According to the recently released 'World Trade Report' by WTO, the abolishment of global quota has created a more beneficial trade environment, but the international textile and apparel trade only increased 5 percent in 2005, for the slow economic growth and the influence of currency exchange fluctuation in developed countries.
China's textile and apparel export increased 21 percent, slightly higher than 2004, accounting for 24 percent of world textile and apparel trade, setting a new record. The share could come up to 31 percent if excluding the interior trade between EU members.
The wave of international price change was less than previous expectation, and China's textile products only constituted a modest descending pressure to EU and the US markets.
The reason for re-adopting quota was the so-called 'threat of market disturbance', including disturbing the production and employment in the importing country.
But according to the data in the two important markets since 2000, the output of textiles and apparel section and employment level showed structural downtrends. Quantity limitation could defer these trends but no way to stop them.
In the coming few years, global textile trade growth mainly depends on the consumption and expenditures in the two major markets. Though in the past three years, the growth of US textile and footwear expenditures was higher than other parts of the world, it was an indetermination if this trend could continue to exist.
The re-imposed textile and apparel quota limited the expansion of China's textile products in the US and EU markets, but the annual quota growth is still higher than the gain of import demand.
Therefore, China's import shares from the two important markets are expected to continue rising.
Fibre2fashion, News Desk - China
marketing@alchempro.com
