Magazine article Economic Review

Canadian Quota Curbs of UAE Garments

Magazine article Economic Review

Canadian Quota Curbs of UAE Garments

Article excerpt

Canadian Quota Curbs of UAE Garments

Canada has officially announced quota restrictions on wide range of readymade garments made in and exported from the UAE. The important quota is operative from June 1 to December 31, 1990. Though the proposal was made by Canada in May this year, the official announcement, imposing the quota unilaterally in end July. The notification see out on July 23 by the Canadian authorities stated that the quota had been announced "in the light of the inability of the government of the UAE to restrain exports of these textile and clothing products to Canada".

Canada has, for the first time, adopted a new method of quota distribution. Unlike the US, which finalised quota levels with the UAE last year, the quantum fixed would be distributed by Canadian authorities to their importers, based on their "import" performance from the UAE. A limited share of the quota has also been distributed to Canadian importers who provided documentary evidence of their firm commitments made with UAE exporters, on or before June 1, 1990. A Canadian delegation visited the UAE recently to study the readymade garment industry and to consider import restrictions on jackets.

Unlike the US, the export products cannot be identified by any simple category number because the Canadians have grouped different products together. For example, pants, slack, jeans, overall, coveralls and outershirts have been grouped together and their imports quota level is restricted to 55.280 pieces, of which pants account for 280,978 pieces. In the case of blouses shirts, T-shirts and sweat shirts, the quota level is 932,989 pieces, out of which blouses and shirts are restricted to 135,056 pieces.

US Team Probing into

Oman's Garment Exports

Export of readymade garments from the Sultanate of Oman has shown a tremendous increase and the growth rates of 14 units in Oman are nearly the same as in the case of garments units in the UAE in the last two years. …

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