Textile industry wants surcharge against unfair competition

The Brazilian textile industry brought to the International Labour Organization (ILO) a debate that considers ' crucial ' for the survival of its producers, proposing temporary surcharge against unfair competition on the market in the sector. The target this time is not only to China and other Asian producers, but also the African competition, increasingly organized with international capital, especially Chinese.
"The way is to impose temporary penalties for those who practice social dumping, environmental, labor and social security," says the President of the Brazilian Textile Industry Association (Abit), Fernando Pimentel, which participates in the International Labour Conference.
"The products are global, the modes of production have to be each time more global", says the Executive. "We are disputing the markets in a scenario in which there is no competitive balance between the regulatory framework of the production cost. The ILO and the World Trade Organization (WTO) need to discuss it. "
For Pimentel, the projections for the textile and apparel sector in Brazil, which grossed $ 56 billion in 2012, justifies greater reaction on the part of Brazil in the international arena. According to Abit, those imported have 30% of national consumption in the area of raw materials (yarns, fabrics, filaments).
In the area of production is the greatest risk, with the imported product having multiplied by five its participation in the national apparent consumption, reaching 15 percent of the market. In major retailers, the percentage reaches 35%. "If nothing is done, we will arrive in 2025 with only 40% to 45% of the market of clothing ', says Pimentel.
In addition to the action on the international scene, the textile industry will propose to the next Government the creation of a competitive tax regime for the making, aiming to reduce the tax load, assist in formalizing and induce in the consolidation of the segment.
It is still considered more necessary because everything indicates that the national industry will be only half the cooking market. For Abit, the special scheme to help tailoring create large groups to serve the domestic market and export platform.
According to the President of Abit Brazilian textile production and clothing was weaker in the second quarter, after good sales between January and March. According to Pimentel, on the eve of the start of the World Cup the consumer confidence index worsened, as is also bad indicator between entrepreneurs.
In the first quarter, the apparel segment achieved sales growth of about 4 percent, while textiles fell 4%. Already in April and may, sales of clothing fell and they cut the gain from the beginning of the year. In June, orders also have decreased, or are stagnant.
In the case of textiles, says Pimentel, sales dropped so much because of the tough competition of imported as well as the cost of energy. The President of Abit account that some companies have chosen to offer their energy in the market and reduce some production, because they earn so much as producing. "The production is not giving any spectacular profit, on the contrary," he said. According to the Executive, in processing cost, excluding raw materials, the energy comes to represent 28%.