|
|
 |
 |
| Sunday, 15 December 2002 |
 |
|
 |
Business |  |
| News Business Features Editorial
|
Garment industry post-MFA Unless garment industries in the SAARC region as well as Sri Lanka prepare themselves to meet the situation which would arise as a result of the phasing out of the Multi-Fibre Agreement (MFA) by 2004, most would be forced to downsize, Chairman Export Development Board (EDB) Ratna Sivaratnam said last week. Addressing a seminar on 'The implications of the phase-out of the MFA post 2005' in Colombo, he said the garment industry which was previously protected by the quota system, will be exposed to competition after 2005. Clear strategies would be required to tide over this situation, he told the seminar hosted by the Commonwealth Secretariat and the SAARC Secretariat in collaboration with the EDB. In many Commonwealth and SAARC countries, the garment sector is one of the largest employers and foreign exchange earners. In Sri Lanka too, the sector accounts for about 50 per cent of the exports and provides employment to large numbers, he said. Delegates from SAARC countries took part in the seminar along with other officials. Country perspectives pertaining to each member were discussed at the two-day seminar. Each country looked at common issues including an overview of its garment and textile industry, strategies for dealing with the post-MFA environment and weak points for resolution. The advantages of developing backward linkage industries within the SAARC region was also discussed. The MFA is a system of international quotas on developing countries' exports to Organisation of Economic Cooperation and Development countries which has shaped the location of production and evolution of trade in this sector. The growth of the industry in the Commonwealth and SAARC countries has been governed by the quota restrictions negotiated within the MFA of the General Agreement on Tariffs and Trade. While quotas may be seen as a constraint on exports, they have also been a significant factor in the success of some new entrants. (IT) |
|
News | Business | Features
| Editorial | Security Produced by Lake House |
