r ed clothing industry.

B. AJTR., Corp.

Background: Apparel Job Training and Research Corp. (AJTR) is a nonprofit organization established in 1978 by the International Ladies Garment Workers Union (ILGWU) and the Federal of Apparel Manufacturers Association (FAM) to improve quality and productivity, and to maintain a stable employment level in the women's and children's clothing industry.

AJTRC has received grants from two Federal agencies in support of its efforts: él.8 million from the Department of Labor and $150,000 from thu Department of Commerce.

C. Georgia Tech Research Institute

Background: The Georgia Tech Research Institute has for many years been one of the primary university centres serving the textile and apparel industries in the United States. In September of 1978, the Commerce Department's Economic Development Administration awarded a grant of &600 000 to the Institute, to assess new technology needs and opportunities for the apparel industry consistent with the industry's marketing and business strategy requirements5 today and in the near-term future. Half the grant money is being used for three major projects. The rescinder of the crrjit will be used to pursuvs pronisin^ opportunities identified as a result of this initial work. The three projects include.

COM.TEX/16

1. A marketing strategy analysis which will attempt to identify viable marketing and business strategies for domestic markets with high (greater than 25 per cent), moderate (10-25 per cent), and low (less than 10 per cent) import penetration,

2. An assessment of the technical and economic feasibility of several new technologies currently of interest to the apparel industry to improve or automate specific operations in the manufacturing process, and

3. An analysis of the interface between the textile and apparel industries, to identify specific improvements in institutional relationships or operating practices.

Current status: All three projects have been completed and draft reports have been received. Final reports are scheduled for completion in May 1980.

D. Philadelphia College of Textiles and Science Grant

Background : The Philadelphia College of Textiles and Science is the oldest private institution serving the academic needs of the textile and apparel industries and currently has the largest enrolment of textile and apparel related students. For many years, the PCT&S has provided a direct textile and apparel research service.

In September of 1978, EDA awarded a grant of $300,000 to the Philadelphia College of Textiles and Science to:

1. Assess current utilization levels of the best available technology by men's apparel manufacturers, and identify the new technologies needed by this segment of the industry.

2. Develop a strategic perspective on the industry by identifying successful business strategies through case studies of successful, marginal and failing firms in the men's tailored clothing industry.

Current status

1. Assessment of technology utilization and needs. Apparel manufacturers were interviewed and over sixty specific pieces of equipment or processes were described that would benefit from new technology. Three were selected for research and development: (l) use of a chemical edge sealant to prevent fraying, (2) develop an improved method of sleeve setting in men's coats and (3) develop an improved work station design. All three projects are scheduled for completion in mid 1980.

2. Case studies of successful, marginal and failed men's apparel firms: this project is scheduled for completion in mid 1980.

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E. National Knitted Outerwear Association

Background: In September 1979, the National Knitted Outerwear Association (NKOA) received a grant of $U5,000 from EDA to undertake a study of the post-knitting machinery and equipment needs of the knitted outerwear industry.

Historically, finished knitted outerwear garments (primarily sweaters) were produced on knitting machines. Today, a substantial part of the finished product is made of knitted fabric which is then cut and sewn into finished garments. Much of the equipment used in the cutting and sewing of poBt-knitting operations was designed for woven fabric and frequently is not entirely appropriate for knitted fabrics. The NKAO study, which is scheduled for completion in mid 1980, will identify the best currently available equipment and machinery for each operation, taking into consideration plant size and sophistication. It will also identify operations where currently -available equipment is inadequate for knitted cut and sew operations.

F. New England Apparel Manufacturers Association

Background; The New England Apparel Manufacturers Association (NEAMA) is a regional association of apparel contractors located in the vicinity of Pall River, Massachusetts and Providence, Rhode Island. In mid 1978, EDA provided a $10,000 grant to NEAMA to retain a consultant to examine the common needs and problems of its members. The consultant's report identifies several opportunities for the firms and recommends a programme to address these needs.

A second EDA grant of $75,000 was awarded to NEAMA in July 1979 to: (l) fund a position for an industrial engineer to work with all NEAMA members to improve their efficiency, and (2) retain an outside consultant to assist the Association in developing a plant for revitalization of the local industry.

Assessment of the effects of adjustment measures

The precise effects in quantitative terms of these various adjustment measures have not been calculated. In general qualitative terms, however, the measures are judged to be helping firms in the apparel industry to better assess their current competitive status and future potential in terms of both the United States domestic market and various export markets.

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Increased Access to United States Markets GATT/AIB/1611-2 ( c ) ; l6l2-JTcT~

General

The United States Government has operated on two parallel fronts in providing increased access to its textile and apparel markets for imports from developing countries. On the one hand, the United States has allowed imports of apparel to increase substantially within the network of quotas negotiated with, or, in rare instances, imposed on exporting countries. On the other hand, the United States has progressively reduced the number of quotas in effect in the textiles area to the point where actual restrictions on imports are virtually non-existent. The measures taken in both areas have been consistent with the provisions of Article 1(2) as well as Article I(U).

Textile access

Prior to the beginning of the MFA, the United States had comprehensive bilateral agreements with thirty-one countries. All of these agreements set quotas on non-apparel textile products. In 1980, only ten of the current twenty-one United States bilaterals set ceilings on the non-apparel group of textile product categories. The United States has no unilateral import restraints on non-apparel products.

Nine agreements set no ceiling for non-apparel products but provide consultation mechanisms in case of market problems. The United States has invoked only one consultation mechanism for non-apparel in the past two years. In the case of two agreements non-apparel products are excluded from the MFA bilaterals.

Those agreements with non-apparel group ceilings set ceilings substantially above levels of trade. Total non-apparel group ceilings in the 1979 Agreement years were filled by only U6 per cent. In only one agreement was the non-apparel group ceiling substantially filled and in only two others did trade fill more than 70 per cent of the ceiling.

Apparel access

The United States actions under the MFA have clearly permitted the exporting nations to benefit from market growth of cotton, wool and man-made fibre apparel items. Data on the domestic production and imports of the outerwear apparel items since the first year of the MFA clearly point up this increased access. These data follow:

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United States Production, Imports and Import/Production Ratios of Outerwear Apparel Items

(Million dozens)

Year Production Imports Ratio *

197U 1975 1976 1977 1978 1979

Increase 197^-1978

Compounded annual growth ra te 197^-1978

197»+-1979

228.0 231.3 251.2 261.5 263.3

15- 5*

3.1%

-

66.5 7U.6 93.3 91.8 110.2 102.7

65.7*

13.W

9.1*

29.2 32.3 37.1 35.1 Ul.9

Note: Apparel items not included are gloves, handkerchiefs» body support garments, underwear, robes and nightvear. These apparel items, with the exception of man-made fibre hosiery, all had increased import to production ratios during the 197^-1978 period.

The above trends are substantiated by trade in the major specific cotton;, wool and man-made fibre apparel items.

Men a and boys' shirts; 26.5* of 1978 outerwear apparel production

Year

1971* 1978 % Increase

Million dozens

Production

59.6 69.8 17.1

Imports

13.U 25.3 88.8

Ratio

22.5 36.2

Compounded annual growth rates :

Production k.0% Imports 17.2*

COM.TEX/16

Women's, girls' and infants' blouses; 20.2 per cent of 1978 outerwear apparel production

Year

1971* 1978 % Increase

Million dozens

Production

36.9 53.3 kk.k

Imports

22.7 36.5 60.8

Ratio

61.5 68.5


Production 9.6* Imports 12.6%

Men's and boys' trousers, etc.; 17.3 per cent of 1978 outerwear apparel production

Year

197U 1978 % Increase

Million dozens

Production

UU.3 U5.6 2.9

Imports

3.3 8.1»

15U.5

Ratio

18. k

Compounded annual growth rates:

Production 0.J% Imports 26.3%

Women's, girls' and infants' trousers; 10.8 per cent of 1978 outerwear apparel production

Million dozens

Year Production

1971* 29.2 1978 28.5 % Increase -2.U


Production Imports

Negati 12.6*

Imports

9.1 lk.6 60.k

ve

Ratio

31.2 51.2

COM.TEX/16 Page 191*

The above specific items accounted for three quarters of the total outerwear apparel items produced in the United States during 1978. The United States provided increased access to its markets for the non-outerwear apparel as is indicated below:

Item Import/Production Ratio. (%)

12J1 16.1 109.8 30.3 12.9 13.5

1?78

36.3 1U8.7 53.0 55.2 3 .9

Cotton gloves Man-made fibre gloves Brassieres Cotton dressing gowns and robes Cotton nightwear

The United States restraints have been on a quantity basis rather than on a value basis. This has resulted in the exporting countries shifting from lower to higher valued apparel items. The value of apparel imports increased from $2.1 billion in 197^ to $5.0 billion in 1979» an increase of 139*3 per cent, a compounded annual growth rate of 19.1 per cent, more than double the quantity growth rate of apparel imports. Only part of this increase is attributable to inflation. The apparel wholesale prices advanced only 5-5 per cent annually on a compounded basis during the period; thus the major portion of the value growth was due to upgrading of products, etc.

COM.TEX/16

Addendum

HUNGARY

Information for the GATT Textiles Committee

In compliance with what was stated in our detailed information of last year, reconstruction in Hungary - now at its tenth year - with some Ft l6-17 thousand million investment, has been aimed at the modernization of the means of production, at establishing up-to-date equipment, and to a lesser extent, at creating new capacities in the textile and clothing industry. In the mid-seventies, however, the labour force decrease speeded up to an unexpected degree, amounting to a yearly ratio of 1-1.5 per cent; in one of the biggest centres of the textile industry, Budapest, the labour force decrease was well over 5~6 per cent a year. As a result of this, new capacities in many instances served to make up the lacking manpower.

In reconstruction, with the original objectives of increasing the volume of production, there has come a change as from 1978 that attaches special importance to the improvement of efficiency and change of production pattern. The state of production value and that of major products, as well as dynamics in the annual development of the volume of production in certain sub-branches is figuring in Tables Nos. 1, 2 and 3-

The amounts allocated for investments had essentially been exhausted up to the end of 1978 and in the first half of 1979- Due to unfavourable tendencies on the world market, profits of producing enterprises have decreased, thus for further development these enterprises dispose of lesser funds of their own.

Internal and external factors alike induced a shift towards a more rational production system and products pattern, thus, as compared to 1975» the output of the cotton industry is expected to have been decreased by more than 10 per cent by 198O.

As to the global production of the textile industry, a decrease, or stagnation, respectively, is reckoned with, if the output of 1980 is compared with that of 1979. Out of this, the cotton industry has a 2.5-3 per cent share in the decrease, while the haberdashery and hosiery industry has a 3~5 per cent increase; in the ready-to-wear industry, a 1-2 per cent increase is to be expected.

In the linen and hemp industry, the processing of natural fibres is decreasing, due to insufficient crops in agriculture, and partly because the labour force is scarce in the field of producing natural fibres. These traditional branches of plant cultivation are losing their importance more and more, and at an increasing pace there is a switch-over to the processing of synthetic fibres - Polypropilene - thus making production more effective, through the introduction of additional and new profiles.

See page 2.

COM.TEX/16

The search for new profiles, utilization of new primary materials is specific to other sub-branches as well, e.g. for the production of woollen cloth, basic materials containing woollen and viscose fibres are used; in the silk and hosiery industry the utilization of cotton yarn is increasing; there has been a change-over to producing more profitable ladies' blouses and dresses from shirt production.

However much the results are considerable in the change of production structure, they are of no sufficient degree. Fast, dynamic changes are hampered to a great extent by the lack of liquid assets on the home market.

Reconstruction in the textile industry cannot be taken as completed, for different reasons, such as, the allotted amounts due to price increase concerning equipment have proved to be insufficient. During the past five years, the production of the clothing industry has increased by 1 per cent yearly..

The share of textile and clothing industry in national economy

In Hungary, out of the global production value of the industry, the textile and clothing industry have a 9 per cent share and l6.8 per cent of those employed in the industrial sphere work in the textile and clothing industry. About 50 per cent of finished goods serves internal consumption, satisfying some 80 per cent of the demand in clothing. The quality of home clothing provision has gradually improved, new, up-to-date products have been put on the market, choice has enlarged, however, foreign suppliers still have a good chance to sell their products on the Hungarian market, as economies of scale do not make possible the home production of many items. The other half of finished goods is exported, in almost equal proportion to rouble and non-rouble areas.

Exports to rouble areas are realized in the frame of long-term interstate agreements which ensure security of production on the one hand and relatively high economies of scale, on the other. The profitability of our sales does not exceed the average. As to our exports to convertible currency areas, the major market for us is Western Europe, with special regard to the EEC; also the overseas developed market economy countries have a considerable share. Lately, the proportion of developing countries has decreased to about 20 per cent in our exports to convertible currency areas.

Export markets for textile and clothing industry

Markets of the EEC with a 50 per cent share of our exports to convertible currency areas are looked upon as of decisive importance also in the future. We have got traditional business relations, which, in most cases, imply more than mere business transactions. Our customers, agents, joint companies research and convey the demands of markets to be expected, changes in fashion, as well as they point out the required trends in the development of production. Our expansive relations in the field of co-operation have got a beneficial affect on export structure, the state of quality and turnover also in the long run.

COM.TEX/16

Commission work activity implies a great many technical advantages, however, it may block capacities, as it makes production depend on the customers' demands, thus bringing about insecurity. A more dynamic increase in this respect is not deemed advisable.

As for our exports to the United States markets, the application of the most-favoured-nation treatment has considerably improved our tariff positions and retail prices attainable on the markets, however, due to other factors -e.g. the increase of shipping expenses - the expected rise of turnover has failed to ensue.

Essential criterion of development: rentability of production

In the fixing of prices attractiveness, fashion hits, touches of novelty and "human capital" accumulated in technology are a decisive factor rather than traditional index-numbers, that is why production and sales costs should be co-ordinated so that they actually be recovered.

Our objectives in developing production are that the goods we supply contain higher level of values of intellectual and servicing character. In various fields of our textile and clothing industry, possibilities of co-operation are being searched for. There is a basic necessity to develop preparing capacities for cotton and woollen fibres, as well as finishing capacities, and special attention is attached to buying know-how and production pattern.

There is no central planning for the development of the textile industry. In factories working individually, there is but one criterion of the development of production and export: rentability. It is the Ministry of Light Industry to guide and control the individual sub-branches, as to the various scales of developing or reducing production. At present rentability and profitability are decisive factors, thus less efficient sub-branches and enterprises are granted no credits or any other means of support; this brings about a regression of production.

Trends to be expected in the development of production structure in the textile industry

Cotton industry: development is aimed at producing coloured woven heddle fabrics, corduroy, cotton, burberry, twill, duffel, different sorts of poplin, with a view to producing basic materials for leisure garments.

travail à façon

COM.TEX/16

In the silk industry progress is to be expected in producing up-to-date lining materials; the production of coloured woven bulk yarn will be increased, partly for home consumption and partly for export markets.

Goods made of pure wool being most in demand, in the wool industry development is tending towards the processing of natural basic materials in the case of worsted fabrics and carded materials alike.

As to linen and hemp industry, household textiles, technical fabrics,-polyolein fibres, strings, ropes, sacks are planned to be produced of synthetics for the most part, in addition to linen damask, jacquard fabrics and fashion textiles.

It is advisable for the haberdashery industry to make progress in producing accessories for ready-to-wear industry and also in producing curtains and sanitary products.

Knitting industry: as far as can be foreseen, fashion varies towards preferring flat-, circular- or chain-knitted fabrics. However, a shift to utilizing non-synthetic basic materials is to be expected also in this field.

Summary: It is the "microstructure" of the individual enterprises where the development of Hungarian textile industry is going on; it also affects the flexibility of enterprises in adapting their production to the changing demands of market, through increasing efficiency.

Production value /in million Ft./

/Branches/

Table No. 1

Special branch

Cotton industry

Linen and hemp industry

Wool industry

Silk industry

Haberdashery industry

Knitwear industry

Textile industry - global

Textile clothing industry

1975.

actual

15.312

3.786

8.099

2.446

2 .621

6.196

38.460

13.390

1976.

actual

15 .131

3.870

8.800

2.514

2.749

6 .741

39.805

13 .813

1977.

actual

15.778

4 .110

9.345

2.582

2.942

7.176

41 .933

14.315

1978 .

actual

16.129

4 .379

9.412

2 .491

3.032

7.424

42.867

15.263

1979 .

actual

1 6 . 3 9 1

4 .422

9 . 5 5 1

2 .378

3 .153

7 .805

43 .700

15 .975

1980.

expectable

15 .110

4 .340

8 .030

2 .340

3 .160

7 .970

40.950

15 .170

Index % 1980. 1975.

98 ,7

114,6

9 9 , 1

95 ,7

120,6

128,6

106 ,5

113 ,3

expectable . actual

P O

m s

vo

Production of major products

/Branches/

Table No. 2 P o

"S g g 3

I-1

M.e. 1975.

actual

1976.

actual

1977.

actual

1978 .

actual

1979 1980,

actual actual

Index% 1980. 1975 .

expectable actual

Imitation leather including tex t i les mi l l .m2 28,4 28,2 29,2 31 ,4 30 ,7 32 ,2

cotton fibres thousand t o n s , , , -_ _ , . , -e z e r t o 67,6 65 ,2 66 ,3

69,6 67,5 67,5

woollen fibres e z e r t o 22 ,0 23,4 2 5 , 1 25,7 25,5 25,8

finished cotton fabrics mi l l .m2 352 ,1 352,9 366,2 3 6 5 , 3 348,8 336 ,0

finished linen and hemn fabrics mill. m2 24,4 « 23,0 20,6 20,2 . 19,1 19,0

finished woollen fabrics mil l .m2 39 ,0 41 ,3 43 ,0 4 2 , 8 41 ,0 41 ,0

finished si lk fabrics mil lTm2 54,7 5 7 , 1 57 ,0 62 ,3 57 ,3 55 ,0

knitwear /under and overcarment/ 14 ,5 15 ,5

thnnsnnrt tons 15 ,6 1 5 , 3 1 5 , 0 16 ,2

113,4

99 ,9

117 ,3

95,4

77 ,9

1 0 5 , 1

100 ,5

111 ,7

clothing industry branch at current price

Ft 13.035 12.840 13 .560 14 .510 15 .210 15 .220

/Volume index %/ Table No. 3

/Branches/

Special branches

Cotton industry

Linen and hemp industry

Wool industry

Silk industry

Hahprrinshpry inriuntry

actual actual actual actual expectable expectable 1576. 1977. 1978. 1979 . 1980. I 9 6 0 . 1575. 1976. 1977. 1978 . 1979. 1975 .

acluaJ ajttuûJ actual ociuaJ actual actual

S8,9 102 ,1 9 6 , 1 94 ,6 97 ,6

101,6 102,4 101,2 98 ,9 101 ,8

110,7 104,6 106,7 108 ,8 100 ,8

103,2 103 ,0 96 ,5 92 ,6 100 ,5

104,6 106,2 103 ,0 103 ,2 103 ,0

89 ,6

106 ,0

135 ,5

95 ,5

121,6

K n i t . w o n y i n H n a i r y

TeYtile industry /g lobal /

Text.ilP clothing industry

107,6 104,6 100,9 101 ,6 105 ,0

103,7 103,4 1 0 0 , 1 99 ,6 100,6

i 0 l , 2 100 ,2 101,4 1 0 1 , 0 101 ,8

1 2 1 , 1

107 ,5

105 ,7

http://Text.il

Facts and Figures of Textiles and Clothing Industry, 1978

Indus-try Group

Textiles A Text i le Manufacturer*

Wearing Apparel

TOTAL

No of Establishment

345

425

Ho of Workers

9,808

28,994

38,802

Output

(St Million)

352.9

633.6

986.5

Btoployeee* Remuneration

(S$ Million)

54.7

118.1

172.8

•U o P o en s a> • ro M O X ro -^

H 0\

M

I O UJ

Souroei Report on the Census of Industrial Produotion 1978

Note 1 Only establishments engaging 10 or more workers are inoluded

COM.TEX/16

ANNEX I

Texts of Airgrams GATT/AIR/l6ll and GATT/AIR/1612

GATT/AIR/1611 13 MARCH 1980

SUBJECT: INFORMATION ON ADJUSTMENT MEASURES IN THE TEXTILES AND CLOTHING SECTOR

1. THE TEXTILES COMMITTEE AGREED AT ITS MEETING IN DECEMBER 1979 THAT A WORKING GROUP OF THE TEXTILES COMMITTEE BE REQUESTED TO CARRY OUT A DETAILED EXAMINATION OF ADJUSTMENT MEASURES WITH REFERENCE TO THE OBJECTIVES SET OUT IN PARAGRAPH » OF ARTICLE 1 OF THE ARRANGEMENT. THE WORKING GROUP MET ON 12 FEBRUARY AND SET UP A TECHNICAL SUB-GROUP WHICH WOULD BE ENTRUSTED, INTER ALIA, WITH THE TASK OF SECURING INFORMATION OF RELEVANCE TO ThiS WORK.

2. AT ITS AGREED THAT

MEETING ON 12 MARCH 1980, THE TECHNICAL SUB-GROUP PARTICIPATING COUNTRIES CONCERNED SHOULD BE INVITED

TO PROVIDE DETAILED AND UP-TO-DATE INFORMATION ON MEASURES TAKEN, OR POLICIES ADOPTED, RELEVANT TO ARTICLE 1:4, AS FOLLOWS:

(A) AUTONOMOUS ADJUSTMENT PROCESSES

WHAT AUTONOMOUS ADJUSTMENT PROCESSES HAVE BEEN IDENTIFIED IN THE TEXTILE INDUSTRY? TO WHAT EXTENT CAM THEY BE ATTRIBUTED TO CHANGES IN THE INTERNATIONAL PATTERNS OF TRADE IN TEXTILES AND COMPARATIVE ADVANTAGE?

(B) GOVERNMENT MEASURES

LIST ADJUSTMENT MEASURES AND POLICIES ADOPTED BY THE GOVERNMENTS TO ENCOURAGE BUSINESS TO:

Ci) IMPROVE VIABILITY OF CURRENT LINES OF PRODUCTION;

Cii) MOVE PROGRESSIVELY INTO MORE VIABLE LINES OF PRODUCTION;

(iii) MOVE OUT OF THE TEXTILE SECTOR INTO OTHER SECTORS OF INDUSTRY.

INFORMATION RELEVANT TO THESE MEASURES MIGHT INCLUDE A TECHNICAL DESCRIPTION OF THE MEASURES, THEIR PURPOSE AND AN ASSESSMENT OF THEIR EFFECTS. INFORMATION ON MEASURES TO DEAL WITH PROBLEMS ARISING FROM CLOSURES, UNEMPLOYMENT, ETC. WOULD ALSO BE RELEVANT.

COM.TEX/16 Page 20U

(C) INCREASING ACCESS TO THE MARKET

INFORMATION IN REGARD TO INCREASED ACCESS TO THE MARKET (E.G. LIBERALIZATION OF QUANTITATIVE OR OTHER RESTRICTIONS), BY YEAR, MADE POSSIBLE BY THE IMPACT OF THE ABOVE-MENTIONED AUTONOMOUS ADJUSTMENT PROCESSES AS WELL AS OFFICIAL ADJUSTMENT MEASURES AND POLICIES.

3. PARTICIPATING COUNTRIES MAY ALSO WISH TO MAKE A GENERAL STATEMENT ABOUT THEIR NATIONAL TEXTILE INDUSTRIES, INCLUDING THE PURSUIT OF APPROPRIATE ECONOMIC AND SOCIAL POLICIES, IN A MANNER CONSISTENT WITH NATIONAL LAWS AND SYSTEMS, REQUIRED BY CHANGES IN THE PATTERN OF TRADE IN TEXTILES AND IN THE COMPARATIVE ADVANTAGE OF PARTICIPATING COUNTRIES.

4. IN ORDER TO PERMIT THE SUB-GROUP TO CARRY OUT THE WORK -ASSIGNED TO IT, THE INFORMATION REQUIRED ABOVE SHOULD BE MADE AVAILABLE TO THE SECRETARIAT AT THE EARLIEST POSSIBLE DATE BUT NOT LATER THAN 15 MAY 1980.

0. LONG

COM.TEX/16

GATT/AIR/1612 13 MARCH 1980

INFORMATION ON PRODUCTION, TRADE THE TEXTILES AND CLOTHING SECTOR

SUBJECT: INFORMATION ON PRODUCTION^ TRADE AND ADJUSTMENTS IN

1. WITH A VIEW TO ENABLING THE TEXTILES COMMITTEE TO DISCHARGE ITS FUNCTIONS UNDER ARTICLE 10:2 OF THE ARRANGEMENT REGARDING INTERNATIONAL TRADE IN TEXTILES, ALL PARTICIPATING COUNTRIES THEREIN ARE INVITED TO FURNISH DETAILED AND UP-TO-DATE INFORMATION ON THE CURRENT STATE OF PRODUCTION AND TRADE IN TEXTILE PRODUCTS INCLUDING ANY MEASURES TO FACILITATE ADJUSTMENT AS FOLLOWS:

CA) RECENT DEVELOPMENTS IN INVESTMENT, PRODUCTIVE CAPACITY, EMPLOYMENT ETC. FOR TEXTILES AND CLOTHING.

<B) GOVERNMENT AND OTHER PLANS FOR THE EXPANSION OF THE TEXTILE AND CLOTHING INDUSTRY, INCLUDING AIDS FOR THE REALIZATION OF SUCH PLANS. ANY GOVERNMENT SCHEMES ADOPTED OR CONTEMPLATED FOR RE-ORGANIZATION, MODERNIZATION OR DIVERSIFICATION OF THE INDUSTRY AND AN ASSESSMENT OF THEIR EFFECT. EXTENT TO WHICH GOVERNMENTS PLAN TO DEVELOP PARTICULAR SECTORS OF THE TEXTILE AND CLOTHING INDUSTRIES:

- FOR SUPPLY TO TRADITIONAL EXPORT MARKETS

- FOR SUPPLY TO NEW EXPORT MARKETS

- FOR DOMESTIC CONSUMPTION.

C O ANY OTHER MEASURES OR POLICIES THAT WOULD BE RELEVANT TO THE WORK OF THE COMMITTEE INCLUDING MEASURES AND POLICIES HAVING A BEARING ON THE EXPANSION AND LIBERALIZATION OF TRADE IN TEXTILE PRODUCTS.

2. PARTICIPATING COUNTRIES MAY ALSO WISH TO MAKE A GENERAL STATEMENT ABOUT THEIR NATIONAL TEXTILE INDUSTRIES IN THE CONTEXT OF INTERNATIONAL TRADE IN TEXTILES, INCLUDING SUCH INFORMATION ON PRICE, WAGES AND OTHER INDICES AS THEY DEEM RELEVANT.

3. SUCH INFORMATION SHOULD BE MADE AVAILABLE TO THE SECRETARIAT AT THE EARLIEST POSSIBLE DATE AND, IN ANY EVENT, NOT LATER THAN 15 MAY 1980.

0. LONG

.

ANNEX II hd o (B O

(D • EXCHANGE RATES. NATIONAL CURRENCIES TO US DOLLARS. 197^-1979 ro W

O X

197c

A u s t r i a B r a z i l Canada Colombia EEC

Belgium

Denmark

France

(formany

I r e l a n d

I t a l y

N e t h e r l a n d s

Uni ted Kingdom

Egypt F i n l a n d Hong Kong I n d i a I n d o n e s i a I s r a e l Japan Macao Malays ia Korea Peru Sweden S w i t z e r l a n d Turkey

S c h i l l i n g s pe r d o l l a r C r u z e i r o s pe r d o l l a r Canadian d o l l a r s pe r d o l l a r Pesos per d o l l a r D o l l a r s pe r UCE Francs per UCE F r a n c s pe r d o l l a r Kroner pe r UCE Kroner pe r d o l l a r F r a n c s per UCE Francs pe r d o l l a r Marks pe r UCE Marks per d o l l a r UCE pe r £ D o l l a r s pe r £ L i r a pe r UCE L i r a pe r d o l l a r Gu i lde r s pe r UCE Gui lde r s p e r d o l l a r UCE pe r £ D o l l a r s pe r £ D o l l a r s pe r £ Egyp t i an Markkaas pe r d o l l a r HK d o l l a r s per d o l l a r Rupees per d o l l a r Rupiahs pe r d o l l a r I £ pe r d o l l a r Yen per d o l l a r P a t a c a s pe r d o l l a r R i n g g i t s pe r d o l l a r Won p e r d o l l a r S o l e s pe r d o l l a r Kroner pe r d o l l a r F r a n c s pe r d o l l a r L i r a pe r d o l l a r

26 .0 4 . 5 1.0

18 .4 1.0

5 0 . 0 5 0 . 0

7 . 5 7-5 5.6 5 .6 3 .7 3 .7 2 . 4 2 . 4

625 625

3 .6 3 .6 2 . 4 2 .4 2 .3 4 . 2 5 .7 7-5

365 3 .5

360 . . .

3 . 1 311

3 8 . 7 P'2 4.4

11 .5

________

1971

2 5 . 0 5 .3 1.0

2 0 . 1 1.0

5 0 . 9 4 8 . 9

7 . 8

7-5 5-8 5-5 3 .6 3 .5 2 . 3 2 . 4

647 620

3-7 3 .5 2 . 3 2 . 4 2 .3 4 . 2 5-7 7-5

393 3 .7

350

3 . 1 351

3 8 . 7

1.1 1 4 . 9

!

1

1972

2 3 . 1 6 .0 1.0

2 2 . 0 1.1

4 9 . 4 4 4 . 0

7 . 8 6 .9 5 .7 5 . 0 3 .6 3 . 2 2 . 2 2 . 5

654 583

3 .6 3 . 2 2 .2 2 . 5 2 .3 4 . 1 5-i 7 . 6

415 4 . 2

303 . . •

2 . 8 394

>tt 3 . 8

14 .2

1973

19 .6 6 . 1 l . o

2 3 . 8 1.2

4 7 . 8 39-0

7 .4 6 . 0 5-5 4 . 5 3 . 3 2 . 7 2 . 0 2 .5

716 583

3 . 4 2 . 8 2 . 0 2 .5 2-5 3 . 8 5 . 1 7-7

415 4 . 2

271 5 . 1 2 . 4

398 3 8 . 7

4 . 4 3 . 2

14 .2

1974

18.7 6.à 1.0

2 7 . 1 1.2

4 6 . 4 39-0

Z - 3 6 . 1 5 -Z 4 . 8 3 . 1 2 .6 2 . 0 2 .3

776 650

3 .2 2 .7 2 . 0 2 .3 2 .6 3 .8

!!•* 8 .1

415 4 . 5

292 * . 9 2 .4

406 38 .7

4 . 4 3 . 0

13-9

1975

V> l . o

31 .2 1.2

4 5 . 6 3 6 . 8

7 -1 5-7 5 .3 4 . 3 3 . 0 2 . 5 1.8 2 . 2

810 653

3 . 1 2 . 5 1.8 2 .2 2 .6 3 . 7 5 . 0 8 .4

415 6 .4

297 5 .8 2 . 4

484 4 0 . 8

4 . 2 2 . 6

14 .4

1976

17 .9 10 .7

1.0 3 5 . 0

l . l 4 3 . 2 3 3 . 6

6 .8 6 . 0 5 .3 4 . 8 2 . 8 2 . 5 1.6 1.8

930 832

3 . 0 2 . 6 1.6 1.8 2 .6 3 . 9 4 . 7 9 .0

415 8 .0

297 5 . 1 2 . 5

484 57-4

4 . 4 2 . 5

1 6 . 1

1977

16 .5 1 4 . 1

1.1 3 6 . 9

1.1 4 0 . 9 35.8

6.9 6 .0 5-6 4 . 9 2 . 6 2 . 3 1.5 1.7

1,007 1 882

2 . 8 2 . 5 1.5 l'l 2 .6 4 . 0 4 . 6 8 .7

415 10 .5

269 5 .0 2 . 5

484 8 3 . 8

\:\ 1 8 . 0

1978

14 .5 1 8 . 1

1.1 3 9 . 3

1.3 4 0 . 1 3 1 . 4

7 . 0 5 .5 5.7 4 . 5 2 . 6 2 . 0 1.5 1.9

,081 1 849

2 . 8 2 . 2 1.5 1.9 2 . 6 4 . 1 4 . 8 8 .2

442 17 .5

210 5 . 1 2 . 3

484 156.3

Î:S 24 .3

1979

13.4 2 7 . 0

1.2 4 2 . 6

1.4 4 0 . 2 29-3

7-2 5 .3 5-8 4 . 3 2 . 5 1.8 1.5 2 . 0

.139 831

2 .7 2 . 0 1.5 2 . 1 1.4 3 . 9 5 . 0 8 .1

623 25 .4

219 5-3 2 . 2

484 224.6

4 . 3 1.7

3 1 . 1

Source: IMF: International Financial S ta t i s t ics : national s t a t i s t i c s .

t

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