L'Economiste: Morocco to create new textile lines to face international competition

Morocco will create new textile lines to face international competition, said Wednesday Moroccan premier, Driss Jettou.

In an interview with the Moroccan daily "L'Economiste," the Premier said the kingdom will create "opportunity lines" in three branches: denim woven fabric, underwear and poplin.

The Prime minister pointed out that the kingdom is trying "to attract major international textile companies and help them integrate the Moroccan market" as "integration is the best means to face Asian competition" as is the case with the American "Fruit of the Loom" that invested US$ 162 million (nearly MAD 1,416 million) in two textile units in Skhitrate and Bouknadel to produce woven fabric destined to make tee-shirts, sweat-shirts and joggings.

"Our textile sector situation is not so bad and we keep great chances to be able to compete," he said as the Moroccan working force salary is only "1 to 2" compared to China.

Morocco should adopt a policy aiming at reducing tariffs to help Moroccan companies face Asian products that offer more interesting prices for their crude products, said Jettou noting that negotiations are underway with textile professionals to reach a decision on this issue.

Morocco adopts a policy aiming at encouraging international investment in textile sector. Earlier this month, three major international textile companies invested US$ 300 million in the kingdom creating 2,500 direct jobs.

Meantime, The European Union imported only 20 million cloth items from Morocco in Q1 of 2005 instead of 25 millions in the same period a year before, wrote Wednesday, the French newspaper "La Tribune."

The paper warns that the new taxes Beijing will apply on June 1 are not going to save textile-exporting countries, explaining that these taxes will raise clothes prices by hundreds of dollars, but will only shallowly reduce the gap between China and its competitors, including Morocco.

The paper reveals that European imports of Chinese T-shirts in Q1 of 2005 have skyrocketed 187%, adding this upsurge can reach up to 600%.

Morocco applies custom tariffs as high as 80.25% on Chinese imports.