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Taiwan: Quotas - ''the end'' seems endless as textile industry watch their steps |
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2004-8-2
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Apprehensions and doubts are all abound in the Taiwanese textile and garment manufacturing industries as textile quotas come to an end on Jan. 1, 2005.
Some insiders feel that the end of quotas will signal the end of Taiwan''s hold in the industry, others seem more confident and upbeat.
A discussion to its effect was held on July 22, 2004 in Taipei between local garment manufacturers and North American importers.
Held under the aegis of the Taiwan Garment Industry Association (TGIA), the meet allowed industry stakeholders to exchange opinions and discuss their options as the deadline on quotas approaches. All the talk was centred on the challenge posed by China mainland.
"China''s garment industry will skyrocket after the lifting of the quotas, posing a great threat to local garment manufacturers," said TGIA Chairman Roland Tsai. According to a report released last month by the China Textile Institute (CTI), the island''s downstream labor-intensive apparel industry has already lost its advantage to China mainland and Southeast Asian countries where labor costs are much lower.
Since 1990s, many labor-intensive textile operations from Taiwan shifted their plants and operations to China mainland and other countries offering low labor and land costs. According to Wang Ya-ke of the Industrial Development Bureau, it will be large companies, like Tainan Enterprises, Makalot Industrial and Nien Hsing Textile, that will benefit from the end of quotas thanks to their overseas operations. "Small and medium-sized apparel factories will suffer the most," said Wang.
Others were more optimistic about Taiwan''s chances of remaining on top. "Taiwan''s upstream synthetic-fiber industry remains very strong, ranking second in the world in 2003, after China mainland," said Ni Bi-yin, a CTI researcher. "The synthetic-fiber industry is a large part of Taiwan''s overall textile industry, with the production value in 2003 reaching around 28 percent of that of the total textile industry. Taiwan''s synthetic fibers, with sufficient supply, not only meet domestic needs, but are also exported to China mainland, Southeast Asia and the Middle East," Ni said.
According to a spokesman from the Taiwan Man-Made Fiber Industries Association (TMMFIA), Taiwan should be able to hang on to its No. 3 position as a leading textile manufacturer for the year 2004-2005. According to news reports, statistics from the TMMFIA show the annual production of man-made fiber in Taiwan hit 3.81 million tons in 2003, putting the country behind China mainland and the United States. Polyester fiber made up the bulk of this amount, with Nanya Plastics Co. being the island''s biggest producer. The company''s daily output of polyester filament reached 1,197 tons, and it produced 684 tons of polyester cotton every day, according to the TMMFIA.
However, some members wondered if the quotas would ever end, and that the protectionist regime would continue, they said as their logic stems from the fact that some countries, including the United States, Mexico and Turkey, signed the Istanbul Declaration in early March, calling for a three-year extension of the present quota system.
They said only time would tell whether the quota system is lifted, putting everyone on an equal footing, or if producers get to put off reacting for another three years. |
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