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Australian Textile, Clothing, Footwear and Allied Industries
Tariffs
In the Area of study: Australian Textile, Clothing, Footwear and Allied Industries you will investigate and debate a range of issues that affect the consumer, producer, manufacturer and retailer. One such issue in Australia is tariffs. The level of industry protection will impact on jobs in the industry and the long-term viability of the industry to compete in an ever-increasing global market.
Outcomes
This material addresses aspects of the following syllabus
outcome:
H5.2 The student analyses and discusses the impact of
current issues on the Australian textiles industry.
Source: Board of Studies NSW, Stage 6 Textiles and
Design Syllabus, Preliminary and HSC Courses
(2007)
The government is committed to ensuring Australia will meet its APEC commitment to free trade by 2010. The Textile, Clothing and Footwear (TCF) industries have also committed to this objective. This tutorial will assist you in exploring and analysing these important current issues impacting on the Australian textile industry.
The textile, clothing and footwear industries
On 10th September, 1997 the Prime Minister, John
Howard, and the then Minister for Industry, Science and
Tourism, John Moore, made a joint press release outlining a
package for the TCF industries. The aim was to promote job
security and to help develop sustainable and internationally
competitive textiles, clothing, leather and footwear (TCF)
industries in Australia. A key element of this package was the
reduction of tariffs.
Some facts
The TCF package should assist in securing jobs in TCF industries by encouraging additional investment and promoting the development of an internationally competitive TCF sector in the lead-up to the free trade environment beyond 2010.
Key features of the Government's TCF package:
- continue tariff decreases through to 2000, then maintain tariff levels from 2000 until 2005
- introduce legislation to reduce tariff levels from 2005
- develop forward looking action agendas
- establish a TCF Investment Program to build globally competitive capacity in the industry
- establish a TCF Technology Development Fund and a national centre of excellence for TCF training (total $20 million)
- establish a Market Development Program to increase export capabilities ($2.5 million per year)
- an expanded Overseas Assembly Program to enable increased use of Australian textiles
- examine removal of anomalies in TCF by-laws and tariff concessions
- review in 2005 to take account of our APEC commitments and progress on market access.
Free trade by the year 2010 means a significant reduction in tariffs and industry protection by government.
The TCF package aims to increase value-added activity in natural materials processing, design, research and development, marketing, and product assembly, strategic alliances, joint ventures, and effective value chain management as well as investment in skills development.
Tariff cuts threaten textile workers' jobs
The Industry Commission recommends that tariffs to the textile clothing and footwear industries be drastically reduced to 5% for most TCF products by 2010.
It is believed by some that the industry will not be able to compete with overseas businesses, therefore business will decrease and TCF businesses will close and jobs will be lost.
The main criticism of the planned tariff cuts is the tariff barriers which Australian companies face when they export Australian goods overseas. Tariffs might guarantee profits but they don't guarantee jobs. The TCFUA recommends no further cuts in tariffs. This move would protect Australian jobs already in the textile and clothing industry.
For more information about government initiatives for the Australian Textile, Clothing, Footwear and Allied Industries visit the following web site http://www.industry.gov.au 
, type TCF into the search box.
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