Quota System –Maintain or Abolish ? 

According to the WTO ATC agreement, the quota regime will be ended by 31 December 2004. The phasing out of all textiles and clothing quotas is intended to liberalise trade for all WTO member countries.

However, the past record shown otherwise. Only some countries particularly China managed to increase their export tremendously on non-quota items. To prevent the danger of domination by certain countries and to protect local industries, the Istanbul Declaration was endorsed by various industry groups. (Refer to article on pg. 12) The Malaysian Textile Association is invited to endorse the Declaration. In view of the above, we are making a survey to gather views and opinions of members. Please fill in the attached survey form and return by fax to MKMA before 20 May 2004.

Companies are urged to analyse the issue based on your capacity, business nature, products, customers, directions and policy. Some companies all the while are enjoying the quota umbrella to secure orders whereas others losing orders because cannot get quotas.  Will quota be a blessing or a stumbling block to your business? This is the moment to express your point of view.

Liberalisation of Previous Quota Items 

Country

Quota Items

Stage 1 (1.1.1995)

Stage 2 (1.1.1998)

Stage 3 (1.1.2002)

Stage 4 (1.1.2005)

USA  

758

0

14

43

701

EU   

218

0

14

27

167

Canada

295

6

23

27

239

Norway

54

0

46

8

0

  Back to Index of May 2004