Analyst claims WTO membership decimated South African shoe industry
17/10/2011
South Africa joined the World Trade Organisation in 1995, and, according to Mr Mbeki (deputy chairman of the South African Institute of International Affairs, and the brother of former president Thabo Mbeki), industries there were subjected to competition before they were ready to fend for themselves against cheap imported goods. He said in a recent interview that one consequence was the footwear industry in South Africa collapsing almost completely.
Figures from the South African Footwear and Leather Industries Association show that, in 1985, 78% of footwear sold in retail outlets in South Africa were locally made. By 2005, after ten years of WTO membership, the corresponding figure was just 17%.
“The idea was to make consumer goods cheaper for South Africans,” said Mr Mbeki. “But what is the point of having affordable shoes if you are unemployed?”
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