Union officials from the clothing, textile and footwear sector are blaming the government for the massive increase in Chinese imports since 2003, and calling for protective measures like those implemented by the European Union and the United States.
In 1994 South Africa was a signatory to the World Trade Organisation (WTO)/Marrakech General Agreement on Tariffs and Trade (Gatt) and subsequently began to reduce import duties on clothing.
Southern African Clothing and Textile Workers’ Union (Sactwu) spokesperson André Kriel says the government’s decision to reduce tariffs faster than required by the WTO robbed the industry of extra time to restructure in order to be more competitive.
In 2003 and 2004 Chinese imports increased by 72% and 75% respectively year on year, while South Africa’s import tariffs for both these years stood at 40%, well below the WTO requirement of 66% in 2003 and 52% in 2005.
Last week a resolution demanding quotas on Chinese imports was adopted at a meeting in Cape Town by the International Textile, Garment and Leather Workers Federation’s Africa Region (ITGLWF-Africa) attended by union officials from a number of Southern African Development Community countries.
In addition to calling on governments in the region to introduce trade safeguards against Chinese imports, it calls for greater consultation regarding trade policy with unions and employers’ organisations, and to work with unions to modernise the sector.
Chinese imports in the sector rose from R2-million in 2002 to R3,5–million in 2003, an increase of 72%. Last year they rose as high as R6-million, an increase of 75%.
ITGLWF-Africa regional secretary Thabo Tshabalala says the WTO agreement allows for safeguard measures that would last for three years, and could be instituted if a country’s industries are at risk. He says that is certainly the case, as 55 000 of South Africa’s 160 000 workers in the sector have lost their jobs since the surge of Chinese imports began in 2003.
In Lesotho 13 000 of the 50 000 workers in the clothing, textile and footwear sectors lost their jobs between August last year and June this year, while those still employed regularly face working short-time.
“In Swaziland companies are on short-time for a month or two at a time and workers are not paid. These countries do not have programmes like the Unemployment Insurance Fund,” says Tshabalala.
Employers’ associations have come out in support of the union’s resolution, with some arguing that quotas should have been implemented in 2003. They reiterated the importance of reviewing the role of the industry bargaining council, claiming that the council was forcing small businesses to shut down.