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HK to benefit from lifting of textile quota system
(Xinhua)
Updated: 2004-03-17 14:08

Hong Kong will benefit from the lifting of the World Trade Organization textile quota system in 2005, predicted textile industry representatives on Tuesday.

At a press conference, vice-chairman of Textile Council of Hong Kong Willy Lin said, although cancellation of the quota system is bringing uncertainties to Hong Kong, such as promotion of disadvantage conditions, the textile industry of Hong Kong is expected to receive benefits from it.

According to Lin, since the price of textile quotas is higher in Hong Kong than in some Southeast Asian countries, the lifting of the quota restrictions will lower the cost of textile manufacturing by 20 to 30 percent.

In addition, the textile industry in Hong Kong is mature and have the predominance of delivering goods on time and producing goods with stable quality, all these advantages help increase the industry's competitiveness.

Lin also said, it is very sure that the lifting of the quota system will inevitably lead to a surge in garment exportation in Jan. 2005.

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