November 5-12, 1983 The foregoing brief review of the different sectors of the rayon industry leaves little room for doubt that the unfair competition offered by massive imports at almost throw-away prices, much below cost of production, has resulted in large under utilisation of domestic capacities, accumulation of inventories and financial losses. The policy of liberal imports under OGL, aimed at increasing exports through improving raw material availabilty to the weaving industry, has done incalculable harm without helping in any way NICARAGUA the cause of exports. Exports of viscose filament yarn fabrics have, in fact, showed a declining trend over the past three years. If the government wishes well of the rayon industry and wants it to play its legitimate role in meeting the textile industry's expanding fibre needs, the policy in regard to imports as well as fiscal levies will have to be suitably modified at the earliest. Liberal imports in face of large idle capacities at home accord ill with the government's increasing emphasis an exports to shore up foreign exchange reserves.
