South Africa May Cancel Restrictions On China'S Textile Imports

South Africa will not be able to extend restrictions on Chinese textile imports after December 2008, a senior official said on Wednesday.

Tshediso Matona, director of the South Africa Trade and Industry Bureau, said: "we have not received any application (extension of quota) because we expect the quota to expire."

In January 2007, South Africa introduced quotas for imports of textiles and clothing from China, which was taken after trade unions complained that cheap products hurt local manufacturing units and caused unemployment.

In a forthcoming report, Matona said that measures will be taken to affect this restriction, although the increasing number of imports from China has decreased.

So far, the government has not been appealed for extending quotas.

The South African clothing and textile workers union (SACTWU) initially complained that it wanted to reduce imports of textiles from China.

Cheap imports from China have caused thousands of workers to lose their jobs. South Africa's textile and garment industries are striving to improve their competitiveness in the face of declining exports.

The abolition of quotas may reduce the burden on clothing retailers in South Africa and allow them to buy cheaper products in China to help offset a sharp decline in consumer spending.

Yang Jing: editor in charge