South Africa warns of failure in quota on Chinese textiles

South African Deputy President Phumzile Mlambo-Ngcuka warned that the government may be forced to ask Chinese to increase the quota of clothes and textiles they export to South Africa if local manufacturers fail to meet demands, according to a report on Tuesday.

South African Press Association quoted the deputy president as saying that if local businesses fail to make the most of the quota agreement that government had reached with China, it would expire.

Addressing businessmen in Queenstown in the Eastern Cape province at the weekend, Mlambo-Ngcuka said the government had identified textiles as one of the industries to revive economic growth and job creation.

Retailers were still pessimistic about the ability of local producers to produce enough clothes and textiles, especially ahead of the festive season, she said.

The deputy president said: "We are asking ourselves: Where are our people to fill the gap? We are unable to sleep because we are worried that shelves will be empty and people will not produce to the required capacity."

The recent decision of the Department of Trade and Industry to limit imports from China angered retailers who argued that it would drive clothing prices sky high.

But the government got the thumbs-up from labor unions who said the move would curb job losses in the clothing and textile sector.

Mlambo-Ngcuka said the government found itself faced with a dilemma as "we need to grow the manufacturing capacity of clothes and textiles that are made in South Africa".

South Africa decided to delay imposing planned quotas on 200 items of Chinese clothing and textile imports to January 1 from September 28 to take retailer concerns into account.

Source: Xinhua