Chinese Textile Quotas in South Africa Prove Counter-Productive
Source: Monsters and Critics.com, UK Date: 2007-03-30
A year after slapping quotas on foreign textile imports in a bid to counter low-cost competition from China South Africa is realizing it may have shot itself in the foot.
The quotas have, in some cases, hurt the manufacturers they were intended to protect because they have been unable to import fabric from abroad, Business Day newspaper reported Thursday.
The restrictions have put pressure on some businesses, even threatening jobs, according to the paper.
Reacting to the unintended consequence, the state-controlled International Trade Administration Commission had in a recent notice announced it would consider requests for higher import quotas for specific products, the paper reported.
The categories of products in question included some firemen’s and sporting gear.
The textile industry and unions had been consulted about the amendments and importers would be required to demonstrate their commitment to the local industry before availing of the new limits, Business Day reported.
Two-year quotas on Chinese textile imports were agreed last year between President Thabo Mbeki and Chinese Premier Wen Jiabao in a bid to give some breathing space to beleaguered South African manufacturers.
At the time, the measures were fiercely resisted by South African retailers.
