Cosatu declares quotas on Chinese textile & clothing
05 Sep '06
1 min read
Congress of South African Trade Unions (Cosatu) and its affiliates Southern African Clothing and Textile Workers Union (SACTWU) have announced quotas on textile and clothing imports from China on September 1, 2006.
General Secretary of SACTWU is of the opinion that quotas on Chinese textile and clothing products will help in generating more than 55,000 jobs in local textile industry.
Chinese imports had surged 480 percent in 2002 and this has resulted into the loss of 67,000 jobs in last four years with trade deficit of R23bn.
Several retailers have complained that if the quotas were implemented, their profit margin would decline.
On the other hand Cosatu replied that such condition would happen only when if retailers try to set higher profit margin which they used to enjoy from cheap Chinese imports.
According to SACTWU, after the quotas, new jobs will be generated, ailing industry will be revived and customers will proudly buy South African products.
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