Trade minister Mr. Mandisi Mpahlwa on 06 February said, South Africa and China have agreed in principle a pact to regulate the import of cheap Chinese clothing and textiles, but were still working to finalise a deal. COSATU, South Africa's powerful trade federation has demanded the government should take action to stem the flow of cheap Chinese imports, which analysts say threaten the industry in South Africa. “There has been political commitment on the side of both governments to come up with an agreement,” trade minister Mr. Mandisi Mpahlwa told reporters in Cape Town. He said a draft agreement was on the table but that some details had to be worked through. South African labour unions have threatened to boycott clothing retailers and they have been accused of stocking cheap Chinese clothes over locally-made goods. They say the imports have cost loss of thousands of jobs, especially in Cape Town where the sector is one of the region's most important employers.
An estimated 150,000 jobs have been lost in South Africa's textile industry over the past 10 years. clothing imports from China are estimated to have surged 110 percent since 2003. Mr. Thabo Mbeki, President said that that the two countries had reached a deal to regulate the import of cheap Chinese clothes and textiles. “We have already reached an
|
| agreement with China to protect our clothing and textile sector,” he told parliament. But Mr. Mpahlwa said negotiators had established the need for an agreement and both sides would now consult with their various role players, including labour and business. He said, “We have reached agreement to come to an agreement to manage some of the pressures facings the clothing and textile (sector),” he said. South African trade officials said on Friday they had been in talks with China on a regulatory arrangement involving import quotas as part of a strategy of accelerating South Africa's economic growth to at least 6 % per year from the current 4 %. Mr. Mpahlwa also said the government would push ahead on talks with India to secure a free trade agreement but that a similar pact with China ‘was not on the cards’ at present.
Fiji government to negotiate a better deal with Australia for the garment industry Mr. Ramesh Solanki President of the Fiji Textile, clothing and Footwear Council said this is needed because the industry is already in a decline and will deteriorate further if Australia and China sign a free trade agreement, as planned. Mr. Solanki said they want to see rules of origin relaxed from 50 to 25 percent in order to become more competitive. Under the SPARTECA trade agreement, the Fiji clothing industry must use 50 % locally-manufactured fabric but Mr Solanki says this hampers their efficiency. 
|
|
