Mr. Robert Antoshak, President of Globecot Inc., presented a report on the outlook for textile trade. Mr. Antoshak reported that after years of explosive growth the world textile industry is moving into a slow-growth period, and the elimination of the MFA quota system is having significant consequences for global trade.
Cotton yarn and cotton fabric are mostly made in Asia, which buys the most textile equipment globally. The largest apparel importers are in the developed world, in particular in the US and the EU, whereas the largest apparel exporters are in the developing world, in particular China (Mainland).
Significant increases in textile and apparel imports and decreases in tariff rates have contributed to lower import prices in developed countries. The MFA quota elimination is fostering the development of significant overcapacity in textile production worldwide and will likely harm smaller, less competitive suppliers. A push for the return of MFA-like trade barriers may come from unlikely parties.
The MFA elimination is causing a significant shift in sources of supply; slower growth in global consumption of textiles will put even more pressure on the industry pipeline, and force firms to be more efficient.
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The International Cotton Advisory Committee (ICAC) is an association of 41 governments of countries with an interest in cotton. The Secretariat of the Committee publishes information related to world cotton production, supply, demand and prices, and provides technical information on cotton production technology.
The International Cotton Advisory Committee
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