South Africa Trade and Industry Minister Mandisi Mpahlwa has stated that the government will not invoke World Trade Organisation (WTO) rules to stop importation of cheap Chinese clothing into South Africa, Sunday.
He was no convinced that such an action (under Article 16 A of the WTO) be taken against China, even though huge pressure had built up in South Africa for the government to go for safeguards on the issue of clothing and imports from China.
However, he agreed to review tariffs on raw materials for the troubled sector, particularly yarn, which was used by local textile and clothing makes that would reduce input costs.
Labour had recently made a submission to the government calling for it to invoke Article 16.
Speaking at the Parliamentary briefing he said, "Our view is that the relationship is actually much broader, and it is growing. Much broader than just clothing and textiles even as China sources a lot of things from South Africa, and that is a trend that is growing."
The Democratic Alliance (DA) reacting to the Minister's announcement to review tariffs on raw materials said on Sunday that the steps taken were "far too little, far too late".
Robert MacDonald, spokesperson said in a statement: "The Department of Trade and Industry's handling of the growing crisis in the textile industry has so far been hopelessly inadequate and incredibly slow."
"In addition, reports of appeals to the Minister from theSA Textile Federation going unanswered are indicative of a ministry frozen in crisis," he argued.
