Australian New Textile Package


Calls For Tariff Freeze

The Council of Textile and Fashion Industries of Australia (TFIA) said that it is clear at this stage that there are activities undertaken by many of the more significant suppliers of textile, clothing and footwear products that are contrary to Australia's approach to opening up market access. It said that some countries are observing tariff reductions but still keeping Australian textile and clothing products out of their markets by raising domestic taxes on imports. The effect had been offset by luxury goods taxes on imported goods only.

The commission is assessing what changes need to be made to assist provisions for the textile, clothing and footwear industries after January 1, 2005, when TCF tariffs will be cut by 33% across the board.

TFIA argued that tariffs should be frozen at the new levels until January 1, 2010. Action then should be after a review of progress in gaining market access and in tariff reductions. TFIA also argued that the Strategic Investment Program, which offered grants for upgrades and research and development, should continue to 2015. Besides, TFIA urged a revision of anti-dumping procedures, which did not give the protection intended.

More Subsidies For Textile

Looking forward to make goods cheaper for consumers, the Productivity Commission is demanding to extend subsidies for textile and clothing industry until 2013. This extra subsidy is to compensate for a proposed cut in industry tariffs. This can result in additional $840 million for taxpayers.

The commission wants to cut all textile and clothing tariffs to 5% by 2015. Industry tariffs are already slated to fall in 2005, with those on clothes due to drop from 25% to 17.5%, and those on shoes, carpet and cotton sheets and fabrics set to drop 5% to 10%.

To ease manufacturers and workers into the changes, the commission says the Government's $678 million, five-year subsidy for the industry should be extended for another eight years beyond the expiry date in 2005. This would give the industry $560 million over the first four years, and $280 million over the last four years.

Key points of the assistance program included internationalising supply chains, producing more innovative supply chains that can change quickly to suit consumer preferences, and the creation of more niche brands.

The blueprint was put together by the Textile, Clothing, Footwear & Leather Forum (TCFL) which believes the industry's future lies in a shift away from manufacturing to design, global marketing and product innovation.

The Productivity Commission has acknowledged that specific support might be needed for people who lose their jobs as a result of the changes. The Textile, Clothing and Footwear Union said 30,000 jobs had already been lost over the last five years as a result of tariff reductions. The troubled industry worth $9 billion and employs 65,000 people.

 

 

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