The long-awaited agreement between the South African government and China, for stopping imports of cheap clothing and textile to arrest the decline of domestic industry, is to be finalized soon, announced the Trade and Industry Deputy Minister Rob Davies, yesterday.
The agreement would be similar to that which was signed between European Union (EU) and China, earlier this year, he added.
The deal involved an agreement by China to stop the growth in imports of 10 Chinese textiles and clothing products between 8 percent to 12.5 percent each year, till the end 2008.
Cheap Chinese imports have been caused the decline of the industry resulting in 55,000 joblosses, since 2003.
When China was admitted to the WTO in 2001, a safeguard for domestic trade was put in place. This involved temporary re-imposition of quotas on Chinese clothing and textile imports.
But government said that it could have harmed its export of basic commodities to the lucrative Chinese market and is engaged in the talks for an amicable outcome.
Davies said a strategy is on the cards to consolidate part of the domestic market lost to Chinese imports.
Gearing up to upgrade the technology, in order to enhance local competitiveness, is one of them.
