EU lobbying

The Textile and clothing industry has emerged to become an important to Indonesia largely under the Multi-fiber agreement (MFA ) which goverend international trade in textile and clothing. Taxtiles as a largest devisa in sector non migas for indonesia. Textiles gives the postive value for indonesian trade blacnce when indonesia joined n gatt, indonesia got so many profit but when mfa had regulation that everthing need quota,indonesia loss, MFA is non trarif barriers. Under the WTO Agreement on Textiles and Clothing (ATC), all textile and clothing (T&C) quotas maintained by industrial countries under the now defunct Multifiber Arrangement (MFA) would be removed over the period 1995–2005. During the 10-year transition period, the remaining quotas would also be enlarged Because these quotas are bilateral and the extent of their restrictiveness varies from country to country, their removal will alter the competitiveness of individual exporting countries. Countries that have been facing more restrictive quotas will see their competitive position improve after the quotas are removed, while those that have been less restricted by quotas may face difficulties maintaining their current market shares. The intensity of these shifts in competitiveness will be amplified by the effective backloading of the quota phase-out under the ATC. Most of the restrictive quotas are to be removed only at the end of the transition period, turning what could have been a gradual adjustment process into a major shock at the beginning of 2005.3 indonersia depends heavily on the exports of textiles and clothing, or ready-made garments (RMG), 4 and is potentially vulnerable to the large shock of the final stage of the quota phase-out. In 2002, these exports accounted for over 77 percent of the country’s total merchandise exports—one of the highest shares among major exporting countries (At the same time Indonesia depends on quota-restrained markets for about 94 percent of its RMG exports, among the highest ratios in the world. Thus, the balance of payments consequence of a sharp decline in RMG exports could be severe. Despite the impressive export performance during most of the 1990s, recent export performance indicates that Bangladesh may not be sufficiently competitive to maintain its share in a quota-free world market after 2004.

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