The WTO cell of the commerce ministry has recently sent a letter to the leading associations and chambers, asking for their opinion on the extension plea to the world trade body.

Two associations -- Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA) -- have already supported the initiative, known as 'Istanbul Declaration,' of the 72 groups.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is yet to respond.

"We are taking our time as it is a very sensitive issue for us. We need some clarifications and have requested our mission in Geneva to provide us with necessary information," BGMEA President Annisul Huq told The Daily Star last night.

He said BGMEA is discussing with small and big manufacturers to decide on the issue.

The commercial counsellor of Bangladesh embassy in Washington informed the commerce ministry recently that top representatives from the group urged Bangladesh to support their move.

"The president of the National Council of Textile Organisations (NCTO) Cass Johnson, and Executive Director of the American Manufacturing Trade Action Coalition (AMTAC) Augustine Tandillo recently called on Bangla-desh ambassador in Washington, seeking Bangladesh's positive involvement in this regard and to request the director general of WTO to revisit its textile related policies," the counsellor said in his letter.

The declaration expresses concern over apparel trade monopoly by China. "If quotas are removed on January 1, 2005, global textile and clothing trade will be monopolised by a few countries such as China. The consequence will be massive job disruption and business bankruptcies in dozens of countries dependant upon textile and clothing exports."

In textile categories in the United States where a number of quotas have already been eliminated, China has taken almost 60 percent of the market in less than two years and is continuing to increase its share, it said.

"China's massive growth has come at the expense of virtually all other participants in the market, especially the least developed and the developing countries which are poised to lose as many as 30 million jobs due to the quota phase-out.

"Trade in this sector has been compromised by the use of trade distorting practices including deliberate currency under-valuation, state subsidies and the proliferation of non-performing loans and rebate schemes, among others.

"For example, such trade distorting practices have allowed China to drop prices for textile and apparel products by as much as 75 percent, and have given China an unassailable and unfair advantage in world markets."

The phase-out of textile and clothing quotas was intended to liberalise trade for all nations, not to ensure domination of world trade in textiles and clothing by countries that use unfair trade practices, it pointed out.

The declaration urged the WTO to convene an emergency meeting to discuss this proposal by July 1, 2004.

It also requested WTO to undertake a full review of global textile and clothing production, export and market circumstances so as to determine whether to finalise the phase-out process on January 1, 2008 or to develop an appropriate alternative arrangement.

The group also sent a letter to the US president, seeking his support in the matter.