RI'S TEXTILE EXPORTS TO EGYPT EXPECTED TO DROP

Jakarta, Jan 26 (ANTARA) - Indonesia's exports of textile and textile products (TPT) are likely to drop sharply after Egypt imposes a 25 percent import duty on the commodity to protect its own TPT products, a senior official said.
"Egypt has imposed the import duty since Janauary 15, 2009. It affects not only Indonesia's TPT exports but also those of other countries," Director General for International Trade Cooperation of the Trade Ministry, Gusmardi Bustami, said here on Monday.
He said that Egypt was imposing for one year a 25 percent duty of the CIF (Cost Insurance and Freight) value as a temporary safeguard for goods carrying a price of not less than 0.50 dollar per kg, especially for the import of cotton yarn and cotton blend (other than sewing yarn) with HS 5205, 5206 and 5207.
Besides, Egypt is also imposing for one year a 25 percent duty of CIF value as a temporary safeguarding on goods with a price not less than 1 US dollar per kg, especially for the import of woven fabrics of cotton and blend with HS 5208, 5209, 5210, 5211 and 5212.
Bustami said that temporary safeguarding duty was usually imposed by countries whose industries were facing bankruptcy so that they needed import restrictions.
He said Indonesia would try its best to lobby Egypt in order it would exclude Indonesia from the import restriction.
"We will submit our objections and show it our data," Bustami said.
The director general said that based on the WTO rules, developing countries whose export market shares were less than three percent could be freed from safeguarding restrictions.
But the other rules allowed countries which were to impose the safeguarding policy to calculate the market shares of developing countries.
Based on the trade ministry's data, Indonesia's exports to Egypt have been declining since 2005. In the meantime, the world's total exports to Egypt of the eight commodities which were subjected to safeguards increased drastically.***2***