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Brazil'S Textile Industry Is Facing &Nbsp Crisis; It Can'T Compete With "Made In China".

2012/1/26 11:22:00 17

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Brazil Textile Industry Contends With Crisis

According to Brazil's St Paul State Journal recently reported:

St Paul

In the area, Antonio, a 77 year old businessman, was wearing a worried look.

He is a business owner of a local textile enterprise in St Paul.

His company is facing unprecedented competitive pressure since its establishment in 1972.

However, this is only a small microcosm of the textile crisis in the region.

St Paul has the largest textile production base in Brazil.

Decades ago, the textile industry's output value once accounted for 80% of the total GDP in the region.

Nowadays, a lot of cheap and fine products are available.

Chinese textiles

The influx has seriously weakened the competitiveness of Brazil's local textiles in the region.

At present, the output value of the textile industry in this area is less than 25% of the total GDP in the region.

Unemployment is an important reflection of the textile industry crisis in the region.

According to the statistics of textile workers union, last year, the textile industry in the region reduced 2021 jobs altogether.

Alfred, chairman of the St Paul textile industry alliance, said that Brazil's strength was too strong, which severely weakened the market competitiveness of its products.

Domestic energy prices and labor prices have risen sharply, which has greatly increased production costs.

In the face of the influx of cheap Chinese textiles, Brazil

textile

No competition.

In view of the current situation, the government of Brazil has announced that it is about to change the taxation system on imported textiles, that is, the levying of ad valorem taxes from the current implementation of the system.

Levying taxes is a fixed tariff on specific products.

this

Measures

The aim is to crack down on "unfair competition" from cheap textiles abroad, to protect the development of our textile industry and to increase employment opportunities.

The measure should come into effect in two months.

Brazil Finance Minister Guido man gage also revealed recently that the government has already prepared relevant legislation and will apply to the world trade organization to obtain a temporary protective measure for 10 years in order to protect the development of its textile industry.