Government to abet textiles

12 Aug '06

2 min read

Textiles in this region experiencing tough times as European markets opened to Asian clothing exporters last year.

Moroccan textile exports plummeted after European quotas favored African producers.

This showed Morocco's reliance on Europe, which seizes 92 percent of its textiles, and raised fears for the future of a sector that accounts for 40 percent of manufacturing exports and employs 40 percent of the manufacturing work force.

Textile sector represents 4 percent, of gross domestic product in a country struggling with unemployment and poverty.

Due to Morocco's proximity buyers in Britain, Spain and France have begun imports lately.

The sector now has the capability to export 40 billion dirhams worth of clothing within five years, up from just over 24 billion dirhams worth in 2004.

To encourage the industry, the government has offered financial help for new investments and has also slit duties on imports of raw materials and accessories.

A free trade zone in Tangier will offer cheaper transit to Europe and the US along with the opening of a new port nearby which will allow companies to import material and re-export finished clothes free of tax.

There is apprehension that Chinese companies may soon set up store in Morocco to be closer to European clients and take advantage of the US import quotas that Morocco won recently under a free trade agreement.

Since western shoppers are gazing at who prepared the clothes and under what conditions, mandatory health insurance, rigid labor rules and administrative delays, all make Morocco very uninviting destination.

More Textiles News - Morocco...