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What Ails the Canadian Textile Industry?

What Ails the Canadian Textile Industry?

Write: Titian [2011-05-20]

Canadian textile industry is facing the heat, as low-priced Chinese imports seem bend the industry on its knees.

Further, the Government despite several representations to plug the unhindered flow of cheap apparel, garments, T-shirts, jeans, inner wears and many other products from the dragon country, remains unresponsive rubbing salt on the bruised spirit of the textile industry.

Matters have turned worse with the ending of the ATC or the Multi Fibre Agreement under the World Trade Organization that has its hands full currently, grappling the vexed issue of textiles exports from China.

Industry insiders demand the US and the EU like discriminatory action that places restrictions textiles and clothing imports from China, which the latter has been openly opposing in the world fora.

Apparel and textiles is the sixth largest manufacturing employer in Canada, and Montreal is the third-largest apparel manufacturing centre in North America, trailing only Los Angeles and New York, speaks eloquently of the industry importance it exudes.

Alex Dagg, the Canadian Director and Executive Vice President of UNITE HERE, a labor watchdog organization representing members working in the apparel, textile, laundry, distribution, hotel and food services industries, has been spearheading the fight for capping imports from China.

He fears that apparel and textile goods are also flooding the Canadian markets and its effect will culminate in workers going without jobs, unless Ottawa wakes up to fight back.

Dagg feels China's recent decision to abandon planned export duties on the rising tide of Chinese-made textiles flooding North American markets will result in thousands of job losses in Canada.

The latest new clothing import figures put out by the Canadian government show surprising surge in Chinese imports. Dagg cites the figures for the first quarter this year, imports of men's and boys' trousers from China went up an incredible 299 per cent, imports of brassieres are up 225 per cent, imports on women's and girls' trousers are up 125 per cent and underwear imports are up 68 per cent.

To protect their jobs, the U.S., Peru, Turkey and Argentina have already implemented safeguards. The Canadian government has the ability to do the same. However, it has not.

Now, where does Canadian textile industry move from here?

Take the case of Ravi Tharoor of Rieve & Andreine of Vancouver, a linen manufacturer, who has signed up with a Chinese associate to cater niche markets in North America.

His firm completes design work here, and sends it off to China to spin. When the product returns from China, the company supplies the product to five or six factories where final manufacturing is completed, informs Tharoor.

According to him, Canadian consumers want the best quality of goods at the best price and one has to find way how to deliver that.

So with the odds up, where Canadian textiles industry heads for, is any one? guess!