Nigeria
Nigerian textile industry is one of the biggest employment providing
sectors of the country and provide employment to more than 500,000 people. This
industry is now passing through tough phase due to worldwide economic downturn
and this has placed many jobs at stake if measures are not undertaken.
The textile industry and various bodies representing
industry have been crying for revival package since long. The Minister of State
for Finance, Mr. Babalola has announced N70 billion textile industry revival fund,
which is expected to be released by the government in the month of March.
China
The executive meeting of the State Council, chaired by
Premier Wen Jiabao on February 4, 2009, examined and approved in principle the
revitalization plan of the textile industry, exports of which are rapidly
falling since the last few months.
Increase in Export Tax Rebate rate
Export tax rebate rate on textiles and garment has been
increased from 14 percent to 15 percent which is the fourth increase in the
last eight months and it is estimated that increase in export tax rebate will
notably increase profits of struggling Chinese enterprises. Earlier the export
tax rebate rate availed by textile industry averaged at 12 percent in 2008,
which has now touched 15 percent. The industry feels that increase in export
tax rebate rate is the most direct, covering all aspects and one of the most
benefiting policies in the stimulation package.
Other measures:
In addition, the state will provide credit support to enterprises
that have good fundamentals but face temporary operating and financial
difficulties. The government also promised to facilitate mergers and
acquisitions in the sector by granting preferential financial supports to
backbone companies when they conduct M & A.
The state will provide support to medium and small textile
enterprise; encourage guarantee agencies to provide credit guarantees and
financing services, aiming to alleviate burdens of textile enterprises.
At the same time the central government and local
governments will enlarge the acquisition volumes of cotton and raw silk from
the markets to help the industry, survive through the crisis at least in 2009.
The central government will set up a special fund to advance
the technologies for fiber spinning and weaving, dyeing and printing and
chemical fiber production, and support commercialization of certain high-tech
fibers.
USA:
U.S. Congress finally passed the stimulus budget, with a
total size of about US $790 billion on the night of February 13. It contains
the controversial Kissell amendment which seeks that all textiles and clothing
products contracted by the Department of Homeland Security (DHS) must be
produced from 100 percent American ingredients.
Some industry experts believe this step will help American
textile industry very positively and will help achieve Governments' primary
goal of creating jobs. The stimulus bill cleared Congress. While speaking about
the Kissell Amendment, Auggie Tantillo, Executive Director, American Manufacturing
Trade Action Coalition, stated that for every $100 million spent, 5000 textile
industry jobs will be generated or preserved.
Mauritius
Mauritius which was known for its Tourism and
textile business is facing adversities as global meltdown has unfavorably
affected these two industries. To counter this negative effect Government
released stimulus package of US $330 million in December 2008. According to Mr
Ramakrishna Sithanen, Finance Minister of Mauritius, the US $330 million
stimulus package, has helped save 1,700 jobs in various sectors, including
textiles, which is one among worst hit sectors in the country.
