Govt to chart path for post-quota textiles trade

The government is looking at a roadmap to help the domestic textiles industry successfully compete and grow in the post-quota trade regime.

"We should look more into the future and prepare for the new trade regime. There is a need for a collective resistance against protectionist attitudes," Commerce Secretary Dipak Chatterjee said at the 39th session of the International Textiles and Clothing Bureau (ITCB).

The Multi-Fibre Agreement's country quota regime comes to an end this December.

The commerce secretary said exporters would have to bear some transition costs, but moving ahead under the quota regime would have adverse economic consequences on multilateral trade and exports.

Planning Commission Member NK Singh asked ITCB to work towards dismantling the quota regime and to strengthen its vigilance capabilities, so that it could function as a vigilance and monitoring bureau.

Singh said dismantling of the quota regime has to be "true and full", encompassing all trade issues, including visa restrictions, rules of origin and transshipment issues.

The government has set a target of $ 50 billion of textile exports by the end of the decade.