Forget textiles, ties with China more important stresses official
20 Oct '05
2 min read
Political and trade relationship was most important for the Government on long terms basis than saving grace of the country's clothing and textile industry that could not sustain the rising demands of global competition, advised a high ranking government official to the wilting textile industry of the country, yesterday.
Iqbal Sharma, Trade and Industry Deputy Director-General informed that partnering with China would be a great opportunity as it was the fastest-rowing economy in the world, and ejoining it would be beneficial for the country as part of its global supply chain.
However, he commented that leveraging this would require 'some initiative and creativity.'
The South African textile industry has lost 20,000 textile between 1995 and 2003, when China joined the World Trade Organisation (WTO) with rights to free trade.
Since then, only about 6000 jobs have been lost and all the blame has been heaped on the cheap Chinese textile and apparel imports that has harmed the domestic industry of South Africa.
But, Sharma informed a Parliamentary hearing yesterday that according to an analysis, China may not be entirely blamed for this situation.
He added that South Africa could have gained from extended period of high tariffs and the protection that it enjoyed prior to its WTO membership.
He stated that Government was not convinced that restrictive trade practices would save the industry as it would remain in effect for a limited period.
Iqbal reaffirmed the Government's committment towards the textile industry of the country by stating that it would extend duty credit scheme and work for the development of a customised sector programme.
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