Strong rand squeezes out SA hopefuls

'Our export market is dying' ECHOING THE sentiments of other industry players is Wendy Wilson, senior manager of clothing and textiles at export credit insurer Credit Guarantee. “AGOA aims to give a major boost to the clothing manufacturing industry in South Africa, but this is only possible when both the importer and the exporter benefit from the trade,” says Wilson, “and this isn’t the case with the rand at its current levels. “When it was possible to import garments at R8.50 or even R9.00 to the dollar it was profitable for America to trade with us,” says Wilson. “But our export market is dying as countries are able to import the same products from China at R3.00 per garment.” China has also predicted that they will ultimately supply 80% of the world’s clothing and textiles and South Africa will not be the only country affected by this. America has gone to the World Trade Organisation hoping to implement quotas protecting its local market. “Geographically China has divided its country into various regions, each manufacturing different clothing elements. For example, while one area will only manufacture socks, another might only manufacture ties,” says Wilson. “Whole areas are gearing up to produce one garment and this is making China even more competitive in the export arena with the result that competing countries are taking the knock.” Locally, retailers are trying to assist manufacturers but it’s a question of costing and we live in a price-driven market, she added. Chinese clothing exports to US surge 546% in January EXPORTS OF major apparel products from China into the US market increased by an average of 546% in January 2005 over January 2004, according to recently released Chinese Customs data. The figures, quoted by the just-style.com website, also highlight the fact that Chinese prices have fallen by as much as 45%. The largest export increases were in cotton knit shirts and trousers, which were up 1 836% and 1 332% respectively, according to the website. China shipped nearly 27 million cotton trousers in January, up from 1.9 million in January 2004, when China was still under quota control. The country also shipped 18 million cotton knit shirts in January, compared to 941 thousand knit shirts in January 2004.