Trade unions welcome protectionism measures

16 Jul '09

2 min read

The Congress of SA Trade Unions (Cosatu) has gladly welcomed the increase in textile tariff as this move could protect the local market against cheap imports.

Cosatu said that increase in import tax on clothing from 40 percent to 45 percent would help local industries and to preserve jobs, which are in trouble due to imported goods.

At the two forums of the G20 member countries, they advised other countries not to implement protectionism measures in their respective countries, by imposing import quotas or hiking tariffs or favoring domestic suppliers.

In spite of the calls for avoiding protectionism, the developed countries are increasing the protectionist measures, said Cosatu. The economically rich countries are still subsidizing the local farmers which is proving harmful for the farmers in poor countries.

The President Mr. Zuma said that the protectionist measures by the rich economies will intensify Africa's woes.

In order to protect domestic clothing and textile industries, rich countries used the Multi-Fibre Agreement (MFA) for more than 40 years, which affected the industries of poor countries.

These developed countries continued to implement high tariffs, even after the termination of MFA in 2005, to reduce clothing and textile imports from poor countries.

The Union Federation said that protectionism is a lawful trade policy, within WTO (World Trade Organization) rules, which intends to protect infant or small developing industries, against cheap imports which could destroy jobs.

Cosatu urged the government to use tariff and local procurement policies and like measures in order to protect existing jobs within key labour intensive industries.

Fibre2fashion News Desk - India