Market uneasy following ties with China CONCERNS IN the footwear industry in South Africa that the new diplomatic ties with mainland China will increase the matter of dumping which has affected them in recent years, are to be taken up by the Department of Trade and Industry.
Pretoria is now proposing steps to counter the dumping, which is the selling of goods internationally at a cheaper rate than exists in the home market.
According to Bahle Sibisi, director in charge of DTI's foreign trade relations, it is hoped that the new trade accord planned would be concluded before March when trade and industry minister Alec Erwin visits China.
He said the trade pact would provide ways of dealing with dumping, which was expected to increase with improved trade relations. China has been the subject in recent years of dumping complaints from SA industrial sectors, in particular the footwear industry. Early last year South Africa announced plans for import controls, affecting non-World Trade Organisation (WTO) members such as China, for a year to allow the local footwear sector time to compete successfully.
Now, however, China is preparing to join the WTO, says Sibisi. South Africa, meanwhile, enjoys a surplus in its trade with China, mainly with raw materials.
