Rules to affect garment markets
Tuesday, June 27, 2014
Fiji Times, Fiji
CURRENT rules under a regional trade agreement could see local garment manufacturers lose their markets overnight if they increase productivity and efficiency.
Fiji Textile, Clothing and Footwear Council president Ramesh Solanki said current rules of origin requirements under the South Pacific Regional Trade and Economic Co-operation Agreement were a deterrent to improving productivity and efficiency.
He said any improvements in efficiency would reduce the value of local manufacturing input making it difficult to comply with SPARTECA rules.
This is the reason we have been seeking a relaxation and reduction in the SPARTECA local content from 50 per cent to 25 per cent, which will give us room to make further improvements in our productivity and efficiency and become internationally competitive, Mr Solanki said.
The current scenario is quite complex as if we increase our efficiency we do not comply with SPARTECA rules of origin and lose our market overnight and if we do not increase our efficiency the industry dies a natural death, a no win situation either way.
Mr Solanki said Australia must give Fiji a bridging period by way of reducing the SPARTECA rules of origin from 50 per cent to 25 per cent.
The industry has come a long way since its beginning in the mid 80s and factories have improved their productivity. Many factories are equipped with sophisticated sewing machinery, he said.
Mr Solanki was reacting to comments by special consultant to the Textile Clothing and Footwear Industries Philip Levy that increases in productivity levels here would guarantee the Australian Governments commitment to open its market.
Mr Levy said increasing productivity was one of the Australian Governments conditions for better access to their markets by Fiji manufacturers.
