African competitiveness potential greatest in textile and apparel inputs, report says
May 18, 2009
World Trade\Interactive
An International Trade Commission report released last week finds that sub-Saharan African countries have the greatest potential to be competitive in the production of cotton yarn, fabric and other textile and apparel inputs. As required by a 2008 law extending the Andean Trade Preference Act, the ITC conducted a review to identify such inputs that can be produced competitively in beneficiary SSA countries through new or increased investment or other measures. According to an ITC press release, the report’s findings include the following.
• Cotton yarn, cotton knit fabric, denim fabric and, to a lesser extent, cotton woven shirting fabric appear to have the most potential for competitive production in SSA countries. Cotton is the primary fiber currently used in the production of yarn and fabric in SSA countries and is grown in large quantities in the region.
• SSA countries also have the potential to competitively produce certain niche textile items, including organic cotton yarn and knit fabric used for T-shirts, certain wool woven fabrics, hand-loomed fabric of cotton and silk, African print fabric, and yarn and knit fabric made of specialty manmade fibers.
• SSA countries produce some products that appear best-suited for local or regional markets, including woven fabric for uniforms, blankets, bed sheets and towels; acrylic yarn; cotton fabric for cotton bale wrap and cotton picking bags; and knit fabric for mosquito nets.
• SSA production of textile and apparel inputs has declined recently in the face of increased competition from Asian producers. New or increased investment or other measures could assist the industry in maintaining or expanding current production and export levels of these inputs and increase the potential for production of some new products.
• SSA countries face numerous and substantial challenges in their production of yarn, fabric and other textile and apparel inputs. As a whole, SSA countries have an insufficient apparel base through which to develop and sustain upstream production in yarn, fabric and other inputs. SSA countries also face severe challenges with their infrastructure that raise the cost of existing production and also deter significant new investment in the capital-intensive textile industry.
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