Govt mulls cap on Chinese textile imports to save jobs
15 Sep '05
1 min read
Largest economy of South America, Brazil faces threats of closures and job losses following six times increase in Chinese textiles and footwear imports, informed Ms Dilma Rousseff, Chief of Staff for President Luiz Inacio Lula da Silva.
This likely restriction will be put in place by September end, said Rousseff.
Speaking at a press conference in Sao Paolo, she said, "These, textiles and shoes, are the sectors most harmed by the Chinese. We must act cautiously given the characteristics of the relations between Brazil and China and the importance of that country in sustaining the dynamics of the global economy."
Figures presented by the Brazilian Industry & Trade Ministry convey that textiles and shoes imports from China shot up $128 million during January-July this year, compared to $23 million, during the same period last year.
Meanwhile, the Brazilian Textile Association (ABIT), and other industry associations have called upon the Government to limit shipments.
It is learnt that Industry and Trade Minister Luiz Fernando Furlan is planning to visit China this month end to convey Brazil's decision, Rousseff added.
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