Morocco's textile to lose 18% in production due to trade liberalization
Morocco's textile sector risks a 18% production fall, a 30% regress in exports and the loss of 40,000 jobs by 2010 if trade liberalization hazards are not addressed adequately.
The diagnosis was made this Friday by chairman of the Moroccan association of textile and apparel industries (AMITH), Salaheddine Mezouar, in the presence of 600 professionals and public and private partners meeting in Marrakesh.
The professional said Morocco, like other textile producing countries should move quickly to address problems entailed by trade liberalization.
A study conducted by international experts on the Moroccan textile industry also emphasizes the need for Morocco to face harsh competition caused by customs tariffs dismantling and China's membership in the World Trade Organization. Despite its numerous assets, Morocco ought to tap on the projected free trade agreement with the USA and modernize its domestic distribution network, the experts said.
Activating staff upgrade, technical and creative skills promotion and competence development in various branches of textile and garment industry were other recommendations made by the study.
Prime minister, Driss Jettou, who opened the conference said the sector is an essential element in Moroccan economy, as it comprises 1,600 industrial units, generates 10 billion DH of added value (around US$ 1 billion), provides jobs to some 200,000 persons and contributes 36% to the country's exports.
Jettou also expressed the government's support to the professionals' drives to renovate and improve the performance, flexibility, reactivity and adaptability of the sector. The government is also keen to spare no effort to build on Morocco's asset of proximity to Europe and will carry on its action to reduce energy costs to reach the level of costs practiced in competitor south Mediterranean countries, Jettou vowed.
He also surveyed measures taken so far to promote the sector, including fiscal incentives, the creation of a financial restructuring fund (FORTEX), supporting the upgrading of textile companies' competitiveness and setting forth financial tools by expanding foreign credit lines for all Moroccan Banks.