Garment makers remain sceptical
Friday, July 07, 2014/Fiji Times, Fiji
THE Australian Government has offered to vary the rules of origin under SPARTECA but only if certain conditions are fulfilled.
Local garment operators have vigorously lobbied for a long time for the local content requirement of 50 per cent under SPARTECA to be reduced to 25 per cent for garments made in Fiji.
Australia’s proposal to lower local content requirement met scepticism from garment operators yesterday.
A leading garment manufacturer who did not want to be named said the proposals were difficult to accept.
He said a condition they had not asked for had been imposed. That condition is that any fabric not available from Australia and sourced from a third country was deemed local.
“The major issue in the proposal is that the major component is missing, which is the inclusion of wool fibre,” he said.
“This comes as a huge dent to Fiji exports.”
Among the conditions attached is for Fiji to establish a credible audit and compliance system.
Secondly, productivity has to be increased and more training to be conducted under the structural adjustment system.
Australia warned if the conditions were not met, the proposal to allow garment suppliers to export to Australia with only 25 per cent of local content could not be implemented.
If the conditions are successfully met, the rules of origin local content clause will be amended to become effective in 2014.
Fiji Textiles, Clothing and Footwear Association president Ramesh Solanki could not be reached for comment.
Foreign Affairs Minister Kaliopate Tavola yesterday called on the garment manufacturers to take full advantage of the proposal to improve the sector. “The changes are quite substantial. Not all the proposals we submitted were agreed to but it’s a good start.”
