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Viewing cable 07ABIDJAN1017, 2006 COTE D IVOIRE TEXTILE STATISTICS, ANALYSIS

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Reference ID Created Released Classification Origin
07ABIDJAN1017 2007-10-03 16:55 2011-08-24 16:30 UNCLASSIFIED Embassy Abidjan
VZCZCXRO5666
RR RUEHMA RUEHPA
DE RUEHAB #1017/01 2761655
ZNR UUUUU ZZH
R 031655Z OCT 07
FM AMEMBASSY ABIDJAN
TO RUEHC/SECSTATE WASHDC 3587
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHZK/ECOWAS COLLECTIVE
UNCLAS SECTION 01 OF 02 ABIDJAN 001017 
 
SIPDIS 
 
SIPDIS 
 
State pass to USTR Carol Miller 
State pass to /EEB/TPP/ABT Gary A. Clements 
Pass Commerce/ITA/OTEXA Maria D'Andrea 
 
E.O. 12958:  N/A 
TAGS: ECON ETRD KTEX IV
SUBJECT: 2006 COTE D IVOIRE TEXTILE STATISTICS, ANALYSIS 
 
REF: SECSTATE 114799 
 
1.  (U) Cote d Ivoire - 2005 statistics on textile sector, as of 
2005 (the last year for which detailed statistics are available): 
 
-- Total industrial production was USD 3.4 billion for 2005. 
-- Textile and apparel's share in overall industrial production is 
5.77 percent 
-- Textile and apparel's share of total Ivorian imports: 0.77% 
-- Textile and apparel's share of total Ivorian exports: 2.10% 
-- Exports of Ivorian textiles and apparel to the U.S: USD 203,653 
(2005) and USD 428,496 (2006) 
-- Total employment in the textiles and apparel sector: 5,108 
-- Percentage in total Ivorian industrial employment: 2.94% 
 
Source: National Institute of statistics- 
 
2.  (U) In 2006, according to the National Institute of Statistics, 
production of textiles fell 39.5%, due in large measure to Asian 
competition.  The majority of Ivorian textile production is divided 
between African print "wax cloth" production (3. 5 million meters 
per month) and "fancy wax cloth" (higher end African print fabric) 
production (1.3 million meters per month).   A small quantity is 
produced and exported for jeans manufacture. 
 
3.  (SBU)  In answer to questions posed in para 5 of reftel, on 
September 20, 2007 Econ LE staff met with Jean Ferbert, Director 
General of the textile firm TEXICODI, which produces 80 percent of 
the country's "fancy" grade wax cloth.  LES and Ferbert discussed 
Ivorian textile sector issues, including foreign competition, the 
role of China in the international textile/apparel market, possible 
government actions to improve competitiveness of the industry, how 
AGOA could help, and the future of the industry. 
 
-- Concerning foreign competition, Ferbert said that the Ivorian 
textile sector is facing unfair competition from Asian countries 
like China and India through counterfeit designs of African-print 
cloth.  Ferbert also alleges Chinese firms "dump" their wares, given 
the massive discrepancy in the price of imports versus local prints; 
locally-made fancy wax "pagnes" (cloth for African-style clothing) 
can be more than 50 percent more expensive than the Chinese 
equivalent.  Ferbert asserted that Ivorian textile companies cannot 
compete with cheap Asian (largely Chinese) imports, especially as 
production costs (fuel, taxes) continue to rise.  Ferbert also 
expressed concerns about the sale of smuggled textile products 
(again, largely Chinese origin) from Nigeria, Togo and Benin through 
the porous borders of the North on which import duties are not paid, 
again giving them an advantage over locally produced goods.  Ferbert 
mentioned the growing market for second hand clothes as a threat to 
the local industry. 
 
-- Regarding the role of China in the international textile/apparel 
market, Ferbert said that the Chinese textile industry's strategy is 
to control the upstream cotton business, particularly the weaving 
and spinning sector, in West Africa so as to hedge against the 
possibilities of trade disruptions, such as dumping or safeguards. 
He cited the instance of the Malian textile company Comatex, which 
was acquired by a Chinese company. 
-- Responding to measures taken by the government to increase 
competiveness, Ferbert said that the government implemented 
protection of textile design and copyright to combat counterfeiting 
with the printing of the manufacturer's name on the product and 
registration of the industrial design at the Ivorian Office of 
Intellectual Property (OIPI). Despite these measures importers 
continue to inundate the Ivorian market with counterfeited textile 
products.  Ferbert also suggested lowering factor costs (i.e. energy 
and water) as potentially effective means to improve 
competitiveness. 
 
-- Concerning AGOA, Ferbert said better access to the U.S. market 
could help support the local textile manufacturing sector and 
support local jobs through sales of local print "pagnes", 
compensating the ongoing loss of regional market share to Asian 
competition. 
 
-- Regarding the future of the textile industry, Ferbert expressed 
optimism saying that the country has the potential to revitalize the 
textile sector.  He said Cote d'Ivoire possesses one of the best 
quality cotton fibers in West Africa, fiber control labs as well as 
the best designs, colors and variations for local prints ("fancy 
wax") and well-maintained textile factories, despite the effects of 
the five-year old political crisis.  Judicial system reforms to 
better protect intellectual property as well as unspecified fiscal 
support measures would help the sector regain its footing. 
 
4. (SBU) Post has not heard of governmental efforts, either 
 
ABIDJAN 00001017  002 OF 002 
 
 
nationally or in conjunction with the West African Customs Union, to 
impose safeguards or other trade remedies to curb the growth of 
Chinese exports.  Post has also not seen governmental efforts to 
address workers displaced by foreign competition. 
 
NESBITT