Trade and Industry Minister Mandisi Mpahlwa contends that globalisation does not always lead to success or accumulation of wealth but also to a development that produces negative results.

Minister Mpahlwa was speaking at the 9th national congress of the South African Clothing and Textile Workers Union (SACTWU) at the Cape Town's Convention Centre on Friday.

"It produces successful countries as well as marginalized and poor countries, it takes on board those who have got the skills required by globalisation, leaving behind those who do not have the skills to participate meaningfully in the new global environment," he said.

The minister said this was a situation facing South Africa in which a category of people particularly black does not find it easy to move from one job to another.

However, he said government intended to take exceptional measures to address this matter.

He said the increasing global activity of firms and convergence of global economy created massive opportunities for internationally competitive economies and also brought challenges for both economic and political management.

Furthermore, he said this had profound implications for trade policy making globally based trade rules and disciplines even more important.

As a result, he said the freedom of the state to intervene in the domestic economy became limited.

"Whatever you do domestically, you have to make sure that it is in keeping with the rules that govern the global trade environment," he said.

Minister Mpahlwa mentioned the little investment-taking place in clothing and textile industry as one of the worrying trends currently in the sector.

He said the challenge was to promote the kind of investment that would give this country a competitive urge and advantage.

"We need to come up with more creative ways to address the challenges of this sector without undermining what has worked well in respect of the other sectors of the economy," he said.

He appealed to all South Africans to partner with government to find innovative ways to deal effectively and sustainably with the challenges facing the clothing and textile industry.

"For example, there are opportunities for organized labour to own and operate enterprises."

For this purpose, he said government through the department of Trade and Industry provided a range of enterprise support, finance and measures to help realise the objectives set for sectors and enterprises.

He said United States retailers were keen to source from this country because of its logistical, design, markerting, good labour standards and environmental control measures required to adapt to the ever changing demands of the fashion industry.

Minister Mpahlwa said because of these shortfalls, South Africa was unable to exploit market access and export opportunities provided by trade agreements and arrangements such as the African Growth and Opportunity Act.

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