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THE GLOBE AND MAIL TUESDAY JONE TO 1969. More aid wanted
Shirtmakers losing ground to imports
By LAWRENCE DWORKIN
The short-term outlook for Canada's shirt industry re- mains disappointing despite three recent government moves of assistance, accord ing to R. H. Bain, president of the Canadian Shirt Manufac- turers Association.
He said in an interview that Canadian manufacturers, who have been losing ground to imports, will not be able to re- gain their position unless more stringent measures are taken to reduce impo ts, espe- cially from low...age Asian countries.
Last year, about 30 per cent of the 2000_dozen woven cotton and synthetic_fibre shirts sold in Canada were imports, a sharp jump from 1966, when imports accounted for less than 25 per cent of .sales.
In 1968, synthetics ac- counted for about 60 per cent of unit sales and imports of synthetic fibre shirts climbed to $9,113,000 from $4,639,000 in 1967. Synthetics are the fast- est-growing segment of the in- dustry as they represented only 40 per cent of sales in 1967. Their domination of the rarket is expected to con- tinue.
On the average, imported shirts retail for about $4 each while domestic shirts sell for about $8.
Mr. Bain, who is also presi- dent of B.V.D. Co. Ltd. of
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Montreal, said the recent gov- ernment program to allow shirt manufacturers a draw- back on duties paid on im ported materials is only partly successful.
Under the program, if 75 per cent of the material used in shirts is of Canadian origin, then the manufactureris enti- tled to 100 per cent drawback on the duty he paid on the 25 per cent of imported fabric.
For each percentage point decrease in domestic con- sumption, the drawback rate drops the percentage points, so if a shirt maker imports 50 ner cent of his material, he is
itled to a 50 per cent re- an on the duty.
Most major manufacturers are not expesina ‘ʼn rêceive full benefit of the program De- cause as a result of the fast- ion-conscious buyer, about 5 per cent of the syntheile material used is imported.
"There are many shirting materials not available in. Canada and manufacturers have to look outside of the
rics are destined to be used in country, especially when fab-
high-fashioned shirts.
"It would be much more helpful to shirt manufacturers tent was set at 50 per cent if the figure for Canadian con- -
rather than at 75 per cent."
The industry feels that if 'the material being imported is of a kind not manufactured in Canada, it should be allowed to enter duty free, as is the case in the machinery indus- try.
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The recent budget also be- nefited shirt makers when it reduced the amount of duty paid on imported fabrics. Prior to the budget, the duty on polyester-cotton cloth, the most widely used fabric in shirts, was 28 per cent and 18 cents a pound. This was re- duced to 25 per cent and 15 cents a pound.
"The net result is about a 4.1 per cent reduction in the tariff on the average.'
However, lutics on im- ported shirts were also re- duced to 25 per cent from 26.5 per cent on synthetic fibre shirts and to 22.5 per cent from 24 per cent on cotton shirts.
While the duty on imported shirts is 25 per cent, impor- ters do not have to pay a poundage charge as required when importing material.
One area where manufac- turers hope to benefit is in › stricter enforcement of quotas negotiated with other coun- tries on the number of shirts each country can export to Canada.
On April 3, surcharges were imposed against øree and South Korea of 524 á tuzai violation of their negotiated quotas.
The industry is trying to get a global quota established whereby Canadian manufac- turers would be assured a cer- tain portion of the market while the other countries would have to compete for the remaining portion.
The industry feels that about two-thirds of the market should be preserved for Cana- ili dian manufacturers if it is to W survive.
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Artute XIX