Annual Report Activities of the Year 2010 Annual Report

European Apparel and Textile Confederation

Activities of the year 2010 Annual report Activities of the year 2010 Annual report

Table of contents

Industrial strategy...... 4 Economic reports and statistics ...... 26

1. The industry reaction to the economic crisis...... 6 1. EC Policy in the Statistical field...... 26

2. Textile fibres names draft regulation...... 8 2. Economic & Statistical reports...... 26

3. The Euro-Mediterranean dimension of the Industrial policy: 3. EC Project...... 27

a focus on the Balkan region ...... 10

Social matters...... 28

Trade...... 12 1. European Social Dialogue ...... 28

1. Revision of Euratex Industrial and Trade Policy...... 12 2. Other Social Initiatives ...... 29

2. Pakistan...... 13

3. Raw Materials...... 13 Intellectual property and fight against counterfeiting...... 32

4. Bilateral Trade Negotiations ...... 14 1. IPR in the Single Market...... 32

5. Made In...... 15 2. IPR at the EU borders & at International level...... 34

6. Rules of Origin...... 16

7. Trade Policy Revision...... 16 Environment...... 38

8. GSP Revision ...... 17 1. Climate...... 38

9. Market Access Strategy ...... 17 2. Sustainability...... 38

10. Commission events on T&C ...... 17 3. Product Safety...... 42

11. International Cooperation...... 18 4. Industrial Emissions Directive (IED) (former IPPC)...... 43

12. Relations with EU Institutions and other business organizations...... 18 5. Chemical Policies...... 44

6. Other issues of importance...... 48

European Research and Innovation Policies...... 19

1. The European Technology Platform:...... 20 Sponsors

2. Projects...... 24 GINETEX...... 49

TTSIS-TTEA...... 50

Keyfigures & Euratex Mission...... 53

3 Activities of the year 2010

Industrial strategy Francesco MARCHI

The need for a more inclusive and coherent industrial nership between the EU and its major industries in its policy within the EU was felt necessary as a way to fos- early 2010 Manifesto, entitled “Shifting Gears for a ter and reinforce the EU economy after the ending of New Industrial Policy”, so that manufacturing industry the financial and economic crisis. Indeed for the Euro- can remain one of the engines of the economy. pean textile and clothing industry, the EC Commission and Member States should recognise the crucial role With that in mind, when “Europe 2020”, the EU’s played by the manufacturing industry and the need for growth strategy for the coming decade was revealed EC Vice-President Tajani & President Peter Pfneisl a fresh approach to industrial policy. The latter must during the 1st quarter of 2010, Euratex acted to ensure be implemented with no a-priori on the sectors con- coherence and effectiveness of the future EU policy for Commission services to ensure that the European cerned in order to have a broad-based modernisation the textile and clothing industry. In that context Eura- industrial policy provides a framework contributing of the industry. Definitively the future EU Commission tex contributed actively in number of the public con- to the sustainable competitiveness of the textile and industrial policy should ensure to the textile and cloth- sultations related not only to the overall Europe 2020 clothing industry in Europe. ing sectors a sound, reliable and balanced competitive approach but also on (a) communications supporting • The flagship ‘An industrial policy for the globalisation environment able to foster a sustainable growth and the overall strategy like: ‘Trade growth and Jobs’, the era’ launched end 2010 has to be seen as a decisive allow the development of the industry’s key competi- ‘Raw Material Initiative’, the ‘Single Market Act’ or (b) step towards the expected partnership requested tive drivers- knowledge, creativity and innovation. flagships initiatives key for the future of the textile and by the ACEI and Euratex. But it will only make a dif- clothing industry like: ‘Innovation Union’, ‘An Agenda ference if it is implemented in a coordinated manner This was/is the belief of Euratex and of the Alliance for for new skills and jobs’ or ‘An industrial policy for the by the EU institutions, member states and business. a Competitive European Industry (ACEI)1 – of which globalisation era’, etc.. • Overall the communication on the future EU in- Euratex is part – that called for a new industrial part- dustrial policy has to be valued as very positive On the specifics of the new industrial policy, Euratex for the maintenance of the manufacturing industry can only be more than satisfied with the results: in Europe and in particular for our industry. There 1 The Alliance regroups European automotive, chemicals, ce- are clear references to: (a) the key role of a strong, ment, pulp and paper, food and drink, textile and apparel, electricity, iron and steel, non-ferrous metals, oil refining and • During the June 2010 General Assembly the Eu- competitive and diversified industrial manufacturing engineering industries, and Businesseurope. Its objective is ropean Commission Vice-President Tajani outlined chain for EU’s competitiveness; (b) the fact that all to promote the competitiveness of European industry on a the future lines for an EU industrial policy and high- sectors are important; (c) the need to consider the global scale. Altogether, the sector members of the Alliance employ 23 million people, generating €5 trillion yearly, and lighted his specific priorities for the sector, provid- whole value and supply chain for all industries – in- contributing with €1.3 trillion added value to the EU GDP. ing solid basis to continue working very closely with cluding the creative ones, etc

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The Euratex Action Plan

• As said the communication is in line with Euratex In 2010 EURATEX adopted a clear action plan for tive environment able to foster a sustainable main plea for an integrated policy approach and the 2010-2011 period and beyond whose pillars growth and allow the development of the In- contains several specific references to the textile can be summarised as follow: dustry’s key competitive drivers: Knowledge, and clothing sector as well as to ideas advocated 1. Foster a new framework for the Textile Creativity and Innovation. In this context the in Euratex contributions in areas like: (i) stimulating & Clothing trade policy: EU textile & cloth- two main roads to be followed will encompass: more innovation; (ii) promoting more efficient use ing Industry is striving to obtain an improved a. Sustainability: should aim at creating a vol- of raw materials; (iii) reinforcing framework policies market access at sectoral level that enables untary framework defining sustainability in conducive to SMEs activities; (iv) preserving and Consumers worldwide to buy innovative and the textile & clothing Industry which has to promoting an EU qualified work force; (v) favour- sustainable textile and clothing products at encompass best available practices in en- competitive prices. The elimination of all Tariff ing the modernisation process of the industry; (vi) a vironment, energy and water efficiency, se- and Non-tariff Barriers is a priority which must global and fair trade for EU companies to preserve curity, safety and social standards would EU competitiveness. be achieved through a multilateral or a bilateral be viewed as a positive sign from the In- approach. Commission negotiators should en- dustry, overall improving our Image and at Now the challenge will be to ensure coherence and sure that the textile and clothing industry gains the same time generating new market op- sustainability among the policies to be developed. sufficient benefits through out the bilateral or portunities. Hence the importance of: (a) effective and tangible multilateral agreements and unilateral provi- b. R&D & Innovation as the EU textile & links between the flagships of interest to our industry sions. In this context it is crucial to obtain re- clothing Industry has successfully mas- in the Europe 2020 strategy; (b) strong commitment assurances about the coherence between the tered the challenge of globalization by from Member States and the European Parliament to EU trade policy and the EU industrial policy (at support and enforce effectively the overall strategy; large) with a more coherent recourse to specific investing in innovation and creativity as (c) ensuring that the points highlighted would be ef- and independent impact assessments, across the basis for growth and business de- fectively and tangibly implemented and would contain all policies, on the textile and clothing industry. velopment. Being a knowledge driven important and useful measures for the benefit of the 2. Obtain better coherence between the EU Industry we believe our core competen- textile and clothing industry. industrial policy (at large) and the EU trade cies need to be nurtured by creating a policy. Commission and Member States favourable environment which promotes should ensure the EU textile & clothing Industry investment in R&D at the same time en- has a sound, reliable and balanced competi- suring prompt and sustainable returns.

5 Activities of the year 2010

1. The industry reaction Yearly production changes 2009-2011 to the economic crisis Motor vehicles etc. 2010 can be valued as a “positive” year in production Basic metals Computer, electronic, optical and turnover terms after two dreadful years, but the Electrical equipment economic impact of the crisis was still tangible and Machinery & equipment n.e.c. industry did not yet come back to the pre-crisis levels. Chemicals Contacts along the value chain confirmed the useful- Textiles ness and the role plaid by the Temporary Framework Rubber & plastics adopted end 2008 by the Commission to mitigate the Other fabricated metal products Pharmaceutical products effects of the financial and economic crisis. 2009/2008 Paper & paper products Wood & wood products 2010/2009 While Euratex did not underwent similar exercise as Leather & related products Other non-metallic mineral prod. in 2009, to measure and value the problems faced by 2011/2010 companies in their daily life, regular reports from mem- Clothing (2m) Furniture bers did show that despite improvements in the overall Other transport equipment situation textile and clothing companies were still fac- -28% -23% -18% -13% -8% -3% 2% 7% 12% 17% 22% ing - even though in a less acute manner - the effects

of the credit crunch and of the other problems identi- Year on year change fied the previous year. To this it should be added that Source: Euratex on Eurostat short terms indices markets – in the EU and abroad - were still fragile due to uncertainties linked to the unsustainable growth of tance for the textile and clothing companies and did 13 Member States of which only 4 where promoted by the raw material prices. correspond to wishes expressed at national level: (a) the Central and Eastern Europe states. the compatible aid up to € 500.000,00 per company All this reduced the positive impact reported by the (derogation to the de minimis regulation) which was in Both measures proved to be very useful in that they al- textile and clothing companies benefitting from the place in 23 Member States of which 10 are to be found lowed companies and in particular SMEs to resist the special measures implemented by the local admin- among the Central and Eastern Europe members and adverse effects of the crisis. Such provisions did not istration among which two were of particular impor- (b) the export credit instrument that was activated in create competition distortions in the Single Market but

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in fact sustained equally the growing recourse to tech- Real Economy national measures adopted as response to the nancial/economic crisis and falling Real Economy national measures adopted as response to the nancial/economic crisis and falling nological and Non Technological Innovation (NTIs) in under the Temporary Framework (2009-2010) under the Temporary Framework (2009-2010) by Member States 8 particular in the “creative” textile and clothing industry 25 to support business activity and the need to preserve market shares in export markets. 7 20 Mid-2010 it became obvious that the economic situa- 6 tion was less favourable then expected in 2008 when the decisions were taken to stop special support pro- 15 5 grammes by end 2010. It appeared that a sudden 4 end of the temporary framework could threaten the fragile and uncertain economic recovery, in particular 10 3 for SMEs in the creative industries like the textile and clothing sector. In that context Euratex acted toward 2 the Commission and the overall industry in advocating 5 the need to support economic recovery by extending 1 the possible use of certain of the temporary instruments designed end 2008 in order to better manage the phas- 0 Compatible Subsidized Export credit Aid Subsidised Risk capital Green Subsidized Green 0 ing out of those measures that had a substantial sup- aid (500.000 guarantees agriculture Interest rates schemes Products guarantees Reduced DE FR HU IT RO FI SI UK AT LV NL BE ES GR LT LU SE BG CZ SK DK EE PT IE MT PL €) National (15.000€) Regional Interest rates port and use throughout the Member States. Euratex Total measures adopted in 2009-2010 Measures prolonged until end 2011 plea focused on the compatible limited amount of aid Temporary schemes 2009-2010 Prolongation 2011 provisions which has temporarily raised the ceiling to Source: EURATEX on MEMO/11/122 on “State aid: Overview of national measures adopted as a response to the financial/economic € 500.000,00 per enterprise over three years. crisis”, Brussels, as of 20th March 2011

The plea for an extension by one year was acknowledged Interestingly the two measures of greater interest to the strument (38,5% of prolongation) - even though the over- by the Commission late in the year and 26 of the 87 meas- textile and clothing industry did represent half of the meas- whelming majority of those would be supported in the ures (30%) introduced in 2009-2010 were prolonged until ures renewed - the compatible aid up to € 500.000,00 former EU-15 Member States (Denmark, Finland, France, end December 2011 as requested by 12 Member States. per company (35% of renewal) and the export credit in- Germany, Italy Netherlands, Portugal and UK).

7 Activities of the year 2010

Real Economy national measures adopted as response to the nancial/economic crisis and falling Real Economy national measures adopted as response to the nancial/economic crisis and falling under the Temporary Framework (2009-2010) under the Temporary Framework (2009-2010) by Member States porteur. Since the start it appeared that there was a 8 fundamental misunderstanding regarding the scope of 25 the draft regulation. The EC Commission, the Mem-

7 ber States, the industry and the retailers want to keep the scope as narrow as possible while modernising 20 6 and simplifying the adoption of the new fibre names, the rapporteur, as well as other influent members of the IMCO committee took a completely different ap- 15 5 proach. In their views the Textile fibres names draft

4 regulation is the opportunity to clarify, complete and improve the labelling system for textile and clothing 10 3 products by “providing consumers with accurate, relevant, intelligible and comparable information on the characteristics of textile products”. 5 2

1 All along the first part of 2010, Euratex and its mem-

0 bers developed intensive contacts with the MEPs in Compatible Subsidized Export credit Aid Subsidised Risk capital Green Subsidized Green 0 the hope to convince them not to follow the IMCO rec- aid (500.000 guarantees agriculture Interest rates schemes Products guarantees Reduced DE FR HU IT RO FI SI UK AT LV NL BE ES GR LT LU SE BG CZ SK DK EE PT IE MT PL €) National (15.000€) Regional Interest rates ommendations. Despite understanding and acknowl- Total measures adopted in 2009-2010 Measures prolonged until end 2011 edgement of our position, the IMCO report on the draft Temporary schemes 2009-2010 Prolongation 2011 regulation was adopted in May 2010 in first reading by Source: EURATEX on MEMO/11/122 on “State aid: Overview of national measures adopted as a response to the financial/economic crisis”, Brussels, as of 20th March 2011 the Parliament in its plenary session, confirming the intentions of the MEPs to over-informing the consumer 2. Textile fibres names draft marking (96/74/EC and 96/73/EC) faced acceleration when buying garments in the EU. regulation in 2009 when the Committee on the Internal Market and Consumer Protection (IMCO) of the European As far as the EU Council is concerned, Euratex worked Launched in 2006, the modernization of the directives Parliament (EP) nominated Mr Manders (NL-ALDE – along the same line with the Member States and in a relating to the textile fibres denomination and their Alliance of Liberals and Democrats for Europe) as rap- way managed to convince them of the need not to

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The new marking and labelling requirements as proposed by the European Parliament A dream team or a nightmare for the industry? divert from the original scope of the draft regulation. This was accepted by the Council late 2010 and by this vote launched the second reading procedure that The new information requested by the European Parliament for Improve consumers should end during the first semester of 2011 with Textile and Clothing products sold into the EU market understanding of the the hope that both actors would come to a common additional information agreed text more in line with the reality of the indus- • The origin of Textile and Clothing products • Electronic labelling, includ- try needs. The battle will remain on the list of addi- ing Radio-Frequency Iden- tional and extensive information requested (see box), • The indication of animal-derived materials in a Textile and Clothing tification (RFID), an approach that Euratex opposed since the start as product it could be counter-productive due to existing legisla- • Inclusion of an identifica- • The care label based on an harmonised care labelling system tions in certain fields while in others such approach tion number on the label could be very divisive for the sector. • The size label based on an EU-wide uniform size labelling system for which shall be used to ob-

clothing and footwear, tain additional on-demand In 2011 Euratex and its members will have to work information about the hard to convince the MEPs hat in the second read- • An ecological label relating to the environmental performance and sus- product, for instance via ing the original IMCO approach should be amended tainable production of textile products Internet, in such way to reduce the burden for companies while • A social label to inform consumers about the social conditions under at the same time it should be ensured that Member • Use of language-inde- which a textile product was produced States, in their attempt to find a compromise with the pendent symbols for identifying the fibres used for EP (to avoid the conciliation procedure) will not strong- • Warning labels with regard to the flammability performance of Textile the manufacture of a tex- ly water-down their principles. and Clothing products, tile product • EURATEX is of the view that the scope of the pro- • Any potentially allergenic or hazardous substances used in the manu- posed regulation should not be extended to other facture or processing of textile products labelling requirements or to other provisions that • Any potential allergic reactions due to synthetic fibres, colourings, bi- effectively fall outside of that scope. This regulation ocides, preservatives or nano-particles used in textile products should only favour the development and the uptake of new fibres with a view of encouraging innovation

9 Activities of the year 2010

in the textile and clothing industry and allow fibre us- en the relations between the EU-27 and the Balkan ers and consumers to benefit faster from innovative area2 in coherence with the 2009 Euratex advocacy products. for a more rapid integration of the Balkan states in the Mediterranean region. • EURATEX is of the view that the new suggested provisions may end in over-regulating our industry Euratex attended several events organised by its mem- while controls in the market will not be at the level bers in Bulgaria and Romania to support the strength- they should be, not solving the objectives pursued ening of the existing industrial base and to ensure a by the legislator and increasing the burden on our better presence of the sector in the new EU “Strategy companies. for the Danube Region”3 developed by the States under the coordination of the EU Commission. Such long • EURATEX considers that a debate on the topics term strategy was proposed in December 2010 to the ciations in the South and Western Balkan region in or- identified by the EP cannot be avoided, but this EU Council and aims at improving the economic, so- der to better react to the opportunities and difficulties should be done in separate instances to avoid mix- cial, environment and infrastructure development of generated by access to the EU. In this context Euratex ing arguments while considering the existence of EU the countries and regions along the Danube. The im- submitted a project for increasing and developing the Regulations in certain fields. portance of the Textile and Clothing industry for the re- competences and governance of the national textile & gion is obvious but the local and national associations clothing associations’ permanent staff and for better 3. The Euro-Mediterranean will have to battle to ensure that enough attention will integrating them in an international network of asso- dimension of the Industrial be given to this industry that is key for the regional and ciations. Thanks to Euratex experience (see table) and policy: a focus on gender development of the Danube region. the support of the local partners, the Tex-Web project the Balkan region was accepted by the Commission and started end of Moreover Euratex continued its work of strengthening the year for a two years duration - more information in The Euro-Mediterranean region accounts for a major and supporting the local textile clothing national asso- the Project part of this report. share of European textile and clothing exports hence Euratex focus on this area that received a new political To complement such activities Euratex was invited to impetus and dimension through its integration into the 2 Albania, Bosnia and Herzegovina, Macedonia, Serbia, (Ko- travel around Albania, Macedonia and Serbia to pre- sovo), Bulgaria, Croatia and Romania EU Neighbouring Policy. In 2010 Euratex looked more 3 http://ec.europa.eu/regional_policy/cooperation/danube/ sent to local actors in the industry an outline for a local/ in depth on the opportunity to enhance and strength- index_en.htm European strategy of development to better integrate

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Euratex engagement with the Central and South Eastern countries of Europe 2000-2010 the region in the Mediterranean area while promoting Program Project Period European Sectors Beneficiary the values and benefits of the social dialogue. partners countries

In parallel the discussion with the other Mediterrane- BSP ° PARTEX & 2000-2002 Euratex, Textile & Clothing Poland, Lithuania, an countries is intertwined with much higher political I & II SEETEX Finland and Estonia, Czech shaped approaches like the Union for the Mediterra- Spain Republic, Hungary nean region or the outcome of the early 2011 turmoil National Romania, Slovakia, in the region. Euratex will remain vigilant to avoid wa- Associa- Slovenia tering-down the benefit of this region for the EU com- tions panies active in this industry. It is unclear what the EC Commission will promote in 2011-2012 but Euratex Perfect-link 2003-2005 Euratex + Textile & Clothing; Poland, Lithuania, will participate actively into those events or activities Cotance Leather Estonia, Czech where the Mediterranean industry would like to have Republic, Hungary, a more active transfer of activities to their countries, Romania, Slovakia, something which remains an exclusive decision from Slovenia, Latvia, companies. Bulgaria

• Euratex remains committed to make the Euro-Medi- BSP III SEETAL 2008-2009 Euratex + Textile & Clothing; Bulgaria, Croatia, terranean the cornerstone to the future development Cotance Leather Romania & Turkey of the EU textile and clothing industry. In this context, IPA °° Tex-Web 2011-2012 Euratex Textile & Clothing Albania, Bosnia Euratex together with EU authorities should explore and Herzegovina, and enhance the development of cooperation pro- Macedonia, Serbia, jects aimed at developing joint investments in T&C. (Kosovo), Bulgaria, Croatia

° BSP Business Support Programme; °° IPA Socio-Economic Partnership Programme

11 Activities of the year 2010

Trade Luisa SANTOS

1. Revision of Euratex Summary: 2010 was a year of world recovery, in the form of a Waiver still pending approval in WTO. Industrial and Trade Policy more visible in the emerging economies, after the Bilateral Trade Negotiations were once more extremely difficult economic and financial crisis of central in our Trade actions with some Agreements In order to respond more efficiently to a changing 2008-2009. The recovery was also felt in our sec- being concluded- Central America and Andean- business and competitive environment in the T&C In- tor with an uptake in world production and trade. others being launched- Singapore and Malaysia- dustry, Euratex launched an internal revision of its In- This activity improvement led, in the second half of and others with continuing negotiations- Canada dustrial and Trade Policy. Two Working Groups- Trade 2010, to increased pressure in raw materials and and India. Korea FTA implementation and the re- Policy and Competitive Environment- were created to semi-finished products prices. The restrictive meas- launching of Mercosul negotiations were also un- give inputs for a document which was later circulated ures on Exports taken by some countries- India and der our radar screen. Other issues in the spotlight among all members. After a large internal debate the Pakistan- have created further disturbances in the were Made In, Rules of Origin-Printing on the final document was approved in the General Assembly markets generating availability problems and fa- Selvedge, GSP and Euromed- and Market Ac- of June 2010. Some of our Priorities: (1) Attain new vouring speculation. In parallel there were some ini- cess. In parallel the Commission revised its Trade markets and develop new business opportunities; (2) tiatives aiming at suspending tariffs for some textile Policy and launched the consultation procedures Promote a better and wider access to high quality T&C materials and semi-finished products to which Eura- for the new GSP Regime. To note as well the two products at competitive prices by removing all tariff tex strongly opposed. High on our agenda was also initiatives from the Commission directed to our and non-tariff barriers, especially in emerging mar- the revision of Euratex Industrial and Trade Pol- sector- Workshops on the T&C Industry after full kets; (3) Guarantee access to Raw materials and Pub- icy to adjust it to the changes in the T&C business liberalisation and on Technical Textiles. Finally lic Procurement Markets; (4) Further integration and and competitive environment. Trade Preferences Euratex increased cooperation with other business development of the Paneuromed area; (5) Ensure a to Pakistan were once again on the table first in the organizations in key strategic markets- China, Tai- competitive environment in the EU which is conducive form of GSP+ status- repealed due to the combined wan- as well as in the EU. to business covering finance, innovation and creativ- efforts of Euratex and its members- and afterwards ity, sustainability, training and knowledge promotion; (6) Improve coordination between different EU policies and actions with an impact on the overall business environment of T&C companies; (7) Ensure that Inno- vative and Creative activities are nurtured and legally sheltered in Europe.

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2. Pakistan EU T&C companies and their workers;(e) the Due to our opposition and that of some Member States negative effects would also impact our prefer- the initiative was blocked. Once more Pakistan requested preferential access to ential partners, in particular Turkey, and might Later in the year the activity recovery led by emerg- the EU market. In a first stance the justification for the jeopardize ongoing trade negotiations with India. ing economies put additional pressure in the Raw concessions were the efforts done by Pakistan in the Considering the Waiver needs an agreement from all Materials Market. The problem was aggravated by war against terrorism and they would be granted by WTO members the opposition and strong reservations the restrictive measures implemented by some lead- revising the GSP+ vulnerability threshold. Backed by of some countries- India, Bangladesh, Peru, Vietnam, ing world producers-India imposing quotas on Cotton economic arguments-impact assessment of the Brazil- have managed so far to prevent its approval Fibre and Cotton Yarn and Pakistan imposing Export concessions in the EU T&C Industry- Euratex, its and subsequent implementation. Duties on Cotton Yarn. This situation led to availability members and DG Enterprise managed to repeal the problems and steep price increases in a relatively short proposal. Unfortunately the terrible floods in Pakistan, 3. Raw Materials period of time. Euratex with the member’s assistance later in the year, prompt some Member States and the Commission to propose once again preferential ac- This issue was a high priority for Euratex in 2010. In the cess to the EU market. After considering several pos- beginning due to an initiative started by Italy that, under sibilities the Waiver was the selected option with a con- the context of Access to Raw Materials, asked in fact for siderable number of T&C products included. Although a Tariff Suspension for certain Products. The objective a major export product of Pakistan- bed linen- was was to allow EU Industry to have improved access -duty excluded. Euratex once more expressed its opposition free- to certain products which were essential but no arguing that: (a) trade concessions were not the longer produced in Europe. Initially the scope was limited best way to assist Pakistan facing the humani- in our sector (only Silk Yarn) but it soon assumed a whole tarian tragedy; (b) humanitarian and financial as- different nature with an enlarged product list covering a sistance were preferable instruments to help the range of Textile Semi-Finished Products still produced in affected populations; (c) Pakistan T&C Industry the EU. Euratex strongly opposed the measure based on was not located in the flooded areas and thus economic grounds- the products in the list were still it was not affected by the catastrophe; (d) any produced in the EU and the elimination of Tariffs trade concessions would only serve a restricted would not be overall beneficial for the Industry- and number of very competitive and highly perform- on technical and legal grounds- the specific procedure ing T&C companies in Pakistan in detriment of to deal with Tariff Suspensions was not followed.

13 Activities of the year 2010

started to closely monitor the market and engaged and effective way; (d) Industry should have the • Central America actively in trying to solve the Export Restrictions, in- possibility to launch the safeguard procedures. The Agreement with Central America (Costa Rica, volving the Commission and Member States in these Euratex requested that the SIGL system should be Guatemala, Honduras, El Salvador, Nicaragua and actions. In parallel Euratex participated in the Public used for the Derogation Quotas but the Commis- Panama) was also finalized in 2010. As it was the Consultation on the Raw Materials Initiative led by DG sion insisted on the First Come First Served System case with Andean Countries, Central American coun- Enterprise giving the preliminary views of the sector in handled by DG Taxud. For the rest Euratex demands tries had already duty free access to the EU market. this important topic. were taken on board and the Implementation Pack- Moreover these countries are LDCs and for this rea- age along with the Agreement were approved by the son they have requested from the EU to be given the 4. Bilateral Trade Council and the EP at the end of 2010. This means same treatment as ACP countries in the critical issue Negotiations the agreement will be applied provisionally as of of Rules of Origin. This meant that from the beginning the 1rst July 2011. Central America requested for Single Transformation This remained a major topic in Euratex Trade Agenda for Clothing. Euratex always opposed this request since the number of FTAs under negotiation increased • Andean FTA- Peru and Colombia which at a later stage was presented under a quota. with the inclusion of Singapore and Malaysia and the This Agreement was concluded in 2010. In practice Finally and due to our efforts and that of our members re-launch of Mercosul. Some agreements were also there are two agreements since the conditions are we have managed to limit derogations to 90 million concluded in 2010- Andean and Central America. not exactly the same for both countries. This is par- pieces spread across knitted and woven garments ticularly the case for Market Access. Since both coun- and a fixed quota of 15 million pairs for socks- initially • South Korea FTA tries benefitted already from Duty Free access to the their request was for a derogation 240 million pieces Most of the discussions were centred in the so-called EU market, under the GSP, our negotiation leverage and no limit for socks. “Implementation Package” of the Agreement since was reduced. However we have managed to obtain, this was critical to obtain the approval from some from Peru, duty free access from the entry into force • India FTA Member States and also from the European Parlia- of the Agreement for almost all T&C products. Co- The negotiations progressed well in 2010 and it seems ment. Euratex gave the input from our sector signal- lombia had a more defensive approach- more prod- India is willing to open the market in our sector. Re- ling the critical issues: (a) Monitoring of Imports ucts under longer transitional periods- but the overall garding Market Access, after hard discussions, India especially for products under Rules of Origin package can be considered as positive. We could not accepted to include all T&C products in the negotia- Derogation; (b) Industry should have access to avoid exceptions/derogation on Rules of Origin- under tions and to abandon the negative list approach. Eur- the data on Imports and quota utilization; (c) a quota- but these are circumscribed to some tariff atex updated the List of Priority Products, for which possibility to use a Safeguard Clause in a swift lines, mainly knitting products. we would like to have duty free access from day one,

14 Annual report

and we have asked also for short dismantling periods- and Enforcement or Access to Public Procurement the 5. Made In not longer than 5 years. Moreover, considering the steps forward were also minor. competitive strength of Indian T&C Industry, Euratex This topic was once more on the table since the Com- insisted that full reciprocity and symmetry should be • Mercosul FTA mission revived the 2005 Regulation by consulting observed. At the end of 2010 the discussions were The re-launching of negotiations with Mercosul is Member States on possibilities to overcome the im- only around a small list of products for which India was very positive considering the export potential of this passe of 2005 through an Options Paper and later by asking longer dismantling periods-7 years- and an region, in particular Brazil. Euratex strongly supports sending to the European Parliament the draft Regu- asymmetrical treatment. Other major concerns were these negotiations which were immediately under fire lation of 2005 with no changes. Euratex conveyed the Export Restrictions on Cotton and Cotton Yarn (at from the Agriculture sector. No offer was exchanged in several meetings to try to reach a common position the end of 2010) which created important market dis- 2010 but Euratex had some contacts with the Brazil- from the Industry in this matter. Unfortunately the divi- ruptions. Euratex insisted to have the existing restric- ian Industry and the major problems in our sector were sions of 2005 were even more evident in 2010 and tions lifted within the FTA negotiations and to negoti- already identified- Rules of Origin (Mercosul wants it was impossible to attain a compromise position ate strict provisions in the Agreement text to prevent Triple Transformation) and on Tariffs it remains to be among Euratex members which prevented Euratex similar actions from occurring in future. Other issues seen if Mercosul is prepared to dismantle the high du- from expressing an official position. Following a Re- still pending are: Rules of Origin, Additional Duties, Ac- ties-35% for finished products- in a reasonable period port by Italian MEP Cristiana Muscardini proposing cess to Public Procurement, NTBs and FDI restrictions of time. some Amendments to the 2005 Regulation, the Euro- in Retail. pean Parliament decided to vote in favour of a manda- • Singapore and Malaysia FTAs tory “Made In” for all End Consumer Goods except • Canada FTA These negotiations were launched in 2010 and in the for those originating in the EU, EEA and Turkey. The Although with a promising start very soon these nego- case of Malaysia not much progress was done during Regulation with the Amendments was later transferred tiations turned into a deadlock in our sector. Canada the year. As for Singapore and as it was expected the to the Council for approval. The discussions among is taking a strong stance in T&C refusing to negoti- main problem is on Rules of Origin. Since the country Member States are ongoing with a clear division in the ate Tariffs until a compromise is reached in Rules of is a logistic hub with almost no industrial production 27 countries and a majority opposing the “Made In”. Origin. Regarding Rules of Origin Canada demands they have requested for very flexible horizontal rules In parallel the “Made In” discussions were extended Single Transformation and is unwilling to compromise. with a low value added threshold. Euratex opposed to the “Textile Names” Regulation with some MEPs This negotiating position of Canada is unacceptable this proposal which was also refused by other Indus- requesting to have this information as mandatory in for Euratex and the progress in 2010 was inexistent. trial Sectors. the label. Euratex always defended that the two sub- On other important topics for us like IPR Protection jects should be treated separately as the risk of having

15 Activities of the year 2010

the Textile Names Regulation blocked because of the vention negotiations. Several meetings were held to 7. Trade Policy Revision “Made In” issue was high. discuss the issue and from the discussions it emerged that there are different views on the matter within Eur- The Commission has decided to revise its Trade Pol- 6. Rules of Origin atex. Some members request to go further than the icy in 2010 building on the Global Europe Agenda. GSP Compromise and they have presented a whole Euratex presented its official position on the Future This topic was central in Euratex Trade activities in different approach, others accept the GSP compro- Trade Policy focusing on: (1) Bilateral Negotia- 2010 for several reasons: (a) Rules of Origin are key mise and others are against any change in the rules or tions-FTAs and what conditions should be followed in FTA negotiations and in most cases our trade part- they are conditioning such a change to a solution for in selecting the potential partners, negotiating Tar- ners do not share our positions in this subject and as the Printing Rule. iff and Non-Tariff Barriers and other relevant issues a consequence we end up with derogations; (b) Eura- GSP Rules of Origin- the new GSP Rules of Origin like IPR, Public Procurement, Investment or Access tex started the internal work to revise the Paneuromed were finally approved. The new Rules have entered to Raw Materials;(2) Market Access Partnership Rules of Origin; (c) The new Rules of Origin for GSP into force the 1/01/2011 with the exception of the REX needs to be strengthen, taking into account increas- were finally approved; (d) The Commission issued a system which will not be immediately applied - transi- ing problems in NTBs-Standards and Certification, more flexible interpretation of the Printing Rule. tional period from 1/01/2017 until 1/01/2020. Over- Access to Raw Materials or “Buy National” Policies; Rules of Origin in FTAs- Euratex is trying to safeguard all the Euratex compromise proposal was retained in (3) GSP has to be limited to Developing Countries, that Double Transformation Rule prevails in all FTA the new rules for the normal GSP countries. However thus completely excluding big players like India or Agreements. This task is not easy as our negotiat- Commission and Member States have decided to Brazil, taking into consideration the specificities of the ing partners try also to impose their rules according agree on more flexible rules for LDCs. T&C sector and the different levels of development to their own industrial reality and established supply Printing Rule/Printing on the Selvedge: following a new in our sector-Graduation mechanism complemented chains. The final compromise usually foresees some Commission interpretation of the Printing Rule, recog- with other aspects like Export Duties and barriers to derogation but overall and so far the back bone is still nizing Printing on the Selvedge, and a subsequent Access Raw Materials, Public Subsidies, etc; (4) Pa- double transformation. meeting of the Customs Committee it became clear neuromed needs to be developed through further Paneuromed Rules of Origin- we have started the in- the existence of a division among Member States on integration and common and harmonized Rules of ternal work to revise the Paneuromed Rules of Origin which interpretation of the Printing Rule should be ap- Origin. In this framework Euratex met Trade Commis- taking as a basis the GSP Compromise. Our objec- plied- the stricter or the more flexible one. As a con- sioner Karel De Gucht (September) to highlight these tive is to reach a compromise solution among Eura- sequence and in practical terms Member States are points and also to discuss the envisaged Trade Con- tex members to be sent to EU Commission and later allowed to apply the Printing Rule according to their cessions to Pakistan. adopted as the EU proposal for our sector in the Con- interpretation.

16 Annual report

sition in broad terms is: (a) inclusion of new criteria in Access to Raw Materials: restrictions imposed by In- the Graduation Mechanism and the GSP+ to cover dia on Raw Cotton and later on Cotton Yarns Exports sensitive topics like- access to raw materials, trade fa- and by Pakistan on Cotton Yarn (Export Duties); (d) cilitation measures, protection and enforcement of IP Argentina Import Licence System- use the Mercosul Rights and FDI safeguard; (b) standstill in the remain- FTA negotiations to solve the problem since all ac- ing GSP conditions including the graduation and vul- tions taken so far had no positive results; (e) China- nerability thresholds; (c) improved monitoring of Good Standards and Consumer Protection legislation: this Governance and Sustainable Development conditions remains an important problem and one of the major in GSP+. barriers T&C exporters are facing in the Chinese market 9. Market Access Strategy 10. Commission events Commissioner Karel De Gucht Market Access remained one of the major pillars in on T&C & President Peter Pfneisl Euratex Trade Agenda. In this context several meetings of the T&C Market Access WG were organized • Workshop on T&C Industry after full liberalization: 8. GSP Revision and we continued to follow on a daily basis the prob- DG Trade invited Euratex, some of its members and lems reported by members and their companies. We the Retailers to a working meeting with the purpose There was an extensive discussion on the GSP roll have focused particularly: (a) Turkey- Import Regis- of evaluating the Industry situation after full liberaliza- over- extension of the current GSP until the new tration a meeting was organized in Istanbul between tion, future prospects and possible impact on Trade Regime enters into force- because the Commission the Commission, the Turkish Authorities, Euratex and Policy. wanted to change the GSP+ Vulnerability threshold Itkib. Euratex requested for the system to be with- • Meeting on Technical Textiles: during the Belgian from 1% to 1,5% in order to benefit Pakistan. This drawn and although this was not obtained there was Presidency of the EU a meeting was organized by initial DG Trade proposal was withdrawn due to our an engagement from Turkish Authorities to improve DG Trade and Euratex with the support of its mem- efforts and those of DG Enterprise and the final Roll the system, make it less costly, more flexible and less bers (Fedustria, UIT and GTMI) to discuss the main over proposal introduces no changes in the existing time consuming for EU exporters. (b) CPSIA-USA the problems faced by Technical Textiles companies legal framework which will be in place until 31rst De- way the legislation is being implemented, the tests when accessing Third Markets. During the meeting cember 2013 or until the new Regime is approved. and compliance measures demanded from EU Ex- two companies operating in the area of Technical Regarding the future GSP Regime Euratex official po- porters- particular emphasis on Silk Flammability; (c) Textiles gave testimony of their main problems and

17 Activities of the year 2010

how Trade Policy could assist in creating an environ- Meetings were also held with the two organizations 12. Relations with EU ment which is conducive to business. representing Chinese T&C Industry CNTAC- China Institutions and other National Textile and Apparel Council and CCCT- business organizations 11. International Cooperation China Chamber of Commerce for Import & Ex- port of Textiles to discuss the market situation, major Euratex deployed considerable efforts in reinforcing Euratex reinforced the relations and cooperation with barriers in the markets and areas of possible coopera- its relations with EU Institutions, in particular the Eu- organizations representing T&C Industry in impor- tion. Taking into account the importance of China and ropean Parliament which now plays a decisive role tant emerging markets. In this context we have held the surrounding area in T&C trade Euratex has signed in Trade Policy. Several meetings were held with the meetings with Kofoti- Korea Federation of Textile MOUs with the two above mentioned Chinese organi- President of the INTA- International Trade Committee, Industries to exchange information on the market, zations representing T&C Industry(CNTAC signed al- Prof. Vital Moreira, and also with other MEPs accord- Trade Policy and Environment and also with Abit- As- ready in 2011)- and also with our Taiwanese counter- ing to the subject of interest. Regarding Council/Mem- sociação Brasileira da Indústria Têxtil in the fringe part TTF- Taiwan Textile Federation. ber States Euratex was invited by both the Spanish of the Mercosul FTA negotiations to exchange views and the Belgium Presidency to make Presentations in on the Agreement. the STIS-Trade Policy Committee regarding the situation in the T&C sector and our expectations in terms of Trade Policy. Concerning the Commission we have strengthen our relations with the DGs more directly involved in Trade and Industry matters- DG Trade, DG Enterprise and DG Taxud. We have also increased cooperation with other business organizations through an active engagement in common positions and initiatives, in particular Businesseurope and ACEI- Alliance for a Competitive Industry.

18 ◄ President Peter PFNEISL in Taipei Annual report

European Research and Innovation Policies Lutz WALTER & Mauro SCALIA

The year 2010 was again a year full of opportunities include (1) an integrated policy approach encompass- for textile research in the EU 7th Framework Pro- ing research and innovation, (2) a stronger alignment gramme (FP7). Thanks to inputs provided by the Eu- of priorities and funds along Grand Societal Chal- ropean Technology Platform in earlier years, the FP7 lenges (3) more joint programming and funding by EC calls in July 2010 contained several highly relevant re- and member states, (4) a significant attempt to sim- search topics for the textile and clothing sector. Sup- plify and speed up administrative procedures. During ported by the TEPPIES system and two project bro- the first half of 2011 the Commission will seek input kerage events hosted by Euratex, some 40-50 project from stakeholders before defining the upcoming re- proposals from the textile research community were search and innovation programmes in more detail. For submitted in late 2010 to the various thematic pro- this purpose a number of public consultations will be grammes. While some projects were already accepted launched in which Euratex will participate actively to for EU funding at the beginning of 2011, many others make sure the voice of the textile and clothing indus- were still awaiting their evaluation results or were in try is heard. A position paper on the sector’s views some cases preparing for a second stage evaluation procedure. Hopefully some 10 to 15 new projects with Another strategically even more important work of a total EU funding of over € 30 million will start in the Euratex in 2010 concerned the monitoring and input coming months as result of the 2010 FP7 calls. provision for the development of the EU research and A new round of FP7 calls is expected again in July innovation policies and related programmes for the 2011. While the full details of the call topics are not 2013-2020 period. This process started when the EC yet known, first indications point to somewhat less rel- published the Europe 2020 strategy in early 2010 evant priorities for the textile sector this year, especially and was followed up more specifically by the Com- compared to the excellent year 2010. Euratex and the mission’s October 2010 communication on the flag- European Technology Platform will work again with the ship initiative Innovation Union. This document for European Commission to ensure a richer opportunity the first time laid out the main lines of the EU’s future set for textile research in 2012. research and innovation policies. Important elements

19 Activities of the year 2010

towards the new EU research and innovation framework programme will be developed together with the The Governing Council of the platform welcomed 5 new members during 2010 and now has the follow- textile research community represented by Textranet ing composition: and AUTEX. Name Organisation 1. The European Technology Platform: CANONICO, Paolo Saati, Italy CHERIF, Chokri Autex, EU The European Technology Platform for the Future of COSTA, Braz Textranet, EU Textiles and Clothing remains the flagship initiative of HENDRIKS, Dick (Chairman) Ten Cate Group, Netherlands our sector in the field of research and innovation at Euro- pean level. Also in 2010 the Technology Platform made HEREU, Angel Antex, Spain significant progress on all its strategic objectives. JAKUBIAK, Piotr Dywilan, Poland JOHANSSON, Fredrik FOV Fabrics, Sweden The implementation of the Strategic Research Agenda (SRA) progressed with the launch or prepa- MARCHI, Francesco Euratex, EU ration for launch in early 2011 of some 10 new FP7 MARCHI, Massimo (Vice-Chairman) Marchi & Fildi, Italy projects. These projects concerned mainly new manu- PINHEIRO, Manuel Tinamar, Portugal SEZEN, Mutlu Korteks, Turkey (CIRFS)

ŞIŞMAN, Ahmet Hassan Group, Turkey TANKERE, Jacques MDB Texinov, France Van TRIMPONT, Pierre Desso, Belgium WERDIN, Ernst Rupprecht Textile Engineering, Germany LIBEERT, Filiep Honorary Founder Member of the Governing Council

20 Annual report

facturing systems or product development concepts During 2010 the CrossTexNet project, the first textile- start in the first half of 2011. In order to demonstrate to for technical textiles and fibre-based composites, new dedicated ERA-Net project which brings together 17 the Commission that there is a great need to pay more concepts for manufacturing customised clothing and national or regional public research funding authorities attention to research priorities of Europe’s design-based fashion products for special needs groups and the col- from 11 European countries for joint support of cross- consumer goods sector, the textile platform together laboration of different European technology platforms. border projects, launched its first call for proposals. with homologues in the footwear and sport goods in- At the same time many of the early FP7 textile projects The call met significant demand with over 50 first dustries staged a successful conference entitled “De- progressed towards intermediate or final project re- stage proposals being submitted. Towards the end of signed to surprise” in February 2010 in Brussels. The sults. As a consequence the Technology Platform will 2010 12 projects were selected for funding worth a to- event attended by some 130 participants showed clear- intensify its effort to organise collective dissemination tal of over € 10 million. The next call is being launched ly that these relatively fragmented and SME-dominated for these projects to bring their results faster to indus- in the first quarter of 2011. More information about this sectors (together with wood-based, ceramics, glass and try. This will take the form of a number of collective project is available at www.crosstexnet.eu. other consumer goods manufacturers), jointly represent exhibits at industry events during 2011 such as the an important contributor to Europe’s manufacturing em- Techtextil-Texprocess fair in Frankfurt or the ITMA In order to further increase the political clout of the tex- ployment and added value by innovating and investing fair in Barcelona. In addition the Technology Platform tile platform and the broaden the access to funding op- constantly in new products, processes, technologies or will support a number of joint print and electronic pub- portunities across many parts of FP7, the collaboration business concepts. A first draft research and innovation lications which should be widely distributed to industry. work with related European Technology Platforms was roadmap was presented at this conference and a much further intensified in 2010. Of the 3 new projects ap- more in depth work on this subject will be undertaken by proved in early 2010 to support cross-platform collabo- the PROsumer.NET project. ration in areas of relevance for the textile sector, only the NanoFutures project started in late 2010. The textile platforms made some first inputs on the needs of the textile industry in the field of nanotechnology research. More information about this project is available at www. nanofutures.eu. The other 2 projects PROsumer. NET (collaboration in the field of consumer goods research, coordinated by Euratex) and Building-UP (collaboration of platforms related to construction research) faced administrative delays and are now expected to

21 Activities of the year 2010

presented the work of the BioTex initiative at a high-level political event organised by EuropaBio, the European biotechnology industry association in Bussels. Following first contacts established with the European Advanced Materials Platform (EuMaT) in 2009, a wider initiative entitled Alliance4Materials was launched in ▲ Representatives of the footwear, ceramics, late 2010 in which the textile platform joined 5 other textile, forest-based and sports goods sectors materials-related platforms to lobby for the mainte- at the Consumer Goods Research Conference nance of a strong materials research component in the in February 2010. future Framework Programme. Following the very positive results of the ManuTex col- Other technology platform collaborations which pro- laboration between the textile/clothing and machinery ▲ The Presidents of Cematex & Euratex sign gressed independently of EU funding include BioTex sectors, EURATEX and CEMATEX, the European the MoU in December 2010. for which a workshop on industrial application of bio- textile machinery manufacturers association, signed technology in the textile industry and a subsequent in- a memorandum of understanding for even closer The 5th Annual Public Conference in April 2010 was formation session for the European Commission was cooperation in the fields of research, innovation and again a great success with some 150 participants. The organised in October in Brussels. In December Euratex industry image promotion at a ceremony held in Brus- event was dedicated to highlighting the important na- sels in December 2010. One of the first concrete ac- tional and regional dimension of textile research and tions will be set-up of a European textile research pa- innovation by showcasing the activities of over 20 na- vilion at the ITMA textile machinery fair in Barcelona tional and regional clusters and platforms from across in September 2011. More than 30 European textile Europe. This event made it clear that the activities of research organisations and some EU projects are ex- the technology platform at European level represent pected to join this showcase facilitated by the Euro- just the tip of the iceberg with a very sound founda- pean Technology Platform and strongly supported by tion at the national and regional level. It was especially CEMATEX, the owner of the ITMA fair. interesting to note the very recent emergence of textile innovation clusters and platforms in the newer EU ◄ Lutz WALTER addresses the European Biotech member states such as the Czech Republic or Hun- event in December 2010. gary as well as the re-emergence of very proactive,

22 Annual report

of this event, 2 years after the first such conference input to highlight the many positive effects this ini- took place in Hengelo, Netherlands in late 2008, Eur- tiative had on the industry and research community atex and the Technology Platform joined forces with concerned. a number of eminent representative organisations of the European PPE value chain and its research com- The above points provide only a small snapshot of the munity, namely ETSA – the European Textile Services various activities and results of the work of the Euro- Association, ESF – the European Safety Federation, pean Technology Platform in the year 2010. More in- the European Technology Platform on Industrial Safe- formation is available on the platform’s public website ty and Centexbel, the Belgian textile research insti- (www.textile-platform.eu) and the internal commu- tute. Extensive information about this event including nication platform of registered experts which contains the full set of conference presentations (at a modest among other things an expert and project database ▲ Audience of the 5th Annual ETP conference cost) are available at the conference website www. and a document library will all relevant meeting and in April 2010. ppeconference2011.eu In the first half of 2011 the other documents. Commission is scheduled to complete its final review strongly industry-driven clusters in countries which after 3 years of pilot actions under the EU Lead Mar- had before witnessed major restructurings of tradi- ket Initiative and Euratex will provide the necessary tional textile research infrastructures such as France, the UK or Sweden. The conference was jointly organised with the CrossTexNet project which held its first European-wide dissemination event in the afternoon of the second conference day.

Significant work under theEuropean Lead Market Initiative for Protective Textiles and Clothing was dedicated to the organisation of the 2nd PPE Lead Market Conference which eventually took place with great success and more than 220 participants in the first weeks of 2011 in Brussels. For the organisation

23 Activities of the year 2010

2. Projects Encouraged by the promising results in 2010 eBIZ presented its results in 8 events in Italy, Hungary, Bel- • eBIZ-TCF - Helping Fashion businesses gium, Portugal, Spain and France. going on-line The term e-Business Moving from the eBIZ success to a “single electronic relates to the electronic language in the fashion supply chain” in 2011 the eBIZ exchange of data and partners will consider actions in cooperation with CEN documents among (the European Centre for Standardisation) to upgrade companies in a sup- results into a de-facto standard. ply chain. This allows transaction, and espe- enabled e-Business communication between different More information www.ebiz-tcf.eu or look for eBIZ- cially processing of or- companies of the supply chain. The result has been TCF on Youtube. ders, electronically with reduced human intervention, successfully tested in real business operation quickly and error-free, and thus brings significant time among 180 European companies (ICT, manufac- • InnoWater and cost advantages to companies. In the Fashion turers and retailers) in 20 European countries. This project led supply chains (Textile, Clothing and Footwear) e- by the European Business is relatively little used for several reasons, Water Partner- particularly: lack of communication standards, use of ship to promote non-compatible systems and predominance of SMEs the application with limited financial and technical resources. of innovative water technologies To harmonise the use of e-Business and thereby boost across a range of manufacturing sectors including the e-Business in the Fashion industry, the eBIZ-TCF pro- textile industry started in February 2010. The main ac- ject was successfully completed in 2010. tivity of Euratex during the first year was the organisation of a workshop on industrial water management Launched by the European Commission DG Enter- challenges and current solutions in the European prise and Industry and coordinated by EURATEX, textile industry. Textile water experts from Belgium, eBIZ has delivered a Reference Architecture that Czech Republic, Germany, Italy, Poland and Romania

24 Annual report

presented the current situation and trends in their respective countries and discussed with the InnoWater partners how the project could help stimulating the adoption of innovative water technologies in the textile industry. During the second half of 2011 and early 2012 a number of national roadshow events will be and knowledge transfer. The project concept is similar organised in these countries. More information is avail- to predecessor projects such as SEETAL or Perfect- able at www.europe-innova.eu/innowater. Link and involves textile and clothing industry associations from Albania, Bulgaria, Croatia, Macedonia, • NuWave Serbia as well as Kosovo as associated partner. The This project brings together project contract started on 1st December 2010. The European and national as- kick-off meeting took place on 25-26 January 2011 sociations for textiles & in Brussels. First project tasks in 2011 will include a clothing and textile machin- industry survey among the federation’s member com- ery to support the design panies to better understand the trends and needs of of a new generation of flex- the textile and clothing sector in these countries and ible and high-performance textile machines. NuWave the most relevant services that the federations could completed an important part of its research work in provide. This will be followed by the organisation of a 2010, the 2nd of 3 project years. In addition to the series of specialised seminars on major aspects of the research work, the project also supports the further EU legal framework affecting our industry and compa- implementation of the ManuTex initiative. More infor- nies in these countries seeking stronger links to the EU mation is available at www.nu-wave.eu single market. More information about the project is available at: • TEX-WEB www.tex-web.eu The objective of this new 2-year project, co-funded by the European Commission’s IPA Programme, is to support textile & clothing industry associations in the Western Balkan countries through capacity building ▲ Tex-WeB kick-off meeting in Brussels - January 2011

25 Activities of the year 2010

Economic reports

and statistics Roberta ADINOLFI

Euratex participated to the annual EUROSTAT-FEBI 1. EC Policy in (European Sectoral Associations) and made known the Statistical field that Eurostat decision to temporarily suspend this annual meeting will clearly jeopardize the Industry Busi- On policy area, Euratex insisted, together with some mem- ness Associations’ opportunity to influence the sta- bers of the Alliance and other European trade organisa- tistics process with the risk also of losing important tions, on a clarification of some aspects of the new Com- information on the future development/simplification of mission guidelines on the applicability of Article 101 EU statistics, legislation and classifications. to horizontal co-operation agreements - Competi- tive assessment of information exchange. Indeed, 2. Economic & Statistical Euratex and the Alliance members had been concerned reports ports during the January-December 2010 period. The with the draft version of the revised guidelines and decid- aim of this short report, which is published on a quar- ed to issue a joint position paper to express their strong re- Beside the lobbying activities, the economic & statistics terly basis, is to better monitor the economic situation of serves. This initiative proved to be successful as the HOR department provided Members and other departments the European T&C industry throughout the year. rules have been clarified by DG Competition. of Euratex with economic and statistical reports to Furthermore, Euratex continued to follow the Com- support various files, for instance: Members subscrip- In addition to the short-term statistical reports, Euratex mission’s work on the introduction of simplification tions’ rules, commercial policy matters - and more par- issued the 2009 structural data computed by Eura- measures in the Community statistical field, ticularly that on the Rules of Origin, the General System tex using Members contributions. Those figures cover which is planned to go on with MEETS programme of Preferences, FTA negotiations, Barriers to Trade, as variables for the EU-27 and the other countries mem- (modernisation and integration of enterprise and trade well as Third countries trade monitoring. bers of Euratex. An estimation of the 2010 structural statistics) covering the 2008-2013 period. This pro- Within the framework of its regular analysis on the data for the EU-27 Textile and Clothing industry can be gramme is supposed to help to adapt business statis- economic climate of the Textiles and Clothing in- found on the last page of this annual report. tics to new needs and at the same time help to adjust dustry, Euratex released the “Statistics in Focus” pub- the production system of statistics to reduce the bur- lications which analyses the evolution of EU production, In addition, the economic & statistics department also den on business. employment, new orders, retail sales, imports and ex- published a series of bulletins in 2010:

26 Annual report

• Bulletin n° 01/2010 provides detailed reports of the • Bulletin n° 04/2010 (to be issued in May) gives an in- industry, its future prospects and key strategic challeng- Economic situation in the Textile and Clothing Indus- sight into the General Economic Situation in 2009 as es facing our companies that need to be addressed by try in 2009 as well as prospects for 2010 - These well as short terms prospects for 2010. It includes policy makers at European, national and regional levels. reports are written by Associations present in each EU consolidated changes, trade estimates and ba- EU-27 Member states, Bangladesh, Belarus, Bra- sic structural data (production index, production The reason for this study is the October 2010 EU Com- zil, Croatia, Egypt, India, Indonesia, Israel, Japan, prices, turnover, investments, household consump- mission Communication on “An integrated industrial Korea, Macedonia, Mexico, Norway, Serbia, Swit- tion, retail trade and consumer prices). policy for the globalisation era” in which the T&C indus- zerland, South Africa, Taiwan, Thailand, Turkey and try is the sole sector that would benefit from a specific USA. 3. EC Project Communication on key aspects of the competitiveness of the fashion industry, foreseen by end 2012. This is a • Bulletin n° 02/2010 includes, under part A, an anal- A Commission tender, relating to a study on the “assess- quite remarkable achievement and an opportunity to be ysis of EU external trade in 2009- global sector ment of the situation of the T&C sectors in the EU seized. To support such political document the study as well as countries that are the main suppliers or and prospects for their future development”, has should bear its fruits by June 2012 by providing a set customers of the EU. It also evaluates the weight of officially been launched in 2010. The contract has been of policy recommendations that will serve as a basis for regions and sectors in EU trade during the period awarded by DG Enterprise and Industry to a consortium the expected Communication on our industry. under review. Furthermore, part B gives a special re- of researchers1 to assess the situation of the sector and To better assess the current and expected future com- port with tables and graphs for each of the 33 main to suggest recommendations for its future development. petitive situation of the T&C sector, an online survey, EU trade partners. based on a multilingual qualitative questionnaire, has The contractors will analyse trends in research & in- been sent to a variety of stakeholders across the EU-27 • Bulletin n° 03/2010 provides an in-depth analysis novation, restructuring, education & training, small and (Business Associations, Trade Unions, Research Cent- of the EU Textile and Clothing External Trade medium-sized enterprises (SMEs) difficulties and chal- ers, Educational Centers) and to around 800 T&C com- 2008-2009. It includes trade evolution by sector (i.e. lenges with a focus in given EU region. This will provide panies. Beside the survey, the Consortium is organising natural & man-made fibres, yarns & threads, woven an assessment of the overall competitive situation of our round tables and meetings with companies, research & knitted fabrics, carpets, home textiles, occupa- centers, universities and other local T&C experts in or- tional wear, men & women clothing), by products der to identify the main issues confronting T&C compa- (around 140 products i.e.: cotton yarn, denim fab- 1 Consortium: Saxion University (leader - NL), CITEVE (PT), nies, and to analyse- in the selected EU regions- trends Institut Français de la Mode (FR) and Danish Technological ric, bed linen, woven trousers,.. ) and by EU trading Institute (DK) working with Workshop (IT) and Euratex as in research & innovation, restructuring, education and partners (33 countries). sub-contractors. training.

27 Activities of the year 2010

Social matters Stéphanie LE BERRE

1. European Social Dialogue convincing the European and national authorities of and analyse the various national structures and to the need to maintain a complete textile and clothing collect good practices for a possible duplication The EU recognises social dia- value chain in Europe. This strengthened the European and synergies amongst these organisations logue as one of the pillars of the Social partners collaboration, maintaining sectoral so- European social model. The new cial dialogue in the textile and apparel one of the most • Enlargement Policy : article 152 of the Treaty on the advanced and complete at European level. • Integrated Project II: Follow-up of the national ac- Functioning of the European Un- EURATEX was attentive to the concerns of its trade- tion plans aiming at favouring capacity building of ion (TFEU) highlights the Union’s union partner and to the issues tackled by the European social partners to structure themselves at sectoral commitment to promoting the role of the European Commission in the field of employment, social affairs, and national level and to encourage them to take social partners, and supporting social dialogue. To- and education and training considering the ongoing dif- an active part in the EU sectoral social dialogue; gether with an improvement of the image of the Indus- ficult economic crisis touching Europe and our Industry. • EU Workshop “Consolidating the Legal and In- try, being an active EU social partner is a prerequisite In the framework of their European Social Sectoral Dia- stitutional Foundations of Social Dialogue in the in several areas of Commission competence such as logue EURATEX and ETUF-TCL agreed on a 2010 joint Countries of the Western Balkans and Moldova”- Education and Training while it provides access to a common strategy to tackle the crisis in our Industry. Albania and Macedonia wide range of grants and loans opportunities at Euro- pean level. In its July 2010 working document on the • Social Policy: • Industrial Policy: follow-up of industrial policy with sectoral social dialogue, the Commission notes that • Public procurement and social matters : promo- the view of ensuring a much more even re-launch of the texts concluded within the framework of the Eu- tion of the EU sectoral Guide “buying social” the demand irrespective of the sector to avoid dis- ropean sectoral social dialogue have ‘contributed to • Restructuring: Followed project “Seeks/action for crimination among companies and workers; modernising industrial relations and to adopting new a better anticipation of restructuring”; Diffusion of • Skill needs in the Textile and Apparel Industry: fol- social standards’. The current economic crisis has the recommendations by the Two sides of industry low-up of the activities of the EU Commission fol- confirmed the importance of European social dialogue and follow-up of their implementation lowing the study analysing the need for skills in the at both cross-industry and sectoral level, as well as • Code of conduct: First exploratory discussion Textile and Apparel Industry (flagship initiatives) the relevance of social partner initiatives tailored to the on the possible update of the “European frame- • Intellectual Property and fight against counterfeit- realities of companies and sectors. work agreement / code of conduct” EURATEX / ing: participation and follow-up of the social part- Thanks to the Social Dialogue, Social Partners put the ETUF:TCL of September 1997 ners of the EU IPEUROPAWARE project to the future of the Textile and Clothing (TC) sector in Europe • The joint project on Education and Training Obser- benefit of SMEs - more information in the Intel- at the centre of their 2010 concerns with the aim of vatories: launched in December 2008 to identify lectual Property part of this report.

28 Annual report

• Joint Project on REACH: helping SMEs -in par- at the sectoral social dialogue at European level end of the EU Sectoral social Dialogue and highlighted that ticular in the new member States and candidate November 2007, and formally signed end May 2008. the EU Textile and Clothing sector was one of the most countries - to adapt to REACH with a joint training With those recommendations, Social partners showed active and advanced sector in the EU social dialogue. using specific toolboxes for employers’ and trade their conviction that this industry has a future in Eu- This is one of the reasons why the EU Commission- unions’ representatives explaining REACH. rope, but that it should rely on increased Innovation, DG Employment decided to launch a feasibility study Research & Development, creativity, reactivity, and on the creation of Sector Councils Employment & • Commercial Policy: training, the social partners emphasized the need to Competences1 identifying this Industry as one of the • Discussion on a possible Joint Euratex / CEC / better anticipate changes in the sector, in a proactive possible pilot sectors. The study concluded that the Cotance / ETUF:TCL declaration on the impact of manner and within the social dialogue at all levels. setting-up of successfully operating EU level Sector the financial crisis following this 2020 Strategy A little over a year later, the evaluation enriched the Councils could be rated as high, provided the appro- • Trade sustainability impact assessments (TSIAs) discussion thanks to (a) new evidences and best prac- priate conditions were respected, and recommended and monitoring mechanisms: consultation on ini- tices within and outside the sector and (b) the identi- the Commission to: tiatives to evaluate and review TSIAs, and ongo- fication of the first follow-up actions carried out in ten • proceeds with promoting EU level Sector Councils ing study project for the Commission on effective EU countries, despite the impact of the financial crisis for Employment and Skills TSIAs and monitoring mechanisms that has severely affected the TC industry. • initially focuses on information exchange, • DDA: Industrial Tariffs and Non-tariff Negotiations • accompanies by and a more limited support line for • Origin marking • The EU feasi- policy development bility study on 2. Other Social Initiatives the creation of After the final conference on the Joint EU project of Sector Coun- Education and Training Observatories, it appeared that Amongst these various topics, several events and initi- cils Employ- the creation of such network of national organizations atives occurred in 2010 can be particularly highlighted: ment & Com- could be the starting point of a Sector Council in the petences: TC sector. Together with the EU study on ‘skills needs • Anticipation of Changes in the Textile The EU Commis- and Apparel Industry: sion applauded 1 Sector councils are platforms at sector level where stake- In 2010 social partners made a second evaluation of our Industry for the holders seek to gain insight into the likely developments in employment and skills needs, with the aim of assisting policy the follow-up of the joint recommendations on ‘bet- work done so far making within or for this sector. These kinds of Sector counter anticipation and management of change’ adopted in the framework cils exist in approximately half of the Member States.

29 Activities of the year 2010

and of the Leather industry, especially in the field assessments and trade policy. The main purpose of the identification of skills needs in those industries. was to present to social partners the interim results of The aim was to finalize - based on the results of the the ongoing study on ‘Trade and labour: making ef- keynote study and relevant documents/information - fective use of trade sustainability impact assessments the project of establishment of an European network and monitoring mechanisms’ and discuss our views of observatories in those industries. The objective and suggestions on how to: (a) enhance the consul- of said network would be to promote investment in tation process and (b) strengthen stakeholder partici- skills and improve the image of TCL sectors. The pation in trade impact assessments and monitoring network should ensure data comparability in par- mechanisms. Discussions covered related questions ticular in terms of classifying jobs and qualifications. of capacity-building and involvement of social dialogue in Textile and Clothing’, these initiatives could give the Scope: EU-27 +, including Turkey in particular. The committees where relevant. The meeting finally provid- EU Commission and the Social partners a lot of forth- external (EU) funding would pertain to the launch (2 ed an opportunity to update social partners and social coming opportunities to intervene in favour of SMEs of years). Finally, this network could, in the medium/ dialogue committees on EU trade policy in general and our sector in the near future. long term, contribute to the discussions/work of the on recent developments and ongoing public consulta- TC Sectoral Council for Employment and Qual- tions in relation to trade sustainability impact assess- A second project, limited in duration and amount, sup- ifications to be created. ments (e.g. EU-Japan FTA…etc.) ported by the Commission provided a useful follow-up to the Social partners by: • Sustainability impact assessments • Uzbekistan cotton and child labour • Setting-up a preliminary study to the material- and social issues For more than a decade human rights groups have ize the networking of existing textile and clothing EURATEX was invited by the European Commission highlighted state- sponsored use of child labour in TC observatories, in order to propose solutions to DG employment the cotton industry in Uzbekistan. Uzbekistan is the strengthen the collection and use of information that and social affairs world’s third biggest cotton exporter, shipping out exist today, in 8 countries, but also to disseminate to take part to 850,000 tons per year. Its cotton industry is worth good practices to other countries and in particular, multi-sectoral more than a billion dollars annually. But more than 90 to the new Member States / candidate countries social dialogue percent of the harvest is carried out by hand and state and their SMEs; meetings on authorities organize the use of child labour en masse • Organising a roundtable bringing together net- trade sustain- to ensure harvest quotas are met. works of actors and experts from the TC sector ability impact EURATEX participated in several meetings with the

30 Annual report

European Com- highlight the goals and to translate them into concrete the nomination of an EU Anti Trafficking Coordinator, mission, the actions and measures. who will provide for an overall strategic and policy ori- International EURATEX actively participated in entation in the field of trafficking in human beings3. Labour Organi- the preparation and the animation sation (ILO) and of the panel dedicated to Indus- At the end of 2010 it was clear to EURATEX that in ad- several NGOs tries during this event, in coordination with the European dition to the EU Sectoral Social Dialogue with the EU to contribute Commission, and with a full mandate from its EU Social Trade Unions, the Industry should have to pay more to ideas on ad- partner ETUF:TCL. EURATEX reminded the main difficul- attention and to deploy political assets in areas such dressing this, particularly through the EU policies. ties encountered by European companies to fight against as Education, Training, Corporate social Responsibil- Because of the clear violation of human rights and illegal competition from some companies exploiting hu- ity, and networking/clusters’ activities in 2011. ILO standards in this particular country, but also due man beings for commercial purposes. The question of to the difficult context of raw materials supply chains, the link with other illegal activities, like counterfeiting and EURATEX and its social partner ETUF:TCL officially piracy, has also been raised, while recalling the need for and jointly condemned this practise but also agreed to a better coordination of all the public authorities (police, concentrate their efforts during their social dialogue on justice, customs, economic and financial authorities) to how to tackle this issue. help companies to tackle this issue. This event was followed by the adoption of a new EC • Fight against trafficking in Human Beings directive on prevention and combating trafficking in In 2010, The Belgium EU Presidency, together with the human beings and protecting its victims2, as well as European Commission, organized on the fourth EU Anti-Trafficking Day 18 and 19 October the conference ‘Towards a multidisciplinary approach to prevention of 2 Directive 2011/36/EU on prevention and combating trafficking in human beings and protecting its vic- trafficking in human beings, prosecution of traffickers tims in the Official Journal of the European Union -OJ and protection of victims?’ L 101, 1 15.4.2011. The new Directive takes a victim The Stockholm Program and the Action Oriented Pa- centered approach, including a gender perspective, per on human trafficking emphasized the four ‘P’ prin- to cover actions in different areas such as criminal law provisions, prosecution of offenders, victims’ support 3 On the 14th of December 2010 the European Commission ciples of Prevention, Prosecution, Protection and Part- and victims’ rights in criminal proceedings, prevention appointed Ms Myria Vassiliadou to serve as Anti-Trafficking nership. The main objective of the Conference was to and monitoring of the implementation. Coordinator.

31 Activities of the year 2010

Intellectual property and

fight against counterfeiting Stéphanie LE BERRE

In 2010, the EU Commission EUROPE 2020 Strategy matters) was blocked in 2008-2009 by a few mem- • EURATEX position towards the MEPS was that the singled out Innovation in its broad definition as one bers of the European Parliament (MEPs) more con- Textile and Clothing industry absolutely do need of the key drivers that can help Europe get out from cerned by the possible limitation of civil liberties or to criminal sanctions at European Level, be them har- the current crisis and also prepare its economy for the “harassment” of consumers (linked to the question of monised or not is another matter. This question of next decade. Among the ways to succeed modernis- downloading music, films or software). At that time criminal sanctions was also included in the draft ing and strengthening the EU’s industrial capability, the some lobbies were against such draft as it was ap- ACTA to the request of the EU representatives, in Intellectual Property Rights and the protection/promo- plying to wilful, commercial or intentional violations of Section 3: Criminal Enforcement. For those rea- tion of creativity were outlined as key for success of trademark or copyright laws. The EU Commission DG sons, EURATEX supported the Report drafted by such strategy. With that in mind, the implementation of JLS (Justice, Liberty and Security) ordered an “Impact the French MEP Mrs Marielle Gallo (EPP), and wel- the recommendations of the 2006 High Level Group assessment on a possible modified proposal on crimi- comed its adoption by the European Parliament in on Textiles and Apparel made this industry a pioneer nal measures aimed at ensuring the enforcement of September 2010. in this area of activity both in the context of the Single intellectual property rights”. This report encourages the Commission, the Member Market and of the EU External trade policy. States and stakeholders to analyze and implement effective public awareness campaigns in relation to the 1. IPR in the Single Market impact of counterfeiting and piracy on society and on the economy and to pursue ongoing dialogues and • Enforcing and enhancement of Intellectual to seek agreements on voluntary practical measures Property in Europe: EU Council Resolution and aimed at reducing counterfeiting and piracy in the in- Gallo Report at the European Parliament ternal market, both online and offline. In 2010, EURATEX concentrated its efforts to convince Members of the European Parliament of the positive • EURATEX also welcomed and followed the adop- impact of the enforcement of IPR through new EU leg- tion of the Resolution of the European Parliament on islation. enforcement of intellectual property rights adopted The discussion on the draft directive on enforcement on 22 September 2010 and asking to the European of IPR (including the question of criminal offences in IP Commission for a more coherent and efficient IPR

32 Annual report

Strategy at European Level. The European Commis- garian, Lithuanian, Czech, Spanish, is downloadable • EURATEX position regarding damages is that these sion answered to this request on 8 December 2010, from the EURATEX website: http://www.euratex.eu/ should be applicable in every Member States and by announcing a forthcoming Action plan (Spring content/european-guidebook-intellectual-prop- should compensate the right holder for the totality of 2011), focusing on: erty-textile-and-clothing-industry the losses including for loss of profits. For the mo- • A proposal to extend the task of the European Ob- ment, national implementation regimes often fail to servatory against counterfeiting and piracy and to respect the above principle for example: Netherlands, provide it with a sustainable structure Spain or the UK. For the industry, Member States • An improvement of the cooperation between na- should: (a) ensure that all elements are compensated tional authorities regardless of the infringement on a commercial scale; • A reinforcement of the legal framework by the (b) provide lump-sum damages (equivalent to double evaluation and the review of the Enforcement Di- the licence fee) as an alternative to lost profits; (c) im- rective (2004/48/EC) plement rules for awarding damages and costs in IPR • A proposal for promotion and strengthening of cases that ensure that no economical benefit of an the stakeholder dialogues on counterfeiting goods infringement remains. In this context, a few specific sold on internet • The European Observatory against counter- corrective measures can be put into practice like: the feiting and piracy: removal of the products; the destruction of the prod- • Making SMEs aware of their rights : follow-up With regards to role of the Observatory and the experi- ucts; the costs for destruction and storage have to of the IPEUROPAWARE project ence of our organisation in the area of IPR and the fight be borne by the infringer or good faith should not be Since 2008, EURATEX plays an important role in the against counterfeiting and piracy, the EU Commission normally considered valid defence for the infringer for development of the EU Commission’s IPEUROAWARE invited EURATEX to take an active part in the sub avoiding the costs of destruction. project. In 2010 EURATEX focused its efforts and en- group on ‘existing legal frameworks’. EURATEX ergies on the dissemination of the multilingual manuals contributed to the subgroup which finished thecom - in order to raise awareness and provide information of prehensive review of national implementations of the Textile and Apparels SMEs on the protection and en- Directive in 2010, and started to focus our efforts in forcement of their creativities all over Europe and also proposing solutions in the field of: criminal sanctions, in some third countries. This guidebook (17 country cross-border injunctions, cross-border recognition of Regarding other activities, EURATEX actively fiches, 6-8 pages each) translated into French, Italian, Judgements, cross-border taking of evidence, and cooperated with the Observatory in a number of ac- English, German, Romanian, Bulgarian, Greek, Hun- criminal IPR Enforcement. tivities, like (a) the exercise identifying structures and

33 Activities of the year 2010

frameworks currently in place to combat IP infringe- discussions in progress which are of importance for the Council Regulation ments, within Member States or (b) the development our industry. Early October 2010, following the publi- (EC) No 1383/20032 on of a credible and reliable methodology on collecting cation of the draft ACTA agreement resulting from the customs action against data on counterfeiting and piracy, and the final round of the negotiations, EURATEX, in goods suspected of in- close collaboration with several European organisa- fringing certain intellectu- Finally, as stressed by the Gallo report (European Par- tions and a few MEPs, concentrated its efforts to con- al property rights and on liament), EURATEX drew the attention of the EU Com- vince the European Parliament of the need to adopt the measures to be taken against goods found to have mission that it would be necessary to clarify the tasks the Commission’s position on this document for a bet- infringed such rights. Depending on the review of the which are to be entrusted to the Observatory, as the ter protection and defence of IPRs at international level regulation and the results of this consultation TAXUD success of this new structure will largely depend on the as well as to make current standards more effective. intended to propose revised language on this regula- involvement and cooperation of all stakeholders, includ- Indeed for the first time ACTA aims to establish a com- tion. The goal of this consultation was to get input from ing the national authorities, rights-holders, consumers’ prehensive international framework that will assist Par- all interested stakeholders on the issue of customs en- organisations and the industries concerned, in order to ties to the agreement in their efforts to effectively com- forcement of IPR. Particularly, input was being sought increase transparency and avoid duplication of effort. bat the infringement of intellectual property rights, in from: IP right holders and their business associations, particular the proliferation of counterfeiting and piracy, economic operators, specifically those providing ser- 2. IPR at the EU borders & which undermines legitimate trade and the sustain- vices related to international trade of goods (shippers, at International level able development of the world economy. It will include carriers, consignors, customs declarants, holders of state-of-the-art provisions on the enforcement of in- customs procedures, holders of customs warehous- • Follow-up of the negotiations on the Anti- tellectual property rights, including provisions on civil, es, etc) and consumers. EURATEX participated to this Counterfeiting Trade Agreement (ACTA)1 criminal, and border enforcement measures, robust consultation and discussion amongst stakeholders. Strongly solicited by EURATEX and the Industry in cooperation mechanisms among ACTA Parties to as- In reality, DG TAXUD (Customs) was concerned by general, the European Commission agreed in 2010 to sist in their enforcement efforts, and establishment of the fact that Brazil and India launched a WTO dispute communicate in a restricted way the contents of the best practices for effective IPR enforcement. against the EU and the Netherlands over the seizure of generic drugs in transit; Their complaint was attacking • Protection of creativity at the borders: directly the EC Regulation 1383/2003, as it was pro- 1 ACTA: Anti-Counterfeiting trade Agreement (ACTA) This Agreement is negotiated by Australia, Canada, South Korea, EC Regulation 1383/2003 and its review United Arab Emirates, United States, Japan, Jordan, Mo- In 2010 the European Commission’s DG on Cus- rocco, Mexico, New Zealand, Singapore, Switzerland, and toms and Taxation (TAXUD) carried out the review of 2 EU Regulation 1383/2003 of 22 July 2003 published in the the EU OJ - L 196 of 02.08.2003

34 Annual report

viding with the possible control of goods in transit (and Customs statistics and Counterfeited goods: number of cases of intercepted goods not only import and export; cf. TRIP’s minumum) To the 50.000 view of these countries, goods in transit should not be considered in the customs control against counterfeit- 45.000 ing as the good are not strictly “commercialised” in the country in question. 40.000

35.000 • EURATEX strongly advocated for the possibility to maintain the control in transit of suspected goods, 30.000 as very often this was the only way to stop infring- 25.000 ing textile and clothing products coming from third Textile & clothing 20.000 countries (i.e. China) with final destination the EU or Other goods American Market (or other valuable markets for our 15.000 companies) 10.000 EURATEX also asked the Commission to support the 5.000 Spanish Customs’ proposal that the Regulation be amended to allow Customs to seize parallel imports. 0 Rather than put parallels specifically into the text, the 2001 2002 2003 2004 2005 2006 2007 2008 2009 idea was to remove the words in Article 3 that take them out of the scope of the Regulation so that Cus- Council in its March 2009 resolution regarding “EU i.e. 13.141 procedures for the year 2009 (on 43.472 toms could control them if they wished. Customs Action Plan to combat IPR infringements for procedures; more than 30% of all customs interven- the years 2009 to 2012”. tions). In 2010, EURATEX also discussed with the EU Com- mission how to implement the 2009-2010 Action Plan According to the last statistics available (see table) in In 2009, the main countries of origin or provenance on the acceleration of the fight against counterfeit- July 2010, Textile and clothing products, despite some of textile and clothing (and accessories) counterfeiting ing and piracy at international level through consum- improvements, are still remain by far the products that was China with more than 72 % (47 % in 2005), fol- ers’ awareness. This was supported by the European generate the highest number of customs procedures, lowed by Turkey (6%) and Poland (5%).

35 Activities of the year 2010

2001 2002 2003 2004 2005 2006 2007 2006/ 2008 2007/ 2009 2008/ 2007 2008 2009 Quantity of goods intercepted Total goods 94.421.497 84.951.039 50.314.886 103.546.179 75.733.387 253.041.066 79.076.458 -60% 79.076.458 126% 178.908.278 -34% Textile goods 4.782.672 9.243.074 1.892.924 7.827.951 10.982.915 30.256.061 17.783.130 -41% 17.742.298 0% 7.955.344 -55% Of which: Sportswear 340.432 378.252 259.322 1.017.597 3.003.630 1.084.293 1.441.502 33% 6.333.913 -23 6.292.154 0% Other clothing 1.795.834 3.067.583 912.930 1.572.446 4.261.900 4.283.805 5.025.682 17% 4% Clothing accessories 2.642.406 5.797.238 719.691 5.237.908 3.717.386 24.887.963 6.290.642 -75% 4.999.714 -20% 486.504 -90% (bags, glasses, belts…) Number of cases Total 5.056 7.553 10.709 22.311 26.704 36.486 43.671 19% 49.381 13% 43.472 -12% T/C 2.628 4.380 4.559 13.928 17.068 2.3040 26.670 16% 27.562 3% 13.141 -52%

Source: DG TAXUD

• Enforcing and enhancement of Intellectual The purpose of such dialogues is: to address problems and invention patent) , and USA (designs and copy- Property in third countries: participation to IP that EU industries encounter in their daily operations; right protection in the USA) dialogues to exchange best practices and to address concrete The European Commission is engaged in constant issues with a view to their resolution. To be effective IPR enforcement actions with countries where Euro- the EC Commission should be briefed and backed by pean companies face difficulties with the protection the industry. In 2010 Euratex was very active in provid- of their rights. To that effect, and within the frame of ing specific inputs for the following markets: Russia existing trade and/or cooperation agreements, regu- (existing discrimination between Russian and Foreign lar IPR Dialogues with the enforcement authorities of companies; current threats on Trademark protection), the respective countries (customs, justice, culture, IP China (conditions for granting patents, new rules for offices, etc.) is sponsored. inventions based on double patenting for utility models

36 Annual report

• Protection of creativity in China : conference; an international seminar and support to guides and also began to develop a series of e-learn- IPR II Project: after the 2007 launch and the estab- the EU-China IP dialogue framework as well as the ing modules which will address individual areas of IPR. lishment of annual work plans with China, EURATEX launching of a new e-learning module. For further in- Building on the achievements of a pilot project carried followed closely the activities of this project. OHIM was formation: http://www.ipr2.org out in 2008-10, the China IPR SME Helpdesk will con- the primary provider of trademark and design exper- tinue to provide free, practical first-line IPR advice and tise in the framework of this IPR2 project and this has China IPR Helpdesk: Throughout 2010, EURATEX services to European SMEs working in or with China. translated during 2010 into a number of milestones followed the activities of the Helpdesk team, which More information on the China IPR SME Helpdesk is including a training programme; two study tours; a focused on developing additional specific China IPR available at www.china-IPRhelpdesk.eu

37 Activities of the year 2010

Environment Adil ELMASSI

1. Climate plication of a uniform cross-sectoral correction factor of greenhouse gas that enters the atmosphere as a if necessary. The deadline in the Directive was the 31 result of the production, use and end-of-life of a prod- Emission Trading System (ETS): December 2010 although it is known now that this will uct. Although it addresses one of the key challenges An Analytical report in the light of the International ne- be delayed to March/April 2011. facing society today, it neglects all other environmental gotiations on the situation of energy-intensive industry F On the back of all these, the Textile industry needs factors. Therefore, it could give a biased picture of the concluded that Copenhagen has not changed much certainty on the amount of free allowances for 2013- environmental performance of a given product. for energy intensive industries. The decision to coun- 2020. Euratex expressed its fear on the possible higher Moreover, a worldwide consensus on a methodologi-

teract carbon leakage by means of free allocation as cost of electricity and costs in general if the compen- cal framework for measuring CO2 footprint of products foreseen remains fully valid. sation is not balanced; and at the same time satisfac- needs to be determined as well as an agreement on Moreover, The Directive contains clear criteria on the tion on the decision to allocate the compensation to how to communicate the information. Therefore, a determination of benchmarks: the consumer industries and not to the producers of broad reflection and in-depth stakeholder consultation • Product benchmark covering around 75% of eligible heat. For the co-generators the allocation will only be on the future of the EU environmental information poli- emissions on the heat and not the power. cy should be pursued with a view to achieve a genuine • Fallback approach for non-benchmarked products coherence and consistency to avoid the distortion of with either heat-based energy benchmark covering the internal market and the effects on market access Climate Change and CO2 Footprint around 20%, fuel-based energy benchmark cover- Product Labelling worldwide. ing around 5%, process emissions covering less This is increasingly being debated as part of the Cli- than 1% mate Change and Sustainable Consumption and Pro- 2. Sustainability The principle laid down in ETS Directive is one prod- duction (SCP) agendas. Policy initiatives are underway uct = one benchmark, i.e. no differentiation for how and require therefore close consideration. The impor- The Environmental Footprint of Textiles a product is produced (different technologies for tance of providing reliable environmental information On the face of the Environ- producing the same product) with what input (differ- about products to consumers is admitted by all. To ment Policy challenges, ent types of raw material or fuel) and where (in which this end, labelling can play a role to inform consumers addressing the environ- Member State). about product characteristics. mental footprint of textiles It should be noted that total amount of free allowances F However, EURATEX strongly questions the rele- has become a necessity. for industry is limited (fixed in the Directive). The Eu- vance and the feasibility of moving towards mandatory The goal is to give an in-

ropean Commission will ensure that this maximum is CO2 footprint labelling of products. sight to the environmental not exceeded and there will be a calculation and ap- Concerning the latter, its focus is limited to the amount impact of the whole tex-

38 Annual report

tile chain in which users can compare environmental in an effort to achieve a level playing field with our versal resource productivity target or to a percentage impact of processes or products and establish the competitors. of recycled material content. Such a strict approach environmental impact of own processes. In this way, could be counter-productive and jeopardise innova- the entire chain can be monitored. The development Sustainable Use of Natural Resources, tion. The latter is a crucial requirement for addressing of such a tool should provide fast calculation of the Including Resource Efficiency the major challenges. Resource efficiency should be environmental impact of the activities based on a com- The challenge is to ensure sustainable access to natu- made part of research and innovation policy. bination of own and/or standard data given therefore ral resources and their sustainable use. The industry Recovery and markets for secondary materials have an insight where biggest gains can be reached. The supports the need to move towards more sustainable a key role to play in improving EU resource efficiency. impact of alternative strategies may also be calculated use of resources and a resource-efficient EU economy. Additional efforts are still needed to ensure the estab- in a short time. As a “solution provider”, the industry is committed lishment of a genuine “recycling society” with fair rules to work with policy-makers in order to set the right for all market operators. Sustainability in the Apparel course for forward-looking policy developments on and Textile Industry natural resources. The 2010 review exercise of the Sustainable Consumption and As suggested during EURATEX 2010 General Assem- Thematic Strategy on the Sustainable Use of Natural Production and Sustainable Industrial bly and reconfirmed by the Board of EURATEX and the Resources is a great opportunity to do so. Policy Action Plan Directors General meetings during the course of the A successful natural resources policy needs to build The SCP/SIP Action plan was presented by the Com- same year, EURATEX prepared a Communication on on the experience gained from existing initiatives and mission in July 2008. Since the launch of the Action a voluntary sustainability framework for the industry. to give equal weight to the three inter-linked “pillars” Plan progress has been made towards its key aims The Communication does take stock of progress with of sustainability. When improving resource efficiency and objectives. EU Policies in the area of sustainable development of products, a full life cycle perspective is key for an Eco-label: The Regulation on Eco-label has been re- and provides input for reflection and debate on how to optimal control of both adverse environmental effects vised to increase its effectiveness and streamline its meet the challenges in our industry. and negative consequences on the economy or soci- operation. The changes include more product groups, Euratex believes that such a voluntary sustainability ety. A number of critical questions therefore, should be quicker criteria development process, reduction of an- framework for textiles will help raise awareness of the examined thoroughly and in close cooperation with all nual fees, simplification of assessment procedure and progress made since decades toward a sustainable interested parties in order to ensure an in-depth un- more focus on the most significant environmental im- industry, will provide a positive image of the sector, derstanding of the nature and scale of the challenges. pacts of products. will help influence future policies and strengthen the The concept of resource efficiency can hardly be re- international dimension of sustainable development stricted to a simple numerical target such as a uni-

39 Activities of the year 2010

Green Public Procure- Eco-label for Textiles and Bed Mattresses ment (GPP): This voluntary instrument promotes the use of Green Public Procurement in Member States while at Yarn suppliers are bringing yarns on the market that ing that no leaching can take place. This inconsist- the same time reduces environmental impacts and stimu- are inherently flame retardant. The fiber process ency has proven to be prejudicial to our companies. late the growth of green industry. The first set of GPP cri- consists in adding the fire retardant component in In order to meet all environmental standards at teria had already been developed. To disseminate informa- the mix prior to extrusion of the fiber. This means the production site, they have, with great success; tion and to support the uptake of GPP, a Helpdesk was that the fire retardant is permanent and durable and changed dramatically the production process to launched in January 2010. Eco-design Directive: provides consistent EU-wide resists both aqueous and physical erosion. By way meet the latter’s in a more sustainable way. They do rules for improving the environmental performance of of consequence, the fire retardant component is no longer use reactive nor additive flame retardants. energy related products through placing minimum re- embedded in the fiber/yarn. Therefore, no release Instead they have converted all this qualities by us- quirements on their design. The extension of the Di- and exposure to humans and the environment can ing inherently flame retardant yarns. Now it appears rective to cover energy related products means that occur. that these companies are penalized for what they products that do not necessarily use energy but have The eco-label criteria only allow “reactive flame re- should be awarded for. The only way to comply with an impact on energy consumption and can therefore contribute to saving energy can be covered. The first tardants”. The physical incorporation into the fibre the eco-label criteria is going back to the old situa- action plan for energy related products is in place and however, does not meet the “reactive flame retard- tion with all subsequent problems. now further thoughts are given to the second action ants” definition i.e. where a flame retardant reacts • This is why EURATEX took the necessary steps plan that may see some textile products been dis- chemically (a polymeric reaction) with the materials and urged a rapid remediation to the situation by cussed. into which they are mixed. bringing the issue to the agenda of the EU Eco- Aligning Sustainable Product Policy Instruments: JRC-IPTS has started work on a project to develop a The division in the eco-label criteria between “reac- label Board. EURATEX insisted on the urgency of common evidence base for some products that can tive” and “additive” flame retardants does not take the matter and does not recommend waiting for be used for the development of Eco-label and GPP into account fibers where the flame retardant is the next revision of the criteria for both product criteria and eventually for the implementing measures added into the mix before extrusion notwithstand- categories in order to solve the issue. under the Eco- design Directive. The processes for developing Eco-design, Eco-label and GPP require-

40 Annual report

ments are presently separate. To ensure policy coher- credible verification of environmental performance to lations or standards and for innovations not fitting into ence, compatibility, stakeholders/industry compliance boost confidence in eco-technologies. Tools will be existing legislative, labelling or standards frameworks. and overall working efficiency, the work will be co-ordi- developed to monitor, benchmark and boost the up- EMAS nated to develop a shared evidence base for the three take of eco-innovation. It also aims to improve access (Eco-Management different policy instruments. Output of this project will to new technologies and financing for small firms in and Audit Scheme): be proposals for Eco-label and GPP criteria. particular. In 2010 ETAP is being revised to promote The EMAS Regulation was modified to improve the ap- ECAP - Environmental Compliance Assistance eco-innovation across the wider economy. The Eco- plicability of the scheme and strengthen EMAS informa- Programme for SMEs: A pilot project on the transfer innovation Action Plan will build on the Environmen- tion and communications activities. In order to improve of best practice on environmental support for SMEs tal Technologies Action Plan and will be linked to the the applicability of the scheme, the revised Regulation was concluded in February 2010. Consequently, a Commission’s forthcoming Research and Innovation gives flexibility in the frequency with which SMEs are cross-border recipe for the successful support of Plan. required to publish their environmental statement and non-profit environmental services has started to take Environmental Technology Verification (ETV) Pre- updates; allows organisations to make a single corpo- shape; with special emphasis on indicators, planning, Programme: New environmental technologies face rate registration of all or some of its sites irrespective of innovative incentives and communication. Additional difficulties in breaking into the market and accessing whether these are in different member states; provides environmental expertise is provided through the En- potential users. Purchasers tend to opt for established special assistance in the development and implementa- terprise Europe Network to SMEs under the Small technologies. The ETV pre-programme is a new volun- tion phases of EMAS registration; introduces environ- Business Act (COM (2008) 394) and ECAP. A second tary scheme, being initiated by the European Commis- mental core indicators to achieve a harmonised and pilot project will take place during 2010, aiming to take sion on an exploratory basis in 2010-2011. It aims to thorough consideration of environmental effects; and best practice transfer concept further through on-the- provide technology developers and vendors with the requires reference documents to be developed by the job training sessions designed for both SME support possibility to have an independent, credible validation European Commission to facilitate the practical imple- organisations and their “clients”. of the performance claims related to their new envi- mentation of EMAS requirements. ETAP – Environmental Technologies Action Plan: ronmental technologies. This pre-programme will test Eco-industries: The Commission is working to en- ETAP was set up to speed up the removal of financial, the need, and possible benefits that could be derived, sure optimal framework conditions for these indus- economic and institutional barriers to the develop- from a fully-fledged EU ETV Scheme. ETV will provide tries. A recent study on the competitiveness of these ment of environmentally-friendly technologies. Current objective evidence on environmental performance. It industries made a number of policy recommendations priorities are mobilising finance and other actions to will not substitute existing regulatory or voluntary sys- including the need to improve the functioning of the promote market opportunities for business involved in tems such as type-approval or labels; but fill the gaps internal market in this sector. This initiative embraces environmental technologies. This includes establishing for those technologies going beyond applicable regu- the two most pressing challenges facing industry and

41 Activities of the year 2010

policymakers today namely how to grow our econo- sion has developed web-based consumer education of global or regional relevance, have made it clear that mies and create jobs while making the transition to materials on sustainable consumption. This informa- we need a system that delivers more rapidly, efficiently a more resource efficient economy. The Europe 2020 tion is part of a wider consumer education website and consistently throughout the EU and which, at the strategy recognises this with its sustainable growth pil- called DOLCETA which contains information and same time, is flexible enough to adapt to the challeng- lar focusing on both objectives. teaching materials on other consumer issues. es of globalisation and continue to contribute to the Natural Resources: EUROPA 2020 strategy has as its The SWITCH-Asia Programme: SWITCH-Asia pro- EU internal market of safe products. It’s against this flagship initiative a ‘resource efficient Europe: to help de- gramme aims to spur a systematic change towards background that the European Commission launched couple economic growth from the use of resources’. En- environment- and climate-friendly consumption and a Public consultation on the review of the GPSD. vironment Commissioner Potočnik has chosen resource production in the Asian region by advancing SCP prac- In this context Euratex would favour the application of efficiency as a key political priority. In order to decouple tices from demonstration to replication. The Programme international standards such as ISO whenever a risk or resource use, and its related impacts, from economic works simultaneously on the ground, with producers a product is not covered by a European standard and growth Europe will have to improve resource efficiency and consumers, and at the level of policy-making by on the contrary we would not favour the application of and thus competitiveness; taking a full life-cycle perspec- supporting formulation and implementation of SCP-re- non-European standards other than international ones. tive on resource use; and, using resource in a cleaner lated policies. So far, the Programme is funding 30 pro- The safety of consumers through the EU would be way. There is a clear need to continue to change behav- jects in 15 Asian countries in areas such as Green Public better ensured if products specific safety requirements iour through the traditional routes of environmental legis- Procurement, Cleaner Production, Eco-labelling, etc. were laid down at the EU level and made directly ap- lation and its compliance. Ways of changing behaviour plicable to economic operators, while leaving to stand- through a combination of economic and fiscal tools, mar- 3. Product Safety ardisation the development of technical solutions to kets, prices and eco-innovation are also being investigat- meet such requirements. ed. Further cross cutting dialogues with other DGs will be Revision of the General Product Safety The General product safety legislation should grant developed to ensure that resource efficiency is addressed Directive (GPSD) presumption of conformity with an existing stand- in the wide range of relevant policy areas. In order to meet The framework set up under the two successive Gen- ard as an interim measure to address emerging risks these challenges the European Commission will further eral Product Safety Directives - Directive 92/59/EC and while a permanent solution is being developed. Di- develop existing work including the Thematic Strategy 2001/95/EC - has built up, in almost two decades, a verging safety evaluations in different Member States on Natural Resources. A communication on the progress system that fosters a general culture that all consumer with respect to a particular product may occur. In that that the strategy has made was published in 2010. products must be safe, and integrates the role of Euro- case, EURATEX believe the best way to resolve that DOLCETA On-line Consumer Education Tool on pean standards for otherwise non-harmonised prod- is through binding EU-wide measures setting specific Sustainable Consumption: the European Commis- ucts. However, recurrent product safety alerts, either safety requirements for those products.

42 Annual report

The cooperation between market surveillance authori- Identified industry sectors are the construction materi- the issues related to “risk” but also to promote a posi- ties must be further improved by providing more finan- als, children‘s products incl. toys, electronics and elec- tive image of this technology in our sector aiming to cial support for exchanges and training of officials, by trical goods and clothing and apparel. For the first time avoid a GMO’s like scenario. providing more financial support for joint market sur- the focus will be on the textile and apparel articles and EURATEX draw attention to similar platforms in France veillance actions, more detailed rules on cooperation not on the chemicals used in the production of the lat- and Germany which have proven to be counterpro- at EU level and by establishing a coordination body at ter’s. The outcome of this exercise could lead to sec- ductive. On the recommendation of its Members, EU level to ensure cooperation between national au- toral specific policies such us those already existing for EURATEX decided to take a careful approach by wait- thorities also vis-à-vis imported articles. toys or cosmetics in the EU. After careful consideration ing for two reports resulting from the national discus- The European Commission prepared an impact assess- EURATEX decided on the advice of its Members not to sion in Germany before deciding on further steps. ment for various scenarios following which they will select take part in the project. the best scenarios for its proposal. The latter was made 4. Industrial Emissions available early December which marked the launch of First EU Nano-Conversation for Textiles Directive (IED) the formal consultation procedure. The European Com- An invitation from the European Commission to coop- (former IPPC) mission will finalise its impact assessment in March 2011 erate in a nanotechnology platform discussion for the and launch the co-decision procedure in mid-2011. EU textile industry was debated. Attention was drawn The revision of the IPPC Directive must strike a difficult to the need to engage in a sectoral dialogue with balance which stimulates its implementation while pre- Chemicals in Products under SAICM/ NGO’s and the European Commission to help clarify serving its key principles and cost-effectiveness. Dur- UNEP ing the co-decision procedure EURATEX reaffirmed its The initiative will collect and review existing informa- positions, which lay the foundations for ensuring that tion on information systems pertaining to chemicals IPPC remains a cost-effective piece of legislation. in products including but not limited to Regulations, Euratex believes that the best way forward to stimulate Standards and industry practices; Assess that infor- implementation is the obligation for the competent au- mation in relation to the needs of all relevant stake- thorities to justify derogations from IPPC permit condi- holders and identify gaps; Develop specific recom- tions. Additional measures such as the introduction of mendations for actions to promote implementation of the “European Safety Net” would be disproportionate. the Strategic Approach with regard to such informa- Euratex questions the rationale for introducing new pro- tion, incorporating identified priorities and access and visions on soil remediation and believes that very detailed delivery mechanisms. descriptions of measures (baseline report) jeopardize the

43 Activities of the year 2010

subsidiarity and pro- ciple of no discrimination between articles imported that all articles marketed in all essentials for other pur- portionality principles. and EU produced. In view of achieving a level playing poses than biocidal will need to be authorised. In addition, liability for field we support in principle the proposal to label bio- This would create an unmanageable financial and ad- remediation should be active modified textiles and hope that this will ease the ministrative burden for industry, in particular SME’s. determined according enforcement role of the Authorities. Hence, enlarging the scope of the Biocide Directive to national regimes. Euratex also holds the view that the authorisation pro- to include finished articles is inappropriate and unjusti- With a view to avoid negative impacts on the generation cess must be limited to the biocidal product and not fied. . It is consequently imperative that the BPD is fully capacity all over Europe, EURATEX supports the transi- to the article. By restricting the authorisation to the ac- in line in its approach with that of REACH by requiring tion periods for applying new Emission Limit Values to tive substance, the proposal will address positively a the same definition of an “article” and an authorisation existing LCPs, in particular until the end of 2020. fundamental issue that carried an unnecessary cost for the biocide product used to treat the articles; An At last but not the least, EURATEX believes that ef- for the article producers. authorisation that encompass the uses. forts should be better spent in reinforcing implemen- To the question “ does the combination of an article Furthermore EURATEX would like to insist on the need tation and enforcement of the existing framework and an active biocide fall under the scope of the Direc- to define “the primary function of a treated article”. Has rather than changing it substantially. Due to the com- tive?” the current dominant view in the Council and the “treated socks” a primary function of killing bacteria? plexity of the IPPC process priority should be given EP tends to believe that if the biocidal active substance We believe that as an article, socks primary function to training and capacity-building. National, Regional is released from the related article to control harmful is still the function of a sock, and the secondary, is to and/or European training programmes should be put organisms outside the avoid growth of bacteria therefore it is not a biocidal in place to enhance the exchange of information and treated article or if it is product. As long as the primary function of an article is of best practices. Licensing authorities and industry intended to control only not defined in the legal text, their will be room for dif- have to learn from the experiences gained in other organisms that are not ferent interpretations. EU countries. harmful to the treated Finally, the Textile and Apparel Industry has in the past article, the article or the frequently pointed out that the categories in the cata- 5. Chemical Policies material in question has logue of product categories do not correctly represent the function of a deliv- all of the biocidal uses within textiles. Companies are Biocide Products Directive (BPD) ery system and shall be actually acting in a “grey area”, because the biocides Euratex welcome the proposal for the revision of the considered as a biocid- are only authorised for uses that do no necessarily re- BPD. We are particularly pleased that the revision al product that must be flect actual practices in our sector. To this end, clarifica- makes a positive proposal toward accepting the prin- authorised. This means tions in the catalogue of product categories apply.

44 Annual report

Voluntary Emissions Control Action Buyers to facilitate the incorporation of REACH in Programme (VECAP) - Measurable their purchasing. The second is a co-project between Achievements EURATEX and ETUF aiming at addressing the needs The Voluntary Emissions Control Action Programme of employers and employees in relation to REACH im- (VECAP) aims to reduce chemical emissions through plementation. a better understanding and better management of chemical substances throughout the supply chain, REACH - Substances of Very High from the producers to the downstream users. VECAP Concern Relevant for Textiles in its current form covers producers, immediate cus- According to REACH every Substance of Very High tomers and a number of second-line users (the cus- Concern (SVHC) needs to be authorised for the use tomers of the producers’ customers), who use bromi- within Europe. The criteria for SVHC are defined in the stances will be added to the list during the course of nated flame retardants in their products. REACH Regulation. Every Member State is allowed to 2010 and 2011. The annual progress report for 2009 was published make its own proposal for those substances meeting in 2010 and focused on Deca-BDE, which is used in the criteria. After public consultation the substances REACH - Preparations for Authorisation textiles for upholstered furniture. The annual report are put on a candidate list. For industry, it is important Applications also covered HBCD, which is used in EPS and XPS to know, which processing step, which additive might Authorisation is a new risk management instrument insulation foams, in ABS resins and in textiles. VECAP bring a company in a conflict with any SVHC in the list. aiming at ensuring that risks from the use of certain applied in a consistent manner, it identifies the main Moreover, their nomination in the candidate list trig- substances of very high concern are either adequately potential sources of emissions, and allows the impact gers several obligations for downstream users. controlled or justified by socio-economic grounds, of process changes to be evaluated. Because of the The first list was published with fifteen substances of having taken into account the availability of alternative noticeable emission reductions achieved VECAP is which seven are relevant for textiles processing. The substances or processes. The ultimate objective of the considered a success story and an image building ex- first supplement added fourteen new substances of authorisation process is the progressive replacement ercise for the textile industry. which four are relevant. The second supplement saw of these substances. 30 substances added to the list of which eleven are The manufacturing of substances, the use of sub- REACH - Various Euratex Studies of high importance for the textile industry. In the mean stances as intermediates, as well as the placing on Euratex is engaged in two projects. The first is a study time 8 new proposals were made with 2 relevant for the market of a substance in an article are not sub- mandated by Euratex Board and sponsored by EURA- us. In addition, the two Commissioners for DG Envi- ject to the authorisation requirement; on the contrary, TEX, Fedustria and UIT. It will produce guidelines for ronment and DG Enterprise announced that 125 sub- the incorporation of a substance in an article by an

45 Activities of the year 2010

EU producer falls under the scope of authorisation. as further specified on the ECHA website. REACH - German Proposal Applications for authorisation may be made by the While this feedback to ECHA will allow the Agency to for the Restriction of PAHs EU manufacturer(s), importer(s) and/or downstream become aware of the potential supply gap in the supply in Consumer Products user(s) of the substance. chain, it is primarily up to the textile industry as down- The Government of the Federal Republic of Germany The recent agreement between the Commissioners stream user to mobilise the respective manufacturer / has asked the European Commission to propose a responsible for REACH on the remaining open issues importer to live up to their registration obligations. restriction for eight polycyclic aromatic hydrocarbon regarding the Authorisation process should open the (PAH) compounds in accordance with Article 68 para- way to a publication of the first list. The number of REACH Registration Deadlines graph 2 of the REACH Regulation. applications for authorisation per year is expected to REACH Registration is needed to manage the risks In support of this initiative, the responsible German grow to 400 in the first years. F Therefore, EURATEX that chemicals can pose. It is one of the key elements authorities have prepared a restriction dossier which would recommend its Members to establish close of REACH, which places the responsibility on industry proposes a limit of 0.2 mg/kg for PAHs in all articles contacts with their companies in order to better as- to manage the risks that chemicals can pose to the which could be used by consumers (also referred to sess and plan the upcoming workload. human health and the environment. Companies must as ‘consumer products’). The dossier was submitted document how to control such risks by sending a reg- to the European Commission on 02/06/2010 and is REACH - List of Substances Identified istration dossier to the European Chemicals Agency, based on the requirements of Annex XV (including for Registration in 2010 ECHA. The deadline for registration is 30 November analysis of risk management options and socio-eco- Downstream users have the possibility to check for 2010 for: nomic impacts). The German proposal will have some themselves if the substances important for them have • substances produced or imported in volumes of effect on our sector of activities. Consequently, EURA- been identified for registration in 2010. F EURATEX 1000 tonnes per year or more TEX launched an evaluation of the impact the proposal encourages the industry to take this opportunity to • substances that are carcinogenic, mutagenic or will have on the textile sector to determine its extent. check the list and to make sure that no unexpected toxic to reproduction and produced or imported in breaks in the supply chain will take place for these criti- volumes of 1 tonne per year or more REACH - The Textiles Uses-Descriptor cal substances. • substances that are very toxic to the aquatic envi- According to REACH, Downstream users of substanc- In case a given substance is not on the list the compa- ronment and produced or imported in volumes of es subject to registration may –after the end of the reg- nies are advised to contact their supplier(s) to enquire 100 tonnes per year or more istration period – use these substances only if they are if they intend to register the substance or not. They registered by the manufacturer/importer and if they are also have the possibility to inform ECHA about their For all other substances, the deadlines for registration ‘permitted’ for specific uses by mentioning these uses substance missing from the list via a specific web-form are 2013 and 2018. in the safety data sheet. For substances in volumes of

46 Annual report

Commission’s approach to the review

• Different aspects of REACH will be looked at to inform the 2012 review process • Several thematic studies address issues which may provide inputs to the Commission services 10t or more per year, the registrant previously needs in the review to perform a chemical safety assessment to demonstrate whether the substance can be used safely by Assessment whether or not to amend the scope of REACH to avoid overlaps with other relevant Com- the Downstream User, if necessary by following ap- munity provisions. propriate risk management measures. Consequently, the Downstream User is motivated to make his uses Experience acquired with the operation of REACH. known to the substance manufacturers (“identified uses”) – of course, without revealing any confidential Nanomaterials in REACH registration dossiers and adequacy of available information. business information. Inspections requirements for REACH and CLP. The uses descriptor for the textile industry will allow for that. It is therefore a REACH implementation tool by The (nominal) risk caused by chemicals in 2012 compared to the 2007 (a follow-up of the baseline excellence that resulted from the grouping of a num- study of REACH). ber of national projects under the auspices of Euratex and TEGEWA. This is a tool designed specially for the Functioning of the European Chemical market after the introduction of REACH regulation. companies in the textile sector to help them implement Impact of the REACH regulation on the innovativeness of EU chemical industry. REACH in a less burdensome way and with no costs.

Health and environmental benefits of REACH. REACH Review Registration requirements for 1 to 10 tonnes substances and polymers. REACH contains a number of reviews to be carried Review of the European Chemicals Agency (ECHA) based on Article 75 of Regulation (EC) N° out ranging from entry into force to 12 years into the 1907/2006. REACH regime. One specific review, set out in Article 138(6), requires the Commission to carry a review by The REACH contribution to the development, commercialisation and uptake of products of emerging 1 June 2012 ‘to assess whether or not to amend the technologies. scope of this Regulation to avoid overlaps with other relevant EU provisions. On the basis of that review, the Implementation and enforcement of restrictions in Member States. Commission may, if appropriate, present a legislative proposal.’

47 Activities of the year 2010

Establishing a List of Substances Health Rules as Regard Animal tred on self declared environmental claims and a final Regulated for Use in Textiles By-Product – The Case for Wool working draft has now been submitted to TC248 for The database is in relation to the substances of very A European Commission proposal intends to revise approval and conformation of the formal work pro- high concern based on different priority levels. Level and repeal the annexes of Regulation 1774/2002/EC gramme. The formal work period then contains defi- one, mandatory at EU level; level two, mandatory at and incorporate them to Regulation 1069/2009/EC. nite time scales to work within depending on the type national level; level three, voluntary schemes. Euratex The revision of the annexes of 1774/2002/EC presents of final document that will be submitted. presented the structure of the tool to be developed an opportunity to attempt to resolve some long stand- and insisted that as first step the structure needs to ing issues for the wool segment of the textile industry. be agreed on since it will condition the future devel- As it has been the case up until now, article 10 of opment of the tool. Members approved the approach Regulation 1774/2002/EC amended by Regulation and the structure. 1069/2009/EC considers as “category 3 material” wool and hair by-products and subject them to certain 6. Other issues of importance rules. The procedure defined for “category 3 material”, for example conditions of transport (vehicles and con- European Apparel and Textile Value tainers), provisions for approved and registered estab- Chain Platform lishments and plants dealing with “category 3 materi- This is a platform under the auspices of CEFIC and als” and end points; seems too restrictive compared EURATEX bringing together different actors in the tex- with the relevant health risk considered. This poses tile supply chain. The platform is a focal point for ac- two problems to the wool industry. First, the Rules are tion on REACH and other EU Policies in the field of disproportionate to the heath risk and second, unnec- Environment and Health and Safety. The other objec- essary administrative and financial cost. tive is to build relationships between the different actors such as the chemical producers, formulators and Use of the Terms Ecological, Green and downstream subsectors in the textile chain. Organic in the Labelling of Textiles and F EURATEX view this as an essential tool to engage with Textile Products different player on a wide range of issues. This is also a The Working Group has made good progress despite tool to act globally and not just locally or nationally. some difficulties being encountered. The work is cen-

48 Annual report