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Viewing cable 06ABIDJAN1133, COTE D'IVOIRE: TEXTILE AND APPAREL PRODUCTION

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Reference ID Created Released Classification Origin
06ABIDJAN1133 2006-10-06 17:27 2011-08-24 16:30 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Abidjan
VZCZCXRO2829
RR RUEHMA RUEHPA
DE RUEHAB #1133/01 2791727
ZNR UUUUU ZZH
R 061727Z OCT 06
FM AMEMBASSY ABIDJAN
TO RUEHC/SECSTATE WASHDC 2018
RUCPDOC/DEPT OF COMMERCE WASHDC
INFO RUEHZK/ECOWAS COLLECTIVE
UNCLAS SECTION 01 OF 02 ABIDJAN 001133 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EB/TPP/ABT THOMAS LERSTEN, USTR FOR FLORIE LISER 
(AF), ABIOLA HEYLINGER (TEXTILES), TIM STRATFORD (CHINA), 
COMMERCE FOR ITA/OTEXA MARIA D' ANDREA 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KTEX IV
SUBJECT: COTE D'IVOIRE: TEXTILE AND APPAREL PRODUCTION 
 
REF: A) STATE 138090 
 
ABIDJAN 00001133  001.2 OF 002 
 
 
1.  (U) Per REF A request, Post provides the following 
information on Cote d'Ivoire's textile and apparel 
production sector. 
 
2.   (U) The National Statistical Institute's (INS) Division 
of National Accounts (INSAE) provided the following 
statistics on total industrial production and total textile 
and apparel production: 
 
--  2004 Textile and Apparel Production: $61.1 million (2005 
unavailable) 
--  2005 Industrial Production: $1.0 billion 
--  2005 Total Production of Goods (i.e. non-services): 
$2.74bn 
 
3.  (U) EconChief and EconOff met with an executive of the 
Ivorian Employers' Association (UGECI, the association of 
major industries), the Director General of Uniwax, the only 
remaining producer of fabric in Cote d'Ivoire, and Cote 
d'Ivoire's delegate to the WTO to discuss the state of the 
textiles and apparel industry in Cote d'Ivoire.  Eager to 
discuss the impact of the ongoing political crisis as well as 
that of the influx of Chinese-made cloth and apparel, the 
group provided the following statistics: 
 
 
-- Textile and apparel exports are minimal.  Uniwax exports 
approximately $1m annually in high-end African print fabrics, 
mainly to Italy and Spain.  Exports of apparel are de 
minimis; Ivorian apparel production itself is at the 
semi-artisanal level, with no large or medium-scale industry. 
 
 
-- Textile and apparel imports are substantial.  While 
authorities and industry were unable to provide statistics on 
overall levels, imports of both, overwhelmingly from Asia and 
particularly from China, dominate the market. 
 
-- Exports of both textiles and apparel to the U.S. are at 
near de minimis levels.  Wrangler has a small facility here 
employing 50 workers (down from a high of 750) stitching 
apparel using cloth imported from Asia, but overall volume 
and value is very low.  Textile and apparel exports to the 
U.S. are a very small fraction of the $1m in approximate 
aggregate exports. 
 
-- Total manufacturing employment in both textiles and 
apparel stands today at approximately 4000, vs. some 10,000 
in 2002, prior to the commencement of civil conflict and the 
division of the country.  Figures for total manufacturing 
employment were unavailable. 
 
4.  (U) Uniwax's DG and UGECI's representative stated that, 
while perhaps 20% of the decline in Cote d'Ivoire's textile 
and apparel manufacturing sector can be attributed to the 
impact of political problems, a full 80% can be ascribed to 
the impact of Asian, especially Chinese, competition.  Of the 
three textile mills operating in Cote d'Ivoire as of 
mid-2002, one is closed, one is operating at 15-20% capacity, 
and the third is operating at 80%.  Remaining textile 
production feeds primarily into Uniwax's mill. 
 
5.  (U) Cote d'Ivoire is the 4th largest cotton producer in 
Africa, but only a tiny percentage of its raw cotton is used 
as a raw material in Ivorian industry.  Uniwax uses 6,000 
tons of raw cotton annually, down from 20,000 tons pre-2002. 
This stands in contrast to overall cotton production of some 
100,000 tons annually. 
 
6.  (SBU) Chinese competition is widely understood to be the 
chief cause of local industry's decline.  Interlocutors cited 
advantages Chinese manufacturers have that local production 
cannot match, such as state-supported corporate structures, 
subsidized energy costs, low-to nonexistent worker benefits, 
and labor costs as low as 1/4 of those paid in Cote d'Ivoire. 
 They also asserted that Chinese apparel frequently enters 
Cote d'Ivoire fraudulently, via underdeclared shipment values 
and distributed through informal, untaxed networks, escaping 
the 18% VAT and 20% customs fees.  Chinese apparel imports 
are so cost-competitive that they are significantly cutting 
into the sales of second-hand clothing, long the biggest 
source of clothing for the mass market. 
 
7)  (U) Remaining cloth production, increasingly at the 
high-end of the market, is projected to stay competitive. 
 
ABIDJAN 00001133  002.2 OF 002 
 
 
Its high quality and frequent design changes are difficult 
for copycat Asian fabric makers to follow. 
 
8)  (U) Interlocutors do not see even the possible resumption 
of AGOA (suspended in since January 1, 2005) as sufficient to 
revive the fortunes of Ivorian textile and apparel 
manufacturers in the face of Asian competition.  Absent a 
"miracle," even slashing developed world cotton subsidies, 
according to interlocutors, would not spur growth in the 
textile/apparel industrial sector. 
Valle