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Textile News
James A. Morrissey, Washington Correspondent

Indonesia Agrees To Combat Textile Transshipments

By James A. Morrissey, Washington Correspondent

The governments of the United States and Indonesia have signed a memorandum of understanding (MoU) saying they will cooperate on efforts to combat illegal transshipments of textiles and apparel into the United States.

The agreement followed a meeting between US Trade Representative Susan C. Schwab and Indonesian officials aimed at improving trade relationships between the two countries. The MoU provides for customs cooperation, identification of textile and apparel manufacturers, and joint verification visits to provide each country’s government with the information necessary to stop illegal trade in textiles and apparel. In announcing the agreement, Schwab said, “This MoU establishes a formal mechanism to help safeguard legitimate textile trade between our two countries, while stopping illegal textile shipments.”

The United States is Indonesia’s largest market for exports of textiles and apparel, with products valued at $3 billion, making it the United States’ fifth-largest textile and apparel supplier.

The United States has previously concluded MoUs with the Philippines, Hong Kong and Macau, and is in the process of negotiating one with Taiwan. In addition, illegal transshipments are being addressed in bilateral agreements under negotiation with South Korea and Malaysia.

October 3, 2006