WHAT IMPACT DID TRADE LIBERALISATION HAVE ON SOUTH AFRICA'S CLOTHING AND TEXTILE INDUSTRY? Study Sources 3A, 3B, 3C and 3D and answer the questions that follow - NSC History - Question 3 - 2019 - Paper 2

Liberalisation refers to the process of reducing or eliminating restrictions, such as tariffs, allowing for a freer movement of goods across borders. In the context of globalisation, it enables countries to trade their goods without significant hindrances, fostering international trade relations.

The Marrakech Agreement facilitated the importation of cheap clothing and textiles into South Africa. This led to an influx of foreign products, resulting in local industries struggling to compete. Many factories experienced a decline in demand, which in turn caused significant job losses as workers were retrenched due to the reduced operational capacity.

The two countries identified in the source are 'China' and 'Pakistan'.

The headline conveys a sense of urgency and concern regarding the significant number of job losses and factory closures within the clothing and textile industry in South Africa.

The trade liberalisation led to severe job cuts in the clothing and textile sector, disproportionately affecting female workers. Many women, who formed a substantial part of the workforce, were retrenched, leading to economic hardship for their families and increasing the vulnerability of women in the local job market.

The imports from China resulted in significant job losses in Hammarsdale, as local textile giants were forced to reduce their workforce. This change weakened the community's economic stability and led to increased unemployment.

In the 1990s, Hammarsdale experienced a growing economy with thriving job opportunities available to the residents.

In the 2000s, the economy of Hammarsdale began to decline, resulting in job losses and socio-economic challenges for its residents.

The introduction of 'free trade' led to increased imports of cheaper textiles, putting local businesses under strain. Many factories closed down, resulting in job losses that left families without income. The community faced growing unemployment and economic instability, which severely affected their livelihoods.

The two ways South Africa's clothing and textile industry was able to compete with global manufacturers include: (1) improving the quality of products and (2) enhancing availability through better supply chain management.

According to Patel, the programme benefited companies by (1) providing loans to facilitate capital upgrades and (2) offering incentives that helped enhance competitiveness in the industry.

The government's intervention provided crucial support for the clothing and textile sector in KwaZulu-Natal by ensuring access to capital for upgrades, which enabled the sector to innovate and remain competitive. Additionally, it helped in creating thousands of jobs, enhancing the local economy.

The source is useful as it highlights the DTI's role in revitalising the clothing and textile sector, providing insights into government strategies for economic support. It also illustrates how the DTI facilitated financial support, which was critical for addressing issues like worker retrenchments.

Both Sources 3C and 3D note the significant job losses due to the influx of cheap textiles. Source 3C details the direct consequences on workers in Hammarsdale, while Source 3D discusses the broader implications for the industry and responses that aimed to mitigate these impacts.

Trade liberalisation significantly impacted South Africa's clothing and textile industry by increasing the volume of cheaply imported goods. This led to considerable competition with local manufacturers, many of whom struggled to survive. As a result, factories closed, and thousands of workers lost their jobs, leading to economic hardship within communities. Government programs aimed at bolstering the strategic competitiveness of local industries emerged, yet the detrimental effects of job losses remain a pressing concern.