Chinese quotas not extended
This week the People's Republic of China denied South Africa's request for an extension of the quotas which have been in force for two years. In terms of the agreement reached, China would curtail its exports on certain clothing and textile products to South Africa from the beginning of 2007 until the end of December 2008. An extension of the quotas would only be implemented if both parties agreed thereto.
In response the South African government has set up a task team dedicated to curbing illegal imports of clothing and textile products. According to reports this is due to the fact that persons illegally circumvented the quotas when they where still in place using various means and effectively undermining the effectiveness of the quotas on Chinese clothing and textile products. The South Africa Government is apparently also fast-tracking support measures in order to bring relief to the clothing and textile sector.
Despite these reports at this stage one can only wait and see what response will come from all parties who may have an interest in this matter.