JOINT DECLARATION ON FREEDOM OF TRADE

between

The International Council of Hides, Skins & Leather Traders' Associations
and
The International Council of Tanners

In 1992 the International Council of Hides, Skins and Leather Traders' Associations issued a statement re-iterating its earlier call for immediate moves towards the elimination of all existing barriers to a free and fair trade in hides, skins and leather.

The International Council of Tanners had previously published its original statement on orderly development of world leather production in 1981. This was followed, in 1983, by a joint policy statement on over-capacity endorsed by both the ICT and ICHSLTA.

In April 1996, at their respective Council Meetings held in Hong Kong, both organisations repeated their pleas for all governments to remove quotas and restrictions from both import and export trade in this sector; namely, items covered by Chapter 41 of the World Customs Organisation. At the same time both Councils called for the removal of export/import taxes on Chapter 41 commodities or, at the very lest, their reduction to nominal levels. Such taxes distort trade.

Over the 15 year period which has elapsed since the ICT doctrine was first issued, world trade in untanned hides and skins has risen 18% by volume and 60% by value. It's current worth in global terms is USD 4.3 billion annually. Likewise world trade in leather has increased 140% by volume and 240% by value to USD 9.5 billion per annum.

However, as reported by the United Nations Food and Agriculture Organisation: "Trade barriers have reduced trade in the sector by as much as USD 2.5 billion annually".

FAO's inter-governmental forum of Hides & Skins also "considers it important to continue its efforts to raise awareness of the damage caused to world trade by these restrictions and to encourage reduction of these barriers in the longer term".

ICHSLTA AND ICT both concur with this view but also consider that trade restrictions have an equally adverse effect on Developed and Developing Countries, two of which are now to be counted amongst the world's largest leather producers. Thus the impetus for product improvement for the benefit of the consumer, will, we believe, be best served by the immediate removal of all impediments to free and fair trade in this sector - whether they be subsidies, export licensing regimes, import/export quotas or taxes of all types.


[This is the text of a document held in the archives of ICHSLTA and was published by ICHSLTA on 15th June 1996 Ref. DC/125/96.]