Tunisian textile industry at risk due to anarchic importation and smuggling

The Tunisian textile industry’s local production that currently accounts for only 20 percent of the goods available for purchase on the local market is threatened by uncontrolled imports and smuggling, said Habib Hzami, general secretary of the general federation of textile, clothing and leather and footwear at the Tunisian General Labour Union (UGTT), on Sunday.

He added that more than 300 companies operating in textile, clothing, leather and footwear were closed during the last five years and about 40,000 employees lost their jobs due to anarchic importation without respecting the quota principle.

The proliferation of smuggling and parallel trade today has created threaten to the survival of several companies in the sector, including those producing mainly for the local market.

Hzami also said that Tunisia’s textile industry continues to survive thanks to exports , which translates exports worth 1.2-1.6 billion euros, or four per cent of Tunisia’s total exports.

Tunisian textile industry that has approximately 1,000 fully exporting companies of which 50 percent of companies operating in the sector show over three percent annual growth.