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Cablegate: Information On Textiles and Apparel Production

VZCZCXYZ0003
RR RUEHWEB

DE RUEHTO #1233 2921438
ZNR UUUUU ZZH
R 191438Z OCT 07
FM AMEMBASSY MAPUTO
TO RUEHC/SECSTATE WASHDC 8106
INFO RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS MAPUTO 001233

SIPDIS

SIPDIS

STATE PLEASE PASS USTR/CMILLER
COMMERCE FOR ITA/OTEXA/MDANDREA
STATE FOR EEB/TPP/ABT/GCLEMENTS

E.O. 12958: N/A
TAGS: ETRD KTEX MZ
SUBJECT: INFORMATION ON TEXTILES AND APPAREL PRODUCTION

REF: STATE 114799

1. The information below is keyed to the questions in
reftel, requesting information on textiles and apparel
production and employment for Mozambique. Data was provided
the Mozambican Ministry of Industry and Commerce, and assumes
a 25.45Mtn to 1 USD exchange rate.

2. FY 2006 data:

-Total industrial production: $1.341bn
-Total textiles and apparel production: $5.60mn
-Textile/apparel share of host country imports:
$56.6m (2.2pct of ttl imports)
-Exports in textiles and apparel to the U.S.:
$0.7mn
-Total manufacturing employment: n/a
-Total textiles and total apparel employment:
1245 workers (est)

3. FY 2007 (1st Semester):

-Total industrial production: $957mn
-Total textiles and apparel production: $2.49mn
-Textile/apparel share of host country imports:
n/a
-Exports in textiles and apparel to the U.S.:
$0.2mn
-Total manufacturing employment: n/a
-Total textiles and total apparel employment:
1396 workers (est)

4. Additional Information:

a. There is only one apparel producer exporting from
Mozambique. The producer does struggle with pricing due to
international competition; however, the larger hurdles are
logistics and non-tariff barriers. There are no Asian
investors involved in local production.

b. The U.S. and EU restrictions on certain exports of
textiles and apparel from China have allowed the one existing
apparel exporter to survive.

c. The GRM hasn't implemented any safeguards on Chinese
textile imports.

d. The GRM has no policies in place to deal with dislocated
workers in the sector.

e. As the sector is so small, global competition has had
little effect on local labor conditions, although the private
sector as a whole has sought a more flexible labor law.

f. The Mozambican government is attempting to improve the
business environment and the USG is working closely with the
Mozambican government on issues such as infrastructure,
bureaucracy, value-added goods, import-export times, etc.
The private sector is also very involved, working with the
Government on the business environment. Post does think that
in the long-term Mozambique will successfully improve its
business environment, however not likely soon enough to
rescue the nearly-dead textile and apparel industry.

g. Mozambique is a partner in AGOA; AGOA has not had a
significant impact on the competitiveness of Mozambique,s
textile and apparel industry.

h. In general, Mozambique is not competitive in the global
textiles/apparel sector.
Jones

© Scoop Media

 
 
 
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