Home / Knowledge / News / Textiles / 'Botswana textile sector relies on US & EU tax incentives'
'Botswana textile sector relies on US & EU tax incentives'
29
May '13
The textile and apparel exports of Botswana, a landlocked country located in Southern Africa, may continue to decline due to the withdrawal of tax incentives by the US and the EU under the Financial Assistance Policy (FAP) as the country is depending on preferential tariffs, according to a research report by the Botswana Institute for Development Policy Analysis (BIDPA).
 
The research report prepared by Mr. Roman Grynberg and Mr. Masedi Motswapong of BIDPA states that Botswana’s textile and garment industry has benefitted from trade preferences and it remains to be seen whether the sector can survive without such preferences.
 
Botswana established the textile and clothing industry during the period 1980-90 and the sector expanded rapidly as a result of the trade preferences available to it under the Southern African Customs Union (SACU) agreement, the Cotonou agreement and the African Growth and Opportunity Act (AGOA).
 
The research report states that the textile and garment sector of Botswana grew by making use of a number of policies including protective tariffs, quotas and export incentives. Furthermore, the preferential trade regimes put in place by the US, the EU and SACU were crucial to the economic growth and development of the country.
 
“The textile and clothing industry of the country did not perform well after the financial crisis in the US and the EU, which led to laying off of workforce by several Botswana firms,” according to the report.
 
In order to boost the growth of textile and apparel sector of the country, Botswana Government developed a special support program to resuscitate the industry. The special program set aside a total of P38 million during 2010-2011 period.
 
However, BIDPA research report states that whether the subsequent rise in textile and garment exports from Botswana can be directly attributable to the government subvention cannot be readily determined.
 
According to the report, if the Government wishes to further develop the textile and clothing sector, then the policies and interventions need to be put in place to secure the sector's productivity and competitiveness.
 
“Bostwana Government needs to first address whether the sector will survive the inevitable further erosion of trade preferences and if so, the interventions need to be revised and focused on those firms best able to survive in the longer term,” the report concludes.
 

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 24th Jun 2017

Applied DNA to tag cotton for 2017/18 US ginning season

Applied DNA, provider of DNA-based supply chain security,...

Apparel/Garments | On 24th Jun 2017

NPD Group launches Trend Tracker for apparel trends

Global information company the NPD Group has launched Trend Tracker,...

Textiles | On 24th Jun 2017

Cotton USA’s first innovation competition in UK ends

Cotton USA has announced the successful close to its first innovation ...

Interviews View All

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search