South African textile impasse

South Africa’s textile industry group Alliance (Texfed) chief executive Brian Brink of the respondents said that the South African clothing and textile products to China to adopt a quota restrictions have not been brought to the country to domestic garment manufacturers to buy the desired results, the new quota system only Since the Chinese cause importers to seek outside suppliers for procurement, making it India, Indonesia and Malaysia and other countries become big exporters of the winner.

Restrictions on the questions

Will not turn back to the procurement needs of the textile industry in South Africa, also cast doubt on the import restrictions really perfect. Brink believes that if China is not a business to take advantage of new business address to circumvent quota, and that is encouraging knowledge of South Africa in the remote areas on Earth in the garment industry. Is expected to come from India and Indonesia’s textile and clothing imports will continue to grow legitimate. Brink said at the time did not foresee the quota so quickly and easily circumvent the South African government’s Department of Trade and Industry (DTI) at the time must be sure to take measures to prevent the quota from the surge in Chinese imports.

More problems

In addition, according to the WTO, China on the implementation of the quota should be terminated by the end of 2008, when the quota system for textile manufacturers in South Africa provided by the defective protection will also disappear. However, some extent, Texfed nothing on this complaint. Texfed support of the DTI from January 2007 to take effect on China’s textile import quota restrictions, the textile industry in South Africa on behalf of its members to express their views on major issues. Self-employed since 2003 by 70,500 people reduced to 50,500 people, some of the textile factory had been laid off. Imports reached the highest number.

Plan of Action

At the same time, DTI announced that a South African clothing and textile industry to adjust and upgrade the capital plan of action. DTI plans to raise money for research, development and technology upgrades. The Government will increase efforts to prevent illegal imports, illegal imports, many manufacturers have been regarded as the greatest threat to the industry. However, the proposal is too small too late.

Brink said the club’s position is that the import restrictions provided by the minimum space should be used to encourage investment, to upgrade manufacturing facilities and technology improvement. And investment incentives until it was released in July, set up Towards the end of the already limited. The whole issue in the original manufacturers to use imported fabric processing, which in turn set up after the search for domestic sources of goods suppliers have encountered more difficulties highlighted. South Africa, part of the local manufacturers complained to the media in South Africa, the South African poor quality of local fabrics, higher prices and delivery delays caused by the loss of orders.

DTI has also proposed to improve the competitiveness of the South African clothing industry, including textiles imposed new import duties and to simplify the complex system.