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Apparel sector seeks competitive stand against China
Jun '10
The Executive Director of Apparel Manufacturers of South Africa, Johann Baard opined that, the government of South Africa should formulate such trade and industrial policies, which would create a level playing field for South African apparel producers to compete with their rivals in mainland China.

Baard was addressing a workshop organized by the International Labour Organization (ILO), for stakeholders. Apparel industry is an imperative industry for the country as it is the only job generator industry that plays a key role in poverty alleviation. Hence, a level playing field should be created between domestic manufacturers and their competitors in China, he added.

Moreover, customs fraud should be restrained immediately, in order to allow the sector to acquire competitive stance at a global level. A fierce debate has been going on with respect to the currency policy of China since years, specifically in the US and Europe. The Central Bank of the country keeps the yuan artificially low, with an objective to prop up an export boom.

The practice of keeping the currency artificially low offers more competitiveness to the goods and services of the country and affects other exporters and local manufacturers adversely. Therefore, in this regard, the global community should take measures against China to change its currency policies, underlined Baard.

Substantial steps should be taken up by the government against unfair policies as they are proving to be perilous for the survival of the South African garment industry, he concluded.

Fibre2Fashion News Desk - India

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