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Cablegate: Tracking Changes in Textile and Apparel

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS COLOMBO 001605

SIPDIS

STATE FOR EB/TPP/ABT EHeartney
COMMERCE FOR ITA/OTEXA/MD'Andrea

E.O 12958: N/A
TAGS: KTEX ECON ETRD MV ECONOMICS
SUBJECT: TRACKING CHANGES IN TEXTILE AND APPAREL
EMPLOYMENT AND PRODUCTION AFTER QUOTA ELIMINATION,
MALDIVES

Ref: 184238

1. Per reftel, information for Maldives follows:

Year 2002 2003
Total industrial production in USD MN 52 53
Total textile and apparel
Production in USD MN34 36
Textiles and apparel's share of
Maldives imports12% 11%
Textiles and apparel's share of
Maldives Exports38% 32%
Total manufacturing employment 13,648(a) NA
Total textiles employment 0 0
Total apparel employmentNA NA

(a) Manufacturing employment according to 2000 census
nt according to 2000 census
data and expatriate employment data.

2. Maldives has a small apparel industry, with
exports of about $36 million, or about 32 percent of
exports in 2003. There is no textile industry.
Apparel exports are all quota based, and most workers
are foreigners. The apparel industry is expected to
disappear with the demise of the Multi-Fiber
Arrangement in 2005. Exports will decline as a
result, as most investment, workers and materials used
in the industry come from abroad. Supporting
businesses - nearby shops, food and goods suppliers,
transport providers will suffer job losses, estimated
at about 200. The main effect is predicted to be a
loss of government revenues from land rental.
Lunstead

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