Home / Knowledge / News / Association/Org / Brazilian textile sector reeling under import influx

Brazilian textile sector reeling under import influx

31
Oct '12
Mr Aguinaldo Filho
The Brazilian textile and apparel industry – among the top five in the world is reeling under the impact of two challenges – large scale imports and high labour and energy costs. These have created a cascading effect in the form of closures or factories relocating to low-cost near by countries.

As per figures from the Brazilian Textile and Apparel Industry Association (ABIT) the sector has around 30,000 in its fold and posted an annual turnover of around US $63 billion in 2011. It is also the second biggest employment creator in Brazil and represents 10.6 percent of all employees in the Brazilian manufacturing sector.

“The import surge of textile products and especially of apparel is definitely one of main factors that impacted the performance of Brazilian industry in the past few years. Naturally, this surge could only have happened, due to our overvalued currency and therefore we cannot consider it as a fair competition”, informs Mr Aguinaldo Diniz Filho, President of ABIT.

He adds, “At the same time we had an increase in production costs especially in items such as electricity and labor, factors not directly controlled by the manufacturers and therefore harder to absorb and remain competitive”. 

In 2009, Brazil imported textiles and clothing worth $2.69 billion and $767.07 million respectively, in 2010 it rose to $3.89 billion and $1.07 billion, in 2011 it further increased to $4.45 billion and $1.72 billion respectively and in the first nine months of 2012 it has reached $3.30 billion and $1.64 billion, respectively.

About government support to tackle the crisis, he says, “The Brazilian Government is aware of the problems faced by the Brazilian industry and they are working hard on a domestic competitive agenda. The necessary measures are not easy to create and implement and many of them will demand time to become effective.

“The Govt agenda is focused on the reduction of costs such as electricity, taxes, basic interest rates, bureaucracy, education and qualification and others. We have a free floating currency and therefore we do not manipulate to be artificially competitive, which differentiates us from our competitors”, he reveals.  

On efforts from ABIT to reduce impact of the twin challenges, he explains by saying, “We are working closely with our government. In the short term, we believe that the most important measurers are trade remedies actions to fight against unfair and illegal trade practices.

“In the mid to long term, we believe that the systemic competitive conditions in Brazil will be less disadvantaged allowing us to compete in a more balanced and fair manner with foreign manufacturers, he winds up by saying.  

Fibre2fashion News Desk - India


Must ReadView All

NRF cautions USTR against additional tariffs on PRC goods

Apparel/Garments | On 26th Jun 2019

NRF cautions USTR against additional tariffs on PRC goods

The US National Retail Federation (NRF) recently urged the Office of...

Adverse measures may shut down textile units, Pak PM told

Textiles | On 26th Jun 2019

Adverse measures may shut down textile units, Pak PM told

Representatives of the Pakistani textile and garment export industry...

Indian grocery stores, traders want level-playing field

Retail | On 26th Jun 2019

Indian grocery stores, traders want level-playing field

Representatives of the associations of grocery stores, traders and...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

GST has levelled the playing field to an extent

Headhonchos, Indian fashion industry

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

Mukesh Agarwal & Rajesh Agarwal, Madhuram Fincap Pvt Ltd

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Cem Erdogrul,

Cem Erdogrul

Turkey-based Temsan Air Engineering is one of the leading manufacturers of ...

Mark Tokuhara,

Mark Tokuhara

Japan-based FitJoy, a shoe brand for women, has been in the footwear...

Marcus Hardelauf,

Marcus Hardelauf

Germany-based Textechno is one of the leading manufacturers of testing...

Mark Brill, Birmingham City University (BCU)

Mark Brill
Birmingham City University (BCU)

<div>A technological breakthrough could see people getting messages about...

Andreas Lukas, Andritz Nonwoven

Andreas Lukas
Andritz Nonwoven

With forces in engineering and process development, Andritz Nonwoven...

Michaela Griggs & Peggy Schulz, Barco Uniforms

Michaela Griggs & Peggy Schulz
Barco Uniforms

Founded in 1929, Barco Uniforms started as an apparel company for beauty...

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Pranav Mishra, Huemn

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant &amp; Nandita are known for being inspired by...

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

Leave your Comments


June 2019

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

news category


Related Categories:

Advanced Search