North Korea's missile launch affects Global Trade

INDUSTRY.co.id - Nusa Dua - North Korea's missile launch which has resulted in a number of protest countries feared could affect global trade if not immediately sought a diplomatic solution for peace.

"There must be intelligent diplomacy to resolve the crisis by involving some of the most influential countries so it is not mutually war," said former NATO secretary general Jaap de Hoop Scheffer in Nusa Dua, Bali, Saturday (16/09/2017)

This was conveyed when he delivered a keynote speech at the 2017 International Textile Manufacturers Federation (ITMF) Conference attended by more than 200 textile and textile product companies in more than 20 countries.

He said a number of countries that must be involved to be able to solve the crisis in addition to North Korea, as well as South Korea, China, Japan, and the United States. They must negotiate to find a solution.

In solving the weapons crisis the most effective and peaceful way is simply by diplomacy and eliminating misunderstandings between conflicting parties.

'There has never been a dispute that ended in a way of war or using weapons. The diplomacy process is the best way, "he said as quoted by Antara.

He is worried that if the crisis on the Korean peninsula is allowed to drag on then in the long run it is unlikely to have a negative impact on global trade, including textiles and textile products.

Another crisis that also needs to be anticipated so as not to become a prolonged dispute, said Scheffer who also once served as Dutch foreign minister is a matter of disputes over state borders in the South China Sea.

"The area is very strategic and a lot of international shipping through the sea whose value could reach trillions of dollars each year," he said.

He hopes that a number of disputing countries such as China and Vietnam as well as the Philippines can resolve the dispute so as not to disrupt the flow of merchant shipping passing through it.

Scheffer said the peaceful situation is the most anticipated condition for entrepreneurs because the conducive situation is capable of launching trade flows that ultimately boost economic growth of each country.

He also highlighted the importance of the textile and textile products business on the world market that has made an important contribution to the growth of the world economy.

"Textiles and textile products are strategic commodities so I need to be present to speak in this forum," he said.

ITMF is an international forum for the global textile industry and is committed to providing information to all manufacturers in various countries with results of studies, publications and surveys, as well as annual conferences.

ITMF is a non-governmental organization established in 1904 and monitors the challenges of textile and textile industry industrises for more than a century.

Director General of ITMF Christian Schindler said there were a number of reasons for Indonesia to host this year's conference.

First, he said Indonesia is a country that has an integrated textile supply chain from spinning to garment.

Secondly, the Indonesian textile industry has experienced steady growth in recent years and has the potential for rapid growth so as to improve the business climate for domestic and foreign investment.