Clotrade & retailers joint statement on Chinese imports

09 Sep '06

3 min read

At a meeting of representatives of the clothing industry and DTI in Cape Town, Clotrade and the retailers made the following statement:

Clotrade and retailers who are signatories to this statement believe the gazetted plan with respect to quotas from China will result in chaos and enormous disruption for the industry.

We wish to make it clear that the parties to this statement have differences on the principle of quotas and we respect each other's rights to differ in this regard.

However, we need to make it clear that Clotrade and the retailers jointly and unreservedly reject this quota plan. We object in the strongest terms to the process that has been followed. No consultation has taken place with Clotrade nor with the retailers on the possible consequences and no impact study has been conducted on the quota or the implementation process of the quota.

Should a proper impact study have been done and a proper consultation process have been followed, with business stakeholders and other experts providing input, the following considerations, amongst others, would have been apparent:

- The lack of capacity of the local industry to meet demand, given the massive downsizing and restructuring that has taken place in recent years;
- The negative impact on the consumer in general terms, and particularly in relation to the welfare of poorer and unemployed consumers in South Africa who are desperate for cheaper clothing;
- The impact of not taking lead times and committed orders into account;

More Edcon News...