Quotas to enable restructuring of local textile sector
20 Jan '07
1 min read
Quota implementation on Chinese goods will enable South African textile industry to rebuild itself and compete in international markets according to Ebrahim Patel, General Secretary of South African Clothing and Textile Workers Union (SACTWU).
China and South Africa agreed to an import restriction agreement, inked in June 2006, with consent from Chinese President Thabo Mbeki and Prime Minister Wen Jiabaso.
Import quantity concerning 31 types of goods will be restricted due to the agreement. As a result, retailers could turn to local producers to fulfill requirements.
Representatives of Government, retailers, companies and labour workers are forming a committee to check quota implementation, which will consider hindering factors and forward them to Minister Mandisi Mphahlwa if required.
A competitiveness plan negotiated by textile industry will support the restriction agreement. Upgrading of plants and equipment as well as improving human resource development are part of the plan.
Patel added that if the sector upturns production and retailers decrease mark-up on local products, prices will remain steady and consumers will not have to bear losses due to quotas.
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