Select Committee on International Development Minutes of Evidence

FURTHER SUPPLEMENTARY MEMORANDUM SUBMITTED BY THE DEPARTMENT FOR INTERNATIONAL DEVELOPMENT

  This memorandum responds to questions raised by members of the International Development Committee.

1.   Request to list the Textiles and Clothing product groups under quota—those which have been integrated into the Most Favoured Nation regime, and those still to be integrated.

  There are some 160 product groups covered by the Multi-fibre Agreement (MFA). These are listed in the tables at Annex 1, showing separately those which the European Union has already integrated into the World Trade Organisation (WTO) rules under the Agreement on Textiles and Clothing (ATC) and those that remain to be integrated.

  The table shows the 21 textile categories and 13 clothing categories representing a total of 36 per cent of 1990 imports have now been integrated. Those remaining include the eight items deemed most sensitive in terms of domestic industry in the European Union (categories 1-8).

2.   Question: What countries are still to comply with the Trade-Related aspects of Intellectual Property rights (TRIPs) agreement.

  There is no readily available information on developing countries' compliance with the TRIPs agreement. However 27 countries have volunteered to have their compliance reviewed by the WTO TRIPs Council in 2000 and a further 42 in 2001. These are listed at Annex 2. It is reasonable to assume that these countries have a degree of confidence that their legislation will be TRIPs compliant by the time of their reviews.

  The TRIPs Implementation Review Mechanism allows at WTO Members to see each other's level of compliance and problems of implementation that are being faced. If it is found that a country is not TRIPs compliant there is no automatic sanction.

  There is no information on whether least developed countries are at present TRIPs compliant.

3.   Question: What are the costs of introducing IP protection as required by the TRIPs agreement?

  This question admits of no general answer because each country tackles the implementation of its commitment under the TRIPs agreement from a different starting point. It can however be answered illustratively from the effort of Mexico and Indonesia to strengthen their administration of intellectual property rights.

  In 1992 Mexico, in preparation for joining the North Amercian Free Trade Area de-merged its patent and copyright protection function from its Ministry of Commerce and Industrial Development and with assistance from the World Bank and WIPO, set up a free standing and self-financing Mexican Industrial Property Institute. The project to upgrade the skills of staff inherited from the ministry and to acquire hardware and data bases cost £32 million which was disbursed over the years 1994 to 1996. This cost spread over three years, represents approximately 0.14 per cent of Mexico's capital budget. Once established the Institute recovered more than three times its operating costs from fees paid for filing patents and trade marks. Its cumulative net earnings exceeded its establishment costs after approximately 3 years.

  In Indonesia the World Bank, in 1997, allocated the sum of $14.7 million out of a project of $34.5 million for upgrading information technology, to technical assistance to improve intellectual property protection and implement the TRIPs agreement. The sum was to be disbursed over several years and would be devoted to bringing laws and regulations up to date and to strengthen the institutions involved. The $14.7 million allocated for improvements to the intellectual property regime represents approximately 0.0025 per cent of Indonesia's capital expenditure budget.

  Smaller developing countries may wish to pool resources and develop communal patent offices.

Department for International Development

June 2000

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ANNEX 1

ATC: THE STAGES OF INTEGRATION OF MFA CATEGORIES 1995-2005

First stage MFA categories integrated 1st January 1998
Textiles		per cent share in 1990 EU imports
94	wadding of textile materials	0.4
99	coated textile fabrics linoleum rubberized textile fabrics etc	0.3
126	artificial staple fibres	3.9
134	metallized yarn	0.0
148A	jute yarn	2.3
149	woven jute fabrics 150cm width	0.8
150	woven jute 150cm width sacks and bags thereof	2.3
153	used sacks and bags of jute etc	0.0
Clothing
69	womans knitted petticoats	0.1
75	mens knitted suits and ensembles	0.0
85	woven ties bow-ties and cravats	0.0
	Tariff lines outside tariff Ch 50-63	8.8
	Total	18.9
Second stage MFA categories integrated 1st January 1998
Textiles		per cent share in 1990 EU imports
41	yarns of continuous synthetic filament	3.9
46	carded or combed wool	0.9
58	knotted carpets	1.1
61	narrow woven fabrics	0.2
65	knitted fabric	0.9
67	knitted clothing accessories household linen curtains blankets sacks and bags	0.4
91	tents	0.3
96	non-woven fabrics and articles thereof	1.3
100	impregnated coated covered textile fabrics	0.5
110	woven pneumatic mattresses	0.3
111	other woven camping goods	0.0
122	woven sacks and bags of flax	0.0
124	synthetic staple fibres	5.6
Clothing 19	woven handkerchiefs	0.1
70	panty-hose and tights full length hosiery of synthetic fibres	0.2
72	swimwear	0.1
74	women's knitted suits and ensembles	0.2
76	woven industrial or occupational clothing aprons smock overalls etc	0.7
77	woven ski suits	0.1
84	woven shawls scarves mufflers etc	0.1
86	corsets corset-belt braces etc	0.1
87	woven gloves mittens and mitts	0.2
88	woven gloves mittens and mitts	0.1
	Total	17.3

  Source: Eurostat, OETH.

Third and Fourth stage MFA categories to be integrated 1 January 2002 and 1 January 2005
Textiles
Presently under EU quota		per cent share in 1990 EU imports
1	cotton yarn	7.9
2	woven fabrics of cotton	9.3
3	woven fabrics of synthetic discontinuous fibres	2.8
9	terry towelling and similar terry fabrics woven toilet linen	0.8
20	woven bed linen	1.6
22	yarn of synthetic staple fibres	1.8
23	yarn of artificial staple fibres	0.7
32	woven pile fabrics and chenille fabrics	0.2
33	woven fabrics of synthetic filament yarn 3m sacks and bags	1.2
35	woven fabrics of continuous synthetic fibres	1.5
36	woven fabrics of continuous artificial fibres	0.3
37	woven fabrics of artificial staple fibres	1.4
39	woven table linen toilet and kitchen linen	0.6
50	woven wool fabrics	0.1
59	carpets and other floor coverings	1.6
90	twine cordage ropes etc of synthetic fibres	0.2
97	nets and netting made of twine cordage or rope	0.1
109	taupaulins sails sun-blinds etc	0.1
115	flax or ramie yarn	0.0
117	woven fabrics of flax or ramie	0.1
118	table toilet and kitchen linen of flax or ramie	0.1
120	woven curtains etc of flax and ramie	0.0
123	woven pile and chanille fabrics shawls scarves etc of flax	0.0
125A	synthetic continuous filament yarn	2.2
125B	synthetic monofilament strip etc	0.2
127A	yarn of continuous artificial filaments	0.2
127B	artificial monofilament strip etc	0.0
136	woven silk fabrics	0.1
140	knitted fabrics of metal threads or metalized yarn	0.0
142	carpets and floor coverings of sisal etc or hemp	0.0
145	twine cordage ropes etc of abaca or of true hemp	0.0
146A	agricultural binder and bailer twine or sisal etc	0.4
146B	twine, cordage, ropes etc of sisal	0.0
151A	floor coverings of coir	0.2
151B	carpets and floor coverings of jute etc	0.0
163	gauze and articles of gauze, put up for retail sale	0.3
Presently not under EU quota		per cent share in 1990 EU imports
34	woven fabrics of synthetic filament yarn 3m	0.0
38A	knitted synthetic curtain fabric	0.1
38B	net curtains	0.0
40	woven curtains	0.2
42	yarn of continuous man-made fibres yarn of artificial fibres and filament	0.2
43	yarn of man-made filament yarn of artificial staple fibres	0.1
47	yarn of carded wool	0.1
48	yarn of combed wool	0.2
49	wool yarn put up for retail sale	0.0
53	cotton gauze	0.0
54	artificial staple fibres	0.0
55	synthetic staple fibres	0.2
56	yarn of synthetic staple fibres put up for retail sale	0.1
60	hand made tapestries gobelins etc	0.0
62	chenille yarn gimped yarn tulle labels badges braids etc	0.1
63	knitted elastic fabric of synthetic fibres raschel lace	0.1
66	woven travelling rugs blankets	0.1
93	sacks and bags of woven fabrics	0.1
95	felt and articles thereof	0.2
98	other articles made from yarn twine cordage or rope	0.0
101	twine cordage ropes etc other than of synthetic fibres	0.1
112	other made-up textile articles	0.3
113	woven floor cloths dish cloths etc	0.2
114	woven fabrics and articles for technical uses	0.2
121	twine cordage ropes etc of flax or ramie	0.0
129	yarn of coarse animal hair	0.0
130A	silk yarn other than spun from waste	0.0
130B	silk yarn other than of category 130a	0.0
131	yarn of vegetable textile fibre	0.0
133	yarn of true hemp	0.0
135	woven fabrics of coarse animal hair	0.0
137	woven pile and chenille fabrics, narrow woven fabrics of silk	0.0
138	woven fabrics of paper yarn	0.0
139	woven fabrics of metal threads or metalized yarn	0.0
141	travelling rugs and blankets of materials of category 140	0.0
144	felt of coarse animal hair	0.0
146C	twine, cordage, ropes etc of jute	0.0
152	needle loom felt of jute etc	0.0
Clothing Presently under EU quota		per cent share in 1990 EU imports
4	knitted shirts t-shirts lightweight fine knit roll or turtle necked jumpers etc	2.8
5	knitted jerseys pullovers slip-overs waistcoats bed-jackets anoraks etc	2.5
6	woven beeches shorts and trousers etc	4.3
7	woven or knitted women's blouses shirts and shirt-blouses	1.2
8	woven men's shirts	2.2
10	knitted gloves	0.4
12	panty-hose and tights stockings socks etc	0.6
13	knitted underpants briefs and knickers	0.6
14	men's woven overcoats raincoats and others	0.3
15	women's woven overcoats raincoats and other jackets and blazers	0.9
16	men's woven suits and ensembles tracksuits with lining	0.5
17	men's woven jackets and blazers	0.4
18	woven singlets or other vests underpants briefs pyjamas petticoats etc	0.7
21	woven parkas anoraks windcheaters etc	1.9
24	knitted nightshirts pyjamas bathrobes dressing gowns etc	0.9
26	women's dresses	0.6
27	women's skirts	0.6
28	knitted trousers bib and brace overalls breeches and shorts	0.5
29	women's woven suits and ensembles tracksuits with lining	0.6
31	brassieres	0.1
68	babies' garments and clothing accessories	0.8
73		0.7
78	all other unspecified woven clothing	1.2
83	knitted overcoats jackets blazers and all other unspecified knitted clothing	0.3
156	knitted blouses and pullovers of silk	0.0
157	knitted garments mainly of silk and linen not elsewhere specified	0.1
159	woven dresses blouses and shirt blouses of silk	0.1
160	handkerchiefs of silk	0.0
161	woven garments mainly of silk or linen not elsewhere specified	0.3
	Total % Stages 3 and 4*	65.8
	*includes 0.9 per cent of imports which are not included in MFA categories.

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ANNEX 2

Table 1 shows the list of countries who have volunteered to be reviewed in 2000 and Table 2 the list of countries scheduled to be reviewed in 2001.

Table 1

26-30 June 2000	27 November to 1 December 2000
Belize	Bahrain
Cyprus	Chile
El Salvador	Colombia
Hong Kong, China	Egypt
Indonesia	Estonia
Israel	Ghana
Korea	Guatemala
Macau	Kuwait
Malta	Paraguay
Mexico	Peru
Poland (areas for which not reviewed in 96-98)	Qatar
Singapore	Saint Lucia
Trinidad and Tobago	Turkey
	United Arab Emirates

Table 2

2001
Antigua and Barbuda	Fiji	Pakistan
Argentina	Gabon	Papua New Guinea
Barbados	Grenada	Phillipines
Bolivia	Guyana	St. Kitts and Nevis
Botswana	Honduras	St. Vincent and Grenadines
Brazil	India	Senegal
Brunei Darussalam	Jamaica	Sri Lanka
Cameroon	Kenya	Suriname
Congo	Malaysia	Swaziland
Costa Rica	Mauritius	Swaziland
Cote d'lvoire	Morroco	Tunisia
Cuba	Namibia	Uruguay
Dominica	Nicaragua	Venezuela
Dominican Republic	Nigeria	Zimbabwe

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Prepared 29 November 2000