SA rules out safeguards to stem Chinese textile import flood

Plan B involves anti-dumping action JOY ORLEK THE SA government has rejected safeguards as a means of stemming the ‘tsunami’ of Chinese textile imports flooding the local market. In a statement released last Friday a spokesman confirmed that safeguards were not the way to go, alluding to a separate deal struck with the Eastern super-power involving a voluntary restraint on its exports to South Africa. No further details of this dispensation, originally announced by the Chinese ambassador to South Africa, have been revealed and industry sources suspect that China may have pre-empted the official announcement as a political manoeuvre. The news delivers a severe blow to the Textile Federation which has been hard at work preparing and submitting safeguard applications on a range of products. Three were submitted last year, the first in July by the SA Clothing and Textile Workers’ Union (Sactwu), which covered a wide range of goods from clothing to made-up textiles and footwear. The Federation has since submitted two further applications – one on bed linens and a second on curtains - each of which demonstrate the surge in imports and disruption to local industry on a far greater scale than any other areas. “We’re busy with several others, but they won’t be submitted in view of the latest announcement,” Textile Federation executive director Brian Brink told FTW. Industry sources believe the safeguard route has been scrapped for political reasons, as was the case in the US and European Union, both of which have chosen not to take the safeguard route. The remaining option will be to proceed with anti dumping action, says Brink, which is less of a political hot potato. “The information required for an anti dumping action is very similar to a safeguard application, except that with safeguards price isn’t a consideration. For anti- dumping the disparity between the price in the export market and what is charged in the local market is what determines its validity. It’s a bit more clinical,” said Brink. “We’re busy changing our focus and a lot of hard work lies ahead.” The only other means of fighting the Chinese ‘invasion’ is for local industry to become more efficient and to work on domestic issues, says Brink. Chief among these is the need for Customs to take a more robust stand against under-declaration on imports to evade duties and VAT.