22 June 2006
The clothing and textile sector has in recent years been experiencing severe
pressures as a result of rising imports from China, accentuated by competitive
weaknesses of the sector. In response to the industryâs petition for relief,
government undertook to seek measures to provide the sector with temporary
protection in the form of import restrictions.
In light of the friendship and strategic partnership between South Africa
and China, government undertook discussions with China with a view to finding a
bilateral solution. In the spirit of close economic co-operation, the two
governments have reached an agreement, which addresses the concerns of the
sector. The solution involves import limitations on 31 product categories,
until the end of 2008. These restrictions form part of the Memorandum of
Understanding (MoU) on Promoting Bilateral Trade and Economic Co-operation,
which also deals with issues relating to technical assistance, investment and
trade promotion, as well as customs co-operation.
The MoU was initiated as part of the package of agreements signed during the
Chinese Premierâs visit. Further details will be made available upon entry into
force, once respective domestic legal procedures have been completed.
Enquiries:
Henriette van der Merwe
Tel: (012) 394 1640
Cell: 082 572 8184
Bongani Lukhele
Tel: (012) 394 1643
Cell: 083 291 8680
Bethuel Mnguni
Tel: (012) 394 1647
Cell: 083 624 8888
Donavan Jacobs
Tel: (012) 394 1641
Cell: 082 751 1078
Please address all your media enquiries to: mediarelations@thedti.gov.za
Issued by: Department of Trade and Industry
22 June 2006
