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CROATIAN TEXTILE INDUSTRY EMPLOYERS URGE GRADUAL CUT IN TARIFFS

ZAGREB, Feb 17 (Hina) - The association of managers and employers in Croatia's textile, leather goods and footwear industry insist that tariffs for the import of manufacturing components, raw material, yard goods, fabrics and final products should gradually be decreased, in compliance with the agreement between Croatia and the World Trade Organisation, while the Economy Ministry has announced one-off cuts or annulments. Last Tuesday the association's presidency held a session at which it expressed its opposition to the Ministry's plans to annul tariffs of six (6), eight (8) and 13 percent on the import of textile raw material and to lessen the 18.8-percent-tariff to 14 percent for the import of the finished products. The association maintains that gradual lessening of tariffs and duties will protect the interest of domestic textile manufacturers and exporters in comparison
ZAGREB, Feb 17 (Hina) - The association of managers and employers in Croatia's textile, leather goods and footwear industry insist that tariffs for the import of manufacturing components, raw material, yard goods, fabrics and final products should gradually be decreased, in compliance with the agreement between Croatia and the World Trade Organisation, while the Economy Ministry has announced one-off cuts or annulments. Last Tuesday the association's presidency held a session at which it expressed its opposition to the Ministry's plans to annul tariffs of six (6), eight (8) and 13 percent on the import of textile raw material and to lessen the 18.8-percent-tariff to 14 percent for the import of the finished products. The association maintains that gradual lessening of tariffs and duties will protect the interest of domestic textile manufacturers and exporters in comparison to importers and traders. Contrary to global trends, in the first 11 months of 2000, Croatia's textile and garment industry, realised a trade surplus of 26.6 million dollars. However, this result was by over eight times smaller compared to the surplus of 221 million dollars in the same period in 1999. This significant fall was the result of a 40.5-percent climb in the import of textile goods in the first 11 months of 2000 as against the same period in the year before, while the export fell by 10.2 percent. The association's presidency established a working team which should draw up a strategy for the development of the Croatian textile industry in coming five years. The draft strategy is expected to be presented in May. The presidency pointed to the vitality of the textile, leather goods and footwear industry which employed about 40,000 workers (according to the data from November 2000), who accounted for almost 20 percent of a total of employees with the country's manufacturing industry. This together with the said surplus, is the sufficient reason for this branch to ask the government to treat it in a different manner than it has done so far. (hina) ms

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