US groups hit EU plan for poorest countries

Generous European Union proposals to throw open the doors of all developed markets to duty-free and quota-free access to exports from least developed countries (LDCs) have run into fierce opposition in the United States, as well as from textile lobbies in Africa and Latin America - who will lose their preferential status if such a plan were adopted.

US opponents are reported to be preparing a petition to President George Bush to veto the proposal, an appeal branded as 'repulsive' by Hong Kong Textile Council vice-chairman Willy Lin Sun-mo.

'This US petition is so repulsive, it won't get any sympathy votes,' Mr Lin said yesterday. 'I hope Bush will be sane enough to say no to this, otherwise it will be bad for the US image. I admire the EU plan as it will help the poor countries.'

On November 30, EU trade commissioner Peter Mandelson proposed a development package for the Hong Kong WTO ministerial talks that called for all developed countries to offer quota-free and tariff-free access to all LDCs.

The proposal effectively called on wealthy nations to follow the EU's example. Since 1999, the EU has granted tariff-free and quota-free access to everything but arms from the world's 50 LDCs.

However, some members of US Congress are about to write to Mr Bush urging him to oppose the EU proposal, according to a statement by the National Council of Textile Organisations (NCTO) and the American Manufacturing Trade Action Coalition, two US textile industry groups opposing the EU proposal.