Johannesburg, South Africa 6th Sep., six top chain stores issued a statement to strongly urge the South African government to abolish the restrictions on import of Chinese clothing and textiles, since this provision will greatly harm consumers interests, and retailers will suffer economic losses.
South African International Trade Administration Committee proclaimed restrictions on some Chinese textiles and clothing import on September 1. From September 28.2006 to December 31.2008, South Africa will restrict imports on 31 categories of textiles and clothing.
South African retailers figure that price of raw materials in South Africa is rather high,the local prices of textile products are 50% higher than other places. In addition, because many raw materials are lack of inventory, it is difficult to meet the retailers requirements. According to the South African retailers estimation, the prices of children's wear, winter clothing and other apparel will rise from 20 to 25%,if this restriction is implemented.
The statement also pointed out that the restrictions on Chinese clothing and textile products did not only affect retailers and consumers, the provision would cause enormous losses to the South African Revenue Bureau. It is estimated that by the end of this year, the South African Revenue Bureau may lose one billion rand (1 U.S. dollar 7.2 rand).
