Clothing and textile sector post-Chinese quotas

The South African clothing and textile sector has faced significant job losses and a decline in competitiveness following the end of the Multi Fibre Agreement in 2004, which allowed China to increase its global and domestic market share. While South Africa attempted to use import quotas from 2007 to 2008, these failed to reduce total imports as retailers shifted sourcing to other low-cost Asian producers. The document argues that the sector's struggles are driven by high labour costs, low productivity, and rigidities in the unionised workforce rather than imports alone. It suggests that further trade protection is unlikely to be effective and instead recommends non-trade industrial policy tools, such as skills development and capital upgrades through the Industrial Development Corporation, alongside a strategic shift toward high-end niche export products.

• The end of the Multi Fibre Agreement (MFA) in 2004 increased competitive pressures as Asian countries, specifically China, expanded their export capabilities. China's share of global clothing exports rose from 18 percent in 2000 to 34 percent in 2007.
• South Africa experienced a sharp increase in clothing and textile imports from China, rising from 16.1 percent of total imports in 1996 to 60.7 percent in 2008. This coincided with an estimated loss of 69,000 jobs in the sector over six years, representing a 39 percent decrease.
• Import quotas imposed on China between 2007 and 2008 failed to reduce South Africa's overall clothing and textile imports, as retailers simply shifted their sourcing to other low-cost Asian countries including Bangladesh, Malaysia, and Vietnam.
• South Africa's lack of competitiveness is attributed to labour costs being nearly double those in Asia, a lack of necessary technology and skills, and rigidities caused by a highly unionised workforce.
• The document argues against further trade protection, such as raising tariffs to bound levels, suggesting instead that the sector should utilize non-trade tools like the Industrial Development Corporation's Clothing and Textiles Competitiveness Improvement Programme (TCIP) and pivot toward high-end niche export products.

APA

South African Institute of International Affairs (2009). Clothing and textile sector post-Chinese quotas. https://saiia.org.za/research/sas-clothing-and-textile-sector-post-chinese-quotas/

Chicago

South African Institute of International Affairs. Clothing and textile sector post-Chinese quotas. 2009. https://saiia.org.za/research/sas-clothing-and-textile-sector-post-chinese-quotas/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Clothing and textile sector post-Chinese quotas |date=21 August 2009 |url=https://saiia.org.za/research/sas-clothing-and-textile-sector-post-chinese-quotas/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2009clothing, author = {{South African Institute of International Affairs}}, title = {{Clothing and textile sector post-Chinese quotas}}, institution = {South African Institute of International Affairs}, year = {2009}, month = aug, url = {https://saiia.org.za/research/sas-clothing-and-textile-sector-post-chinese-quotas/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }