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    Guangdong Shoe Industry Should Be Familiar With WTO Rules And Suffer Less.

    2008/4/16 0:00:00 10406

    Footwear Industry In Guangdong

    Yesterday was the first day of the Canton Fair, and the exhibitors and the number of booths were the largest in the past. However, the textile and clothing exhibition area of Liuhua exhibition hall was not popular. Even exhibitors said, "one American has not seen one day". Under the background of the subprime mortgage crisis, RMB appreciation and labor costs rising, labor intensive industries such as textiles, clothing, shoes and toys have encountered enormous problems. The head of a clothing company said: "this is the most difficult year for the textile and garment industry in 30 years." Wu Zhenchang, President of Guangdong Footwear Association, said that footwear export enterprises are now facing many factors, including anti-dumping investigations, resource problems, RMB appreciation and export tax rebates, while the labor contract law has limited impact on the labor cost of footwear export enterprises. Wu Zhenchang said that the shortage of resources is one of the bottlenecks in the development of enterprises in the Pearl River Delta. At present, many factories are facing great challenges in the production environment and energy supply, especially in the effective supply of electricity. Wu Zhenchang said that the appreciation of the renminbi at the moment is actually a devaluation of the euro against the US dollar. The footwear industry in Guangdong still has price advantages, but the EU has continued anti-dumping duties on Guangdong footwear. Enterprises in particular need the state to respond to legal aid against anti-dumping investigations, so as to avoid enterprises losing their knowledge of WTO rules. Regarding the impact of the implementation of the labor contract law, he said that although footwear is a labor-intensive industry, large footwear enterprises do not affect production costs because of the labor contract law.
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