US embassy cable - 04COLOMBO1605

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, Maldives 
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