The textiles sector employs a large percentage of the Portuguese industrial labour force and faces competition in the international marketplace with countries whose labour standards are much lower. An October 1998 EU decision not to impose an anti-dumping tax on certain cotton products has caused alarm among employers and tarde unions in the industry.
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The textiles sector employs a large percentage of the Portuguese industrial labour force and faces competition in the international marketplace with countries whose labour standards are much lower. An October 1998 EU decision not to impose an anti-dumping tax on certain cotton products has caused alarm among employers and tarde unions in the industry.
At the beginning of October 1998, the Portuguese textiles industry, represented by the Portuguese Association of Textiles and Garments (Associação Portuguesa dos Têxteis e Vestuário, APTV), an employers' association for the cotton industry, expressed its surprise at a decision by the European Union Council of Ministers to reject a proposal that would have imposed an "anti-dumping tax for some cotton products".
The proposal developed by the European Commission would create anti-dumping measures directed at the importation of crude cotton fabrics. It was aimed at third countries (such as various Asia n states or Egypt), that allegedly sell goods below cost, while forcing employees to work long hours for low salaries and providing no social benefits, social security or holidays. This situation is claimed to make for unfair competition between European producers in the textiles industry and their counterparts in some Asian and other countries. However, the proposed was rejected in October 1998 by the Council of General Affairs Ministers.
In Portugal, this decision could have an effect on thousands of jobs. The textiles industry employs 250,000 workers overall with about 51% working in garment-making, 20% in cottons, 13% in knitwear, 6% in textiles for the home and 6% in woollens, with the remaining 4% in other less prominent areas. The industry is responsible for 22% of the county's total exports, 20% of total industrial production, and 30% of all industrial employment. According to the APTV employers' association, for Portugal the decision threatens investment and efforts at modernisation in the sector, and raises doubts about the future efficacy and viability of the anti-dumping instrument.
The Federation of Textiles Industries Trade Unions (Federação dos Sindicatos das Indústrias Têxteis) is also concerned and believes that the government will have to take a stand to defend the interests of textile workers. European trade unions representing the textile sector, including the textiles federation of the General Confederation of Italian Workers (Confederazione Generale Italiana del Lavoro, CGIL), met on 23 October in the north of Portugal to exchange ideas and experiences. The debate centred on identifying topics for negotiations at the European level that would simultaneously deal with the employment factor. The fear that European companies will relocate or subcontract production in other countries is always a part of the debate.
Eurofound recommends citing this publication in the following way.
Eurofound (1998), EU decision alarms Portuguese textiles sector, article.
