Vietnam and the US on May 9 will continue negotiation on the former? WTO entry. High on agenda will be problems that the 2 sides have not reached any agreement. One of those is that the US might take special self-defence measures against textile imports from Vietnam after the country becomes a WTO member like it has done to China. Mr. Le Quoc An, Vietnam Textile and Garment Association Chairman talked with Thoi bao Kinh te Vietnam (Vietnam Economic Times in Vietnamese)? Duc Vuong.
How will Vietnam? WTO accession impact the country? textile industry and might the US take self-defence measures against textile imports from Vietnam like it has done to those from China?
WTO entry will allows textile businesses to develop export markets but bring about a much tougher competition in the domestic market. This sector now has as many as 2,000 enterprises, of which, 90% are small and medium-sized, creating jobs for around 2 million workers, playing an important role in hunger elimination and poverty reduction in rural areas.
The Government has shown its willingness to open the market for a soon WTO accession. However, talks on many topics have not finished yet, including application of self-defence measures. Whether the US will take self-defence measures depends on negotiation this time. It will be a huge challenge against the textile sector of Vietnam if the US does such a thing.
Could you brief about impacts of self-defence measures taken by the US to China? textile exports?
Under an agreement between the US and China when the later joined the WTO, China has to control its textile exports to China until the end of 2008. Once the US sees so quick growth of textile imports from China, it will take self-defence measures to restrict.
Since quotas on China? textile exports to the US were abolished last year, China? textile sector had witnessed a 56.8% growth in its exports to the US. As a result, China represented 56.8% of the US textile? imports. So since September last year, the US stopped imports of many textile categories from China, causing great losses against Chinese exporters as well as US importers. In November, the 2 countries reached an agreement, under which China would limit export quantity of 34 categories until 2008. On the other hand, quantitative limits have been recovered on those 34 categories.
Is it can be understood that the US can do the same thing to Vietnam when Vietnam joins the WTO? Yes, it is. If in the final talk, we cannot reach any agreement on application of self-defence measures, Vietnam? textile exports to the US market might be re-imposed quotas like China?. If this happens, losses will be unaccountable.
How do you comment on impacts of textile imports from Vietnam on this sector in the US when Vietnam joins the WTO?
Vietnam just represents 3.8% of the US? textile imports, behind so many countries and territories that the US does not take self-defence measures. 90% of Vietnam? textile exports to the US is clothing while US firms outsource these categories to enterprises in other countries so imports of textile from Vietnam will not affect the US? textile sector.
The textile industry of Vietnam has to import most of materials and equipments for its production from other countries. Therefore, restriction on Vietnam? textile exports means limit on WTO members?material and equipment exports.
Do you mean that the US has no need to take self-defence measures against textile imports from Vietnam for competitiveness of the textile sector of Vietnam is much lower than that in other countries?
That? right. Competitiveness of the textile sector of Vietnam is low even when quotas are abolished. In the first 9 months of last year, despite quota abolishment, Vietnam? textile exports to the EU market reduced 1.9% from the same period of last year while other countries witnessed positive growth.
