The cup of woes of domestic textile units seems to brimmeth over, at least on export front. Already facing an onslaught of anti-dumping probes by developed nations, the sector is under fire froma new quarter now –– the developing nations. The latest is an anti-dumping investigation by South Africa against acrylic blanket imports from here. This comes close on the heels of a similar action on cotton yarn by South Korea, say textile ministry officials. The developed countries are protective about the textile sector and hence have been resorting to such trade defensive measures, say the officials, adding this is so particularly in the case of the United States, the European Union and Canada which have been reluctant to sign the agreement on textiles and clothing as part of the Uruguay Round negotiations which were completed by end of December 1994.

Thereafter the agreement replaced the earlier multi-fibre arrangement and came under the World Trade Oganisation’s discipline from January 1, 1995.

The multi-fibre agreement that itself is a derogation from the general agreement on tariffs and trade had been allowed to continue for a
number of years, adversely affecting market access to the Third World, officials say and point out that moreover, there has been no real integration of removal of quotas under the agreement on textiles and clothing, which is due to be terminated by December 31 next year, after a 10-year transition period.

Among the anti-dumping actions initiated by the European Union against the domestic textile products include unbleached cotton fabrics, cotton type bed linen, polyester texturised yarn and polyester staple fibre. Of these, New Delhi has won two cases — unbleached cotton fabrics and cotton type bed linen — after taking these up with the dispute settlement body of the World Trade Organisation while it has lost the polyester texturised yarn and polyester staple fibre cases.