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South Africa:Opposition seeks textiles safeguards |
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2005-3-12
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Imposing trade barriers to restrict textile imports to the tune of 7.5 percent as of the previous year’s volume, would help the struggling textile industry of South Africa, the official opposition Democratic Alliance (DA) suggested on Thursday.
The remark came in light of the recent closure of 24 top textile companies and also as the leading clothing firm - an Iconic company of Western Cape —Rex Trueform factory expecting to shut operations soon.
DA shadow trade minister Enyinna Nkem-Abonta informed the news conference at Parliament stating: "In terms of World Trade Organisation rules, member countries can cut back the increase in Chinese imports provisionally if they pose a serious threat to the country''''s entire market.
"It is absurd that South Africa has watched thousands of jobs being lost, but neglected to use this mechanism," he added.
Calling for a level playing field to be offered by the Government, Nkem-Abonta said: "South African firms should not be restricted to buying cotton from the Southern African Development Community only. Firms should not be forced to pay a 30 percent import duty on cotton imported from elsewhere.”
"SADC cotton is currently far more expensive than cotton from the northern hemisphere, and is often not of as high a quality."
He also called for the Government to allow textile firms to obtain partial labour law exemptions.
Speaking about the benefits of export processing zones (EPZ) he added that Government should create export processing zones (EPZs) in which firms can apply for exemptions from certain taxes and labour laws in order to produce cheap goods exclusively for export.
"EPZs in Mauritius, Nigeria, Vietnam and China, among others, have proven to expand production and provide employment opportunities to unskilled workers,” he said.
"In line with the DA''''s general policy on increasing employment, all firms should be encouraged to employ more workers through the provision of incentives, such as a tax deduction of 150 percent of the first R2000 per month of every new employee''''s salary for the first five years."
Accepting trade liberalization, the official opposition acknowledged that the country''''s textile firms were developed under a highly protectionist structure of tariffs and need to be given incentives to make the adjustments demanded by government''''s policies. |
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