An Analysis of the Tariff Structure of the South African Clothing Industry

G van Zyl and C Wardle

Studies in Economics and Econometrics, 1996, vol. 20, issue 2, 73-85

Abstract: This article addresses the negative and positive implications of the protective tariff structure of the South African clothing industry on local manufacturers.The research suggests that the tariff protection has had negative effects on manufacturers and the total economy. The rebate on imported textiles used by companies that export clothing erodes the protection of the textile industry, as well as constituting an unfair advantage to companies that can afford the initial expenses to start an export programme. The tariffs on both textiles and clothing dramatically increase the end price to the consumer. They also tend to create an anti-export bias in the industry. The policy measures in terms of tariffs have tended to favour production for the domestic market, thus creating an “inward” looking industry. A more export-oriented approach must be adopted in order to give the consumer a better deal as well as to build on those areas where the industry can compete effectively. The opportunity for growth of exports in the upper and middle income clothing niche will likely outstrip the opportunities provided by the growth in the domestic market, which is already covered predominantly by domestic manufacturers. South Africa’s clothing industry has proven itself a worthy competitor in these areas as opposed to low income clothing which can be provided more efficiently and effectively by international low-cost producers.

Date: 1996
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DOI: 10.1080/03796205.1996.12129095

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