For the seventh consecutive year, representatives of the world’s various watchmaking associations met in Basel on 1st April at the invitation of the FH.
The conference brought together 23 people representing associations from the following countries: Germany, China, France, Hong Kong, India, Italy, Japan, the United Kingdom and of course Switzerland. It should be noted that the American Watch Association sent its excuses, while the new Indian association, the All India Federation of Horological Industries, took part in the event for the first time.
Those present firstly exchanged information on the general trend of the industry which, on the world stage, is holding up reasonably well. The Hong Kong watch industry, for example, registered an upturn in its exports of 9.0% last year, while the increase for China was 4.3%. Watchmaking associations have agreed to exchange statistical information on a regular basis.
The participants then reaffirmed their support for harmonisation of rules of origin at a global level, a current topic of negotiations within the World Trade Organisation (WTO). The latter are making slow progress, in view of the general tenor of discussions in the WTO. Some associations took the opportunity to note that the origin of the watch must take into account final assembly, which plays an important role in the quality of the finished product.
The delegations then condemned counterfeiting once again and noted that it would be useful to set up panels on the Baselworld model at other watch industry exhibitions. The representatives of Hong Kong pointed out the role of their respective organisations in encouraging their members to respect intellectual property rights. They conduct inspections of stands before exhibitions open, whether they are held in Basel or Hong Kong.
Regarding customs duties, which have always been and continue to be an important problem for the watch industry, participants reaffirmed their desire to reduce them in order to facilitate trade. On this point, the Indian delegation mentioned approaches it had made to the authorities of its country, not only to reduce customs duties, but also to cut local taxes and simplify the fiscal system. India has demonstrated a willingness to go down the path of simplification, particularly with the recent introduction of VAT, but it must be admitted that its implementation throughout the country will take several more years.
Next, the French delegation aired its concerns over the fall in price of basic electronic movements, which it would appear have fallen by 15% in one year, a worrying phenomenon which could lead European associations to bring the matter before the community authorities with a view to possible anti-dumping measures. In fact, it seems that the fall in price depends on the market, which is suffering from overproduction. It may also be due to the technological advances of recent years.
Lastly, the delegations expressed their concern over the emergence of new European legislation concerning health and the environment. This legislation is liable to affect the watch sector disproportionately, in view of the small quantities of heavy metals used in our industry. One example is the new directive on dangerous substances, which seeks to prohibit the use of lead in electronic products from 1st July 2006 and which could affect electronic movements, since their soldered components still contain lead.
By way of conclusion, the delegations emphasised the importance of these informal meetings that provide an opportunity to share views on subjects of common interest. No time was lost therefore in scheduling the next meeting for Baselworld 2006.