Clotrade & retailers joint statement on Chinese imports
09 Sep '06
3 min read
- The negative impact on manufacturers and jobs in not taking into account the inclusion of fabric in the quota (in relation to CMT's and exporters as well); - The negative perception of the South African clothing and retail businesses' credibility and South Africa's governance being questioned; - The uncertainty of SARS and ITAC to administer this process; - That the quota will open the way for unscrupulous dealers and encourage a culture of dishonesty; - The inaccuracy of the data, nature of products covered, and fact that the quota goes down to sub-headings; - The unfair and inadequate method of allocation of quota that fails to take account of changing business patterns and needs, new entrants to the market, as well as seasonal peaks and valleys.
Whilst the proposed quotas have been put in place with the supposed intention of increasing growth and jobs in the industry – the quotas will actually have the exact opposite effect. Jobs will be lost and growth stunted.
The focus and combined resources of all stakeholders has to shift to being on the real enemy – illegal, under-invoiced and suspect trade practices.
For these reasons, we call for the urgent and immediate:
1.Withdrawal of the gazetted plan on quotas to stop the chaos and the damage
2.Conducting of an impact study, by independent experts, jointly agreed by the parties, with accurate data and comprehensive input by business
3.Following the impact study, proper consultation, in particular with the affected business parties bearing in mind there are also many other affected business parties, such as indirect suppliers to the industry and small and emerging businesses that have to be heard.
marketing@alchempro.com
