Ref. Ares(2015)3520741-26/08/2015 Euro-Mediterranean Dialogue on the Future of the Textiles and Clothing Sector (2004-2006) Report of the co-leaders of the working groups July 2006
TABLE OF CONTENTS I. Euro-Mediterranean Dialogue on the Future of the Textiles and Clothing Sector 1) Background 2) Introduction of Euro-Mediterranean Dialogue on the Future of the Textiles and Clothing Sector a) Objective b) Mandate of Dialogue Group c) Membership of Dialogue Group II. Conclusions of the various working groups 1) Working Group Competitiveness 2) Working Group Industrial Co-operation 3) Working Group Education and Training 4) Working Group Research and Technological Development 5) Working Group Innovation and Technology Transfer III. Proposals for actions - table IV. Conclusions Annex: Proposals for concrete actions 2
I. EURO-MEDITERRANEAN DIALOGUE ON THE FUTURE OF THE TEXTILES AND CLOTHING SECTOR 1. BACKGROUND The textiles and clothing sectors are among the most important in the Euro-Mediterranean area. In the European Union these industries generate a turnover of more than 200 billion euros and provide jobs for 2.7 million workers. The European textiles and clothing sector accounts for about 4% of the EU s total manufacturing production and about 7% of jobs in manufacturing in 230 000 firms. The sector is dominated by SMEs, often concentrated in certain regions where they have a major economic and social role. Mass production has slumped in the EU, with some of it shifting initially to Central and Eastern Europe and then to Bulgaria, Romania and the Mediterranean basin, the advantage being that the whole chain of production remains close to the market in Europe. European firms now focus on innovation, quality, and products with high added value and niche markets. As a rule, the EU is still the biggest exporter of textile products and the second exporter of clothing (behind China). In some markets, including technical and non-woven textiles, European producers lead the way. The main textile and clothing (T/C) players in the Mediterranean region are Tunisia, Morocco, Egypt, Syria, and to a lesser extent and more recently Jordan. In all these countries the T/C industry is the principle industrial employer, accounting for 30 to 50% of jobs (mainly female). In Tunisia, Morocco and Jordan, clothing is the first export commodity; in Egypt and Syria textile and clothing articles are the second export commodity after oil products. In these countries the textile and clothing sector accounts for 20-50% of exports. However, by far the largest T/C producer in the Mediterranean region is Turkey. It is a country with a complete textile and clothing manufacturing pipeline. It enjoys a broad domestic raw material basis which supports downstream T/C industry. It is one of the leading cotton producers. It is estimated that in Turkey 2.5 million workers are employed in the T/C sector which is 5 times more than what the official statistics say. In Jordan, the T/C industry represents rather a small-scale sector but the country aspires to develop the sector to the Tunisian level. For manufacturing as well as for craft trades in the past, textiles are part of a long Mediterranean tradition. For more than 20 years trade between the Mediterranean countries and the European Union has been dominated by textiles and clothing. This sector alone accounts for 50% of exports of manufactured products from the MEDA region to the EU. The main purchasing countries are France, Germany, Belgium and Spain. This partnership needs to be strengthened, especially to cope with competition from Asian countries, particularly China, since the end of the Multifibre Agreements. The main assets of the Mediterranean region are its low labour costs and its geographical and cultural proximity to the European market. Indeed, the Mediterranean countries are capable of fulfilling a supplementary order within 10 days. This ability to respond is vital in a sector which is essentially linked to fashion and thus to the frequent need to renew collections. For the Mediterranean countries, the manufacture and export of textile products and clothing represent a factor in economic development and political stability. The current organisation of the textiles and clothing sector in the Euro-Mediterranean area is based on subcontracting relations between the industry in Europe and manufacturers in the Mediterranean countries. This model is no longer adapted to the tendency of contractors to look for an integrated offer at a competitive price and who now source their products from around the world. The Euro-Mediterranean area must now adapt to stand as a cohesive and competitive group. The priority must be to create synergies between operators on both sides of the Mediterranean, thereby helping to 3
build partnerships and take advantage of the factors which favour competitiveness in the area, based on their comparative strengths. 2. INTRODUCTION OF THE EURO-MEDITERRANEAN DIALOGUE ON THE FUTURE OF THE TEXTILES AND CLOTHING SECTOR Under the Barcelona process which aims to establish a Euro-Mediterranean free trade area by 2010, the EU Member States, the Mediterranean partners and the European Commission approved in Rome on 3 October 2003 the creation of a dialogue group on industrial policy and cooperation. The purpose of this dialogue is to encourage and facilitate exchanges of experience and good practices between both sides of the Mediterranean. In view of its economic significance, the textiles sector is particularly concerned by this dialogue. The Commission had in any case, in its communication of 2003 on the future of the textiles and clothing sector, announced that the creation of the Euro-Mediterranean area and the extension of the pan-european system of diagonal cumulation were priorities for the textiles and clothing sector in the Euro- Mediterranean area. At the ministerial conference on the future of the textiles and clothing sector in the Euro-Mediterranean area held in Tunis on 28 September 2004, the Euro-Med ministers approved the Tunis Declaration. Two of the main points are of major relevance to the Euro-Mediterranean dialogue on the future of the textiles and clothing sector. The ministers pledged to support the Euro-Mediterranean association and bilateral cooperation and to increase the competitiveness of the textiles and clothing sector by policies on education, R&D and technological innovation, along with the dissemination of best practices and exchanges of information. In response to the recommendation put forward by ministers at the fifth Euro-Mediterranean interministerial conference in Caserta on 4 October 2004 to launch a pan-euro-mediterranean dialogue on the future of the textiles and clothing industry, the Commission created a platform to define industrial strategies and to discuss initiatives to achieve the full potential of the pan-euro-mediterranean market and increase the competitiveness of the textiles and clothing industry. Objective The objective of the Dialogue on the future of the textiles and clothing sector in the Euro-Mediterranean area is in fact to foster dialogue on industrial strategies with a view to promoting the competitiveness of the Euro-Mediterranean trade area. Another aim of the dialogue is to encourage and facilitate exchanges of experiences and good practices. The working group discussions allow the participants to define specific priority areas with regard to partnership initiatives. The financing to support such initiatives can be sourced from existing European programmes, as well as from national programmes and private financial contributions. Mandate of Dialogue Group To identify approaches allowing the development of joint industrial strategies in the textiles and clothing sector in close collaboration with the operators concerned; To seek joint solutions to improve the competitiveness of the sector in the Euro-Mediterranean area; 4
To provide a platform for information on current initiatives and existing instruments throughout the region; To encourage regional and sub-regional cooperation efforts. Five working groups were set up to focus discussion on essential issues to ensure the greater competitiveness of the textiles and clothing industry in the Euro-Mediterranean area and to examine the opportunities for strengthening industrial cooperation. The groups are: Industrial co-operation (new means of co-operation, shift towards co-contracting) (co-leaders: Morocco and France) competitiveness (CSR, IPR and the fight against counterfeiting, applicable legislation, social and environmental issues) (co-leaders: Lebanon and Italy) research and technological development (co-leaders: Egypt and Portugal) innovation and technological transfer (technological and non-technological innovation) (co-leaders: Tunisia and Spain) education and training (vocational training, better qualifications) (co-leaders: Tunisia and Turkey) Each working group is headed by two co-leaders (one from an EU Member State or candidate country and one from a Mediterranean associate country), who jointly chair meetings and lead discussions. Membership of Dialogue Group EU-25 and three candidate countries (Bulgaria, Romania and Turkey) and the Mediterranean countries: Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Palestinian Authority, Syria and Tunisia. 5
II. CONCLUSIONS OF THE VARIOUS WORKING GROUPS WORKING GROUP COMPETITIVENESS I GUARANTEEING A RIGHT TO FAIR COMPETITION IN THE EURO-MEDITERRANEAN AREA For most Mediterranean countries it is vital to improve and ensure the right of competition. Small firms will not be able to develop until a level playing field is created to curb the monopolistic positions which are tightly held by a handful of firms, which are not allowing business growth outside their own areas of activity. One of the priorities is thus to introduce a Mediterranean competition facility. Its aim would be to help small businesses reach their minimum efficiency level. While in some countries there is no obvious monopoly, the sudden opening to globalisation has left the manufacturing structure incapable of coping with competition from the Far East. The working group recommends: draw up a map of the textiles and clothing sector in the Euro-Mediterranean area to obtain an overview of the sector; create an industrial co-operation network to extend the Fashion Forum set up by the High-Level Group on the textiles and clothing sector; envisage and establish a Competition Facility to allow small businesses to compete and to help them reach their minimum efficiency level. II PROTECTING INTELLECTUAL PROPERTY AND COMBATING COUNTERFEITING Protecting intellectual property and dealing with counterfeiting are vital for the textiles and clothing sector, in view of what is at stake in economic and social terms. In this sector, in fact, design, innovation, image and the defence of intellectual property are particularly important distinguishing features for these labour-intensive industries in competing with international rivals. This is why effective protection for designs and models is so vital. The textiles and clothing sector has to cope with its own specific difficulties: - copying of designs and models, apart from counterfeiting of brands and trademarks; - increased foreign competition, especially from countries where labour costs are low; - the range of products, together with the need to bring out new collections more frequently (with four mini collections per season, on average). The factors listed above are hindering the development of small and medium-sized firms in the sector. They are also reasons which fully justify the campaigns to inform firms, consumers and the authorities and to make them aware of the economic risks inherent in counterfeiting and pirating, as well as the ways which are available to combat them. Counterfeiting is a practice of unfair competition which harms not only businesses but also the health of consumers, who are increasingly exposed to serious risk and fraud. The group s recommendations, in conjunction with those of the Industrial Cooperation working group, thus propose the following actions: - production of a guide in several languages on intellectual property rights; - training actions geared to specific audiences. III ENCOURAGING SOCIAL RESPONSIBILITY AND SOCIAL AND ENVIRONMENTAL ASPECTS Social responsibility and the environmental clauses are two important factors in stimulating competitiveness and improving the quality of production. Ideas such as the Ecolabel are particularly 6
suited to the textiles sector and should be encouraged. It is also important to help European firms and those in the Mediterranean area to focus on environmental issues and social clauses which can, in some cases, increase the added value of their products. The recommendations are thus as follows: to promote the European Ecolabel by encouraging firms to market goods and services which are more environment-friendly and by enabling European consumers to identify them easily by means of the flower logo; to promote positive experiences such as the treatment plant installed at Baciacavallo (Italy) and the dissemination of best practices (SMAP programme of short and medium-term priority actions on the environment); to study the impact of the REACH Regulation on the Mediterranean area. IV PROMOTING THE APPROXIMATION OF REGULATIONS AND ENCOURAGING ACCESS OF FIRMS TO FINANCING As a rule, firms in the textiles and clothing sector do not meet requirements under existing financing arrangements because they do not exhibit rapid growth, nor are they newly established undertakings. The following recommendations could be introduced: to evaluate existing instruments for SME financing in the Euro-Mediterranean area and obtain precise information on instruments already in place in order to identify the required actions and to respond to the specific needs of the textiles and clothing sector; to combat the over-negative image of a declining sector which is mistakenly conveyed and which is economically detrimental; its dynamic image has to be restored, primarily through the widespread distribution of brochures describing best practices; to make SMEs more aware by providing them with information and concrete advice on evaluation criteria (compilation of a practical guide); existing guides in the textiles and clothing sector and solutions in line with the best practices should be taken into account; to encourage investment by setting up a regional institution or agency which could work in particular on promoting the image of the region as a whole. 7
WORKING GROUP INDUSTRIAL CO-OPERATION I Initial discussion on optimising the value chain Before the MFA was abolished, the Mediterranean area offered the European textiles industry a useful compromise between cost and proximity. In the face of the difficulties besetting both sides of the Mediterranean, however, optimising the value chain to foster complementarity, quality and regeneration would help businesses on both sides to boost their competitiveness and to retain some of their activities and employees. The proposal is to draw up an inventory which would enable the different branches of the textiles and clothing industry to define the value chain in the Mediterranean countries in more precise terms and to identify the most competitive segments to ensure that they have the information they need for synergies to be developed. Consideration could also be given to looking into possible support measures for investment projects. II Essential development of co-contracting The transition from manufacturing subcontracting to co-contracting is an important issue for the industry in Europe and in the Mediterranean countries, since contractors are increasingly looking for an integrated offer. In order to make this transition, a co-contractor needs to learn about the supply chain and acquire general market knowledge. For this to happen, it is necessary to build industrial cooperation (study of flow management, supply platforms, use of information and communication technologies), with a training back-up. III Promoting the use of information technologies in the textiles and clothing sector It is vital to make use of technology and encourage innovation in the textiles and clothing sector in the Euro-Mediterranean area. Clients are tending to demand finished, customised products with short delivery times. It would thus be useful to develop cooperation aimed at promoting innovation and fostering the use of new technologies in design and fashion (personalising mass-produced products, virtual design, creating prototypes, etc). However, business response, creativeness and control of production require the use of information technologies, the cost of which generally exceeds most firms means, especially in the current economic climate. The proposal is thus to identify and support projects aimed at facilitating the access of firms in the textiles and clothing sector to new information technologies and the support they can offer. The aim is to optimise and improve the process, as well as the cost and time taken to exchange necessary data. This debate must take account of the inherent restrictions in installing hardware and software (40% of the cost of IT systems), as well as advisory services and training on installing IT systems. IV Compliance with codes of ethics and social issues Making consumers aware of firms respect for the fundamental rights defined by international institutions such as the ILO is likely to encourage human rights. It also helps to improve the competitive environment for firms in the Euro-Mediterranean area. It would be useful to consider, on a voluntary basis, ways of prompting manufacturers and distributors to adopt product labelling providing information on compliance with basic labour laws. Labelling of this kind should be extended to the whole Euro-Mediterranean area. It would also help to define an identity for textile products made in Euro-Med. 8
WORKING GROUP EDUCATION AND TRAINING The working group Education and Training focused on possible means of cooperation between the EU Member States and the Mediterranean countries and more on the need to identify common needs and interests than on issues of national/local relevance. Nevertheless, the best national/regional practices and success stories should be published and the information thereof exchanged between the Mediterranean countries and the EU Member States. I - IDENTIFYING TRAINING NEEDS AND RESOURCES Knowledge of the available resources, the procedures to be followed and the communication of results to ensure continuity have been considered as vital in the field of education and training. Having an overview of the training situation would in fact make it possible to identify genuine and common needs of countries in the Euro-Mediterranean area with regard to training in the T/C and also to elaborate concrete proposals, such as the development of a training card in the textiles and clothing for the Euro- Mediterranean countries. The training of workers as well as of entrepreneurs has been deemed vital in view of the importance of understanding markets and management techniques. II - PROPOSALS FOR ACTIONS: CONCLUSIONS conduct a survey on current and future training needs for the industry in the Euro-Mediterranean area; exchange of know-how and good practices and provide mutual information on current cooperation projects to train workers in the textiles and clothing sector; provide information on the Europa website on existing projects and on good practices in the Euro-Mediterranean countries; establish a platform of networks (Internet portal on good practices and networks dealing with sources of knowledge such as business, marketing and production), including a data base of experts with special knowledge; engage employers to invest in the training of their employees; develop trainers exchanges as well as of studying materials (especially between the Mediterranean countries); consider possible projects and future training needs and develop common projects (EU-Med, Med-Med). 9
WORKING GROUP RESEARCH AND TECHNOLOGICAL DEVELOPMENT The working group on research & development (R&D) has carried out a survey on R&D activities in the textiles & clothing in participating countries. This survey has enabled to collect relevant information about the R&D activities and key players in countries and, to propose suggestions on how to strengthen the cooperation in this specific field between the EUROMED countries. Its has been decided that the most important projects to be proposed by the working group at this stage should not be research related projects itself but instead projects or actions that could contribute to the improvement of networking and co-operation between active players in the field of R&D within the EUROMED region. Potential research projects should be a result from such actions aiming to improve common knowledge and networking. It has also been agreed to reflect on possible specific events aiming to put together researchers and research managing staff in order for them to meet and exchange ideas about possible projects. Based on the two above considerations ideas for concrete actions aiming to match both those visions have been suggested: 1. Development of a website (collaborative platform) which could work as a common platform for sharing and exchanging the information between partners and as an effective tool to support the work on research projects development (from idea to project proposal) and to support technology transfer, namely by helping bring together technological offers and demands available within institutions of the EUROMED region. 2. Organizing a EUROMED conference on textile & clothing research topics, focusing on the relevant research topics identified in the survey which has been carried within the working group on R&D. The conference could be organized outside of Brussels, namely in some of the Med countries and Egypt could be considered as an interesting option as a host country. 3. The update of the information collected during the survey was considered important and it has been suggested to update it directly trough the proposed website. 4. Since the website could be used for both fields of R&D and innovation, it has been agreed to combine proposed actions with the group on innovation and technology transfer. 10
WORKING GROUP INNOVATION AND TECHNOLOGY TRANSFER The working group on innovation and technology transfer has put emphasis on the exchange of knowhow and transfer of technology from the EU to the Mediterranean countries. The group has agreed that the transfer of know-how and technology, technological and non technological innovation, the installation of modern and reliable information and telecommunications services and above all, the cooperation in those areas would benefit the competitiveness of the textile and clothing companies, in particular of those in the Mediterranean countries. The group identified four strands of tasks that have been discussed in the meetings of the group: Know-how and technology transfer. Good practices and positive experience. Information and Communication Technologies. Co-operation Projects. From these strands, the group identified three actions to be implemented, some of them jontly with other working groups: 1. Transfer of technologies to Mediterranean countries that could be used to reduce energy and water supply and thereby develop the finishing fabric industry. The objective is to limit imports of finished fabrics to Mediterranean countries and to improve their own base for fabric finishing industry and develop garment industry. 2. Sector-based website for better Euro-Mediterranean networking with the access to information & databases (research results, research centres and researchers, information on good innovative practices, transfer of know-how, existing technologies for technology transfer, etc.). The aim is to improve networking and cooperation in the Euro-Mediterranean zone. 3. Training of workers and seminars. The training programme could concentrate on a few topics such as sourcing and logistics, and include seminars on the use of new technologies to promote the innovation and technological development between companies as well as to favour the transfer of technology. 11
III. PROPOSALS FOR ACTIONS - TABLE Area Action/Project Proposal Expected results Education & Training Fashion City Project concept of the development of the Euro- Mediterranean fashion: Training programs for young designers in EuroMed countries, the training followed by the presentation of their collections at textiles events, fashion shows etc.; summer training/summer university. Specific training to put in place on the T/C environment in the Mediterranean for the creators and fashion designers; Well trained young designers Estimation of duration or timing training programme of 1-month duration Budget 90.000 euro per designer Budget Source public and/or private Proposed by working group(s) public/private Industrial cooperation and Education & training (see details in Annex) Training of trainers, workers and employers in order to increase the qualification level and the awareness of intelligent textiles, technical textiles, new technologies and new machinery. (see details in Annex) Increased number of knowledgeable and more qualified workers 1-week training module project of 36 months duration 60.000 euro public/private Education & training and Innovation & technology transfer
Creation of a specific database of qualified trainers/training centres per country: Specific database of qualified trainers per country; training centres and other structures in the country providing specific training suitable for textile/clothing companies Bridging trainers with trainees and meet the training needs of trainees by delivering qualified trainers/training 36 months 50.000 euro for the database public/private Education & training This project could be further developed towards establishing the so-called Training Matching Centres to match the training needs of trainees with the existing training programmes and qualified trainers providing the requested trainings. Those Centres could provide a trainer via its database from one of EU-MED countries and organise trainings in the partner Centre. Thereby those Centres could play a role of a bridge between trainers and trainees. Intellectual Property Rights (see details in Annex) Awareness-raising actions in IPR: To provide trainings and organise awareness raising actions on IPR in Euro-Med countries A practical guide on how to fight the counterfeiting and raise the awareness on IPR among enterprises of the T/C sector could be published, including a Put in place strategies for the protection of intellectual property Contribute to the economic development of creative companies Reinforce the system of protection of IPR and 2007-2009 Actions: 50.000 euros per country guide: 50.000 euros public Industrial cooperation and Education & training and Competitiveness 13
Industrial Cooperation comparative analysis on the legislation and legal procedures in European and Med countries, and highlighting some best practices in the field of the fight against counterfeiting. (see details in Annex) Project EMEDTEXNET: To develop partnerships between enterprises in the form of coaching (see details in Annex) Fashion City Project concept of the development of the Euro- Mediterranean fashion: Enhance co-contracting 20 alignments of enterprises of the north and the south of the Mediterranean with the aim to initiate cooperation projects and pooling of good practices (enhance co-contracting) improve the awareness of IPR among SMEs Provide information on sectoral issues of the intellectual property rights to enterprises of the EuroMed zone To form partnerships between enterprises between North-South in order to meet specific needs Facilitate meetings and exchanges between the Euro-Mediterranean professionals and enterprises aiming at the co-contracting 18 and 24 months Approximately 18 months 65.000 80.000 euro per partnership co- Industrial operation co- and of national financing participation enterprises 60.000 euro public/private Industrial cooperation (see details in Annex) 14
Research & Development Sector-based website for better EU-MED networking in research and innovation with the access to information & databases (research results, database of research centres and researchers, information on good innovative practices, transfer of know-how, existing technologies for technology transfers etc.); and a newsletter on innovation and existing best practices in the T/C sector in order to provide actual and up-to-date information to the endusers. This tool could work as support instrument for networking of partners in the EuroMed region Promote the sharing of knowledge and improve networking and cooperation in Euro-Med zone Dissemination of relevant public information to the general public Exchange of private information between partners or groups 2007-2009 Development of the website: 20.000 euros; + other related costs (service provider, registration of the domain upload of the information maintenance of a newsletter: 20.000 euro per year public/private R&D, Innovation & technology transfer and Competitiveness (see details in Annex) 15
Annual Conference on Textiles & Clothing related research and innovation in the EuroMed region with the aim to: - disseminate on-going research on Euro-Med institutions; - promote direct contact among researchers and research organizations; - disseminate innovations available in EuroMed organizations which are ready to market; and - promote technology transfer processes. Promote the exchange of experience and the information on research and enhance the transfer of technologies 2-day event in 2007 in a Mediterranean country public/private R&D Innovation and Technology Transfer (see details in Annex) MOD TECH EUROMED.NET To provide T/C companies with the software and logistical instruments to develop a network (see details in Annex) Development of business by working in networks of suppliers and customers 12-18 months per country, depending on country s specificities 210.000 euro public/private Industrial cooperation 16
Networking/ Databases/ Information Fashion City Project concept of the development of the Euro- Mediterranean fashion: Sectoral observatory under the portal www.citemedmode.com for the collection of the information (economic, technological, commercial, legislative etc.) and its dissemination; to establish a virtual office of trends for the internet portal www.citemedmode.com Provide sectoral information for the professionals/enterprises of the EuroMed region 2007 50.000 euro public/private Industrial cooperation (see details in Annex) EuroMed network of agencies promoting investments in the T/C sector: the idea is to take advantage of the already existing network created by ANIMA project, and eventually recommend that a study or a specific section on foreign direct investments in the T/C is included among activities carried out by ANIMA team during the year for which the project will be extended. Encourage investments in the Mediterranean area 2007-2008 ANIMA will be extended by one year and a new call for proposals will be launched in the future for investment promotion EU funding Competitiveness 17
Distribution cluster within the Euro-Med countries in the textile and garment sector: by 1) mapping the distribution chain and collecting the data on existing clusters and by 2) executing activities that could help enhance exports of participating firms. Ease the access the stakeholders of the T/C sector to existing and new markets and strengthen the capacities of companies 2007-2008 To be further elaborated public/private Competitiveness The project aims to open new markets for stakeholders in textile and garments by establishing distribution clusters in the Euro- Mediterranean zone and to help establish a climate of trust and open communication among stakeholders in the sector, leading to further cooperation in other domains. (see details in Annex) 18
Extension of the existing Fashion Forum to the Mediterranean partners It is proposed to extend the participation of representatives of the Mediterranean fashion industry in the Fashion Forum set up by the members of the High Level Group for textiles (HLG). This task force could support the implementation of cooperation initiatives and provide useful information on the fashion industry trends and figures, aiming at enhancing exchange of information between producers and retailers. The HLG attached in its report of 2004 great importance to a speedy completion of the PanEuroMed area which will provide the essential base to unleash the industry s potential for cooperation and networking in the area and develop further process and product innovation in both the technological and nontechnological (creativity and fashion) fields. In principle, the Fashion Forum is open to participants from the Med countries and the attendance in meetings is free of charge. The participants have to only bear the travel costs. private Competitiveness 19
IV. CONCLUSIONS The future of the textile and clothing industry in the Euro-Med region End of quotas in January 2005 has given rise to a progressive increase of imports to the EU and to other countries in its proximity from Asian countries, in particular from China. In the face of increasing competition from third countries, the completion of the Euro-Mediterranean zone by 2010 and the impacts of the structural changes are becoming significant to both sides of the Mediterranean rim. Their trade and industrial links are becoming even more important, providing all the more reason to establish privileged relations and to better focus on the essential aspects of the mutual co-operation. The textile and clothing sector in the Euro-Mediterranean region enjoys several competitiveness strengths and offers many opportunities to the EU Member States as well as to the Mediterranean partners. The Euro-Mediterranean region therefore needs to face the competition as a cohesive, strong and competitive block of countries. The geographical proximity of the southern Mediterranean countries to the EU together with the primary importance of logistics in today s business provide to the region a clear advantage for setting up entrepreneurial co-operation strategies. The priority should be given to the creation of synergies between operators on both shores of the Mediterranean and help to build partnerships. Subcontracting relations will inevitably need to move forward more progressively towards co-contracting and co-producing relations in order to maintain and further develop comparative advantages of the region. Enterprises have the main responsibility to adapt to these new challenges and public authorities should assist by playing a key role in establishing favourable framework conditions in which the sector could develop and could capitalize the opportunity to compete internally and internationally, on an equity basis. The public authorities should help: promote R&D and innovation in the sector and the development of technical textiles to manufacture products with a higher added value; support the improvement of professional qualification, training schemes and skills of textile and clothing industry workers; increase the employment quality and the equality of opportunities; and strengthen the fight against counterfeiting and fraudulent imitations; promote fair globalisation in the textile and clothing sector, since the more vulnerable groups, particularly women, and developing countries, in which an important percentage of employment depends on textile and clothing industry, risk to be most affected. It is unquestionable that cooperation in the field of R&D and innovation should be based on a networking culture and most of all on good common knowledge among active players. It could be considered that the research community is well informed about the industry s needs and the industry development strategies given the considerable amount of information that already exist. Any co-operation strategy is condemned to fail if the research community does not succeed in establishing a sustainable and regular framework of contacts and does not improve the exchange of knowledge between research and innovative organizations, and if it fails to identify fields of interest for launching common research strategies and projects within the Euro-Med region. It is clear that the first steps for creating such favourable co-operation environment have been achieved within this Dialogue by promoting common reflections on research subjects. Moreover, all key players including respective organizations and experts should interact in order to achieve a real bottom-up approach. The future work in the field of R&D and innovation should focus on facilitating conditions for active key players to meet and exchange experience and ideas for mutual collaboration.
Technological innovation is another key factor for the competitiveness of the sector. For traditional industrial sectors, and in particular for the textile and clothing sector, the future lies in greater development of innovative activities in every aspect of design, quality or specialization, giving more added value to products that could compete at international level. And the transfer of technology between the countries of the region could be in this respect fundamental. The incorporation of information and communication technologies (ICT) to increase the supply chain, exchange information, create virtual networks, manage smaller lots or reduce delivery periods, is very important for improving the industry s competitiveness. SMEs also need to take advantage of Businessto-Business e-commerce to share their fragmented activities and to look for suppliers and markets worldwide. Furthermore, the textile and clothing enterprises have to review their business strategies. Nowadays to compete by price is not a good strategy any longer. The only way to keep the production inside Europe and within the Euro-Mediterranean region is by concentrating on activities which create an added value. To achieve this there are two strategic axes to concentrate on: - Design and image: to promote training and facilitate the interaction and collaboration between designers and manufacturers on one hand and enterprises on the other. - Research, development and innovation: the sector should continue investing into research and innovation activities to obtain new smart textiles and new more efficient methods of transformation, which would enable to commercialize creative products at competitive prices. The textile and clothing enterprises should also pay attention to: - potential needs of the market; - possibilities the technology of materials and textile processes offer; - co-operation that leads to the access to the information and the knowledge; and - the access to the existing process and communication technologies. Lastly, the achievement of the Euro-Mediterranean zone entails the elimination of restrictions in the freedom of movement of goods and the limitation of competition distortions, while creating environment favourable to innovation and investments. In this context, the protection of intellectual property and the fight against counterfeiting are primordial elements for the success of the Euro-Mediterranean trade zone. The protection of intellectual property rights is important not only for promoting the innovation and the creativity of the industry but also for improving the competitiveness and maintaining the jobs within the industry. The Euro-Mediterranean Dialogue on the future of the textile and clothing sector The objective of the Euro-Mediterranean Dialogue on textiles has been to examine possible common industrial strategies with the aim to improve the competitiveness of the textile and clothing industry and realise the full benefits of the Euro-Mediterranean trade zone. The work organised within five working groups, each treating specific area, has brought some fruits. The groups have been able to identify ideas for co-operation projects that could benefit textile/clothing companies in the Euro-Med region, in particular in the field of training, research and innovation, business co-operation and competitiveness-related aspects (IPR, investments promotion etc.). 21
The Euro-Mediterranean Dialogue has served as a good opportunity for networking among the members of the groups and their home organisations and has created a platform for the exchange of information on actions and policies put in place in favour of the industrial sector. It is important to note that the concrete results of the work in the groups have been achieved thanks to the engagement of a few members, namely the co-leaders of the groups and several members of the working groups. The project proposals of the working groups, as presented in this report, suggest practical solutions for better facing the competition arising mainly from Asia, and improve the competitive position of the countries of the Euro-Med region. Some of these proposals can however be implemented only if sufficient financial and human resources are available. With respect to the future, the exercise undertaken within this Dialogue should be given a fresh impetus and be modified in such a way that it makes the dialogue among participating countries more attractive and meaningful. It could also be envisaged to hold discussions on strategic issues and organise public conferences or workshops with experts in the field. The public administrations at EU and national levels, industry representatives and experts should continue exchanging their experience, and professional associations and the representatives of social partners should be encouraged to become more actively involved. The Euro-Mediterranean Dialogue on textiles should continue providing a discussion platform in which the ways of plentiful co-operation among the countries in the region are explored and possible common industrial strategies are analysed. In the near future, it should be examined whether the proposed projects are feasible to be realised and whether they could be co-financed by public funds at EU and national levels and/or by private investors. 22
ANNEX: PROPOSALS FOR CONCRETE ACTIONS 23