SA stance on Chinese exports gives domestic textiles edge

A shortfall in Chinese exports of textiles and clothing to South Africa will give the country a definite advantage.

This is because the South African government has imposed quota system on Chinese exports, which will be effective for two years "� from September 28 this year to September 2008.

The new quota system is based on an agreement between the two governments to review the position of the domestic clothing industry, besides creating jobs.

As South Africa is largely dependent on imports for clothing and textiles, India can enter the market in a big way. Countries like Sri Lanka have already geared up to tap the new opportunity as the Lankan High Commissioner in South Africa alerted Sri Lankan Economic Development Board.

In South Africa, the quota system has been introduced on a short notice to the importers, and it covers about 200 products, including children's wear, schoolwear, bed sheets, track suits and under garments.

The importers, as per reports by local newspapers, are eyeing alternative markets like Bangladesh, Vietnam, Cambodia and Eastern Europe in order to meet the anticipated high demand for textiles and readymade garments during the forthcoming Christmas and New Year season.

It has been estimated that the local manufacturers will not be able to meet the demand for some time "� may be up to two years.

Experts said India could well compete with the countries on South African importers' radar on the price front and tap the huge opportunity if the industry and the government, working in tandem, rose to the occasion.

According to a South Africa Textile Industry Export Council estimate, 90 major companies in that country are also engaged exports.