United Kingdom year-end review 2023: Improvement in waiting

With struggling textile trade during the first of half of 2023 and 40 per cent businesses found clueless about country’s net-zero policy, the UK remained in need of improving its sustainability efforts.

Trade in H1, 2023

The UK’s 2023 began with clothing imports reaching £1.384 billion in January and then declining to £1.294 billion in February 2023, falling 11.51 per cent short of previous year’s £1.443 billion. As a constituent of imports, UK’s textile fabric dropped 4.94 per cent to £462 million from £486 million in February last year; also declining from January’s £469 million. The story was same in case of textile fibres imports as well, with y-o-y decline from £45 million to £39 million. In exports, UK clothing was down from £323 million in February 2022 and £306 million in January 2023 to £296 million in February 2023.

In the first quarter, while the UK’s total clothing imports amounted to £4.137 billion, inclusive of £1.432 billion worth of fabric and £110 million of textile fabric, the UK’s exports of clothing declined to £943 million against £955 million when compared to Q1, 2022.

In April 2023, clothing imports were at £1.161 billion (£1.459 billion in March) and registered a 20.91 per cent decline from £1.468 billion in April 2022; textile fabric imports fell 15.18 per cent to £430 million against £507 million in April 2022 and £500 million in March 2023; and fibre imports stood at £30 million, down from £46 million in April 2022 and £36 million in March 2023. For the same month, clothing exports stood at £262 million, down £30 million, y-o-y and £77 million short of exports in March 2023.

In the first half of 2023, UK’s clothing imports reached a cumulative total of £7.838 billion and witnessed a steep decline of 25.36 per cent in July at £1.245 billion. There was a corresponding 12.17 per cent decline in textile fabric imports at £476 million, and in fibre imports which declined to £34 million. These declines were attributed to various factors including rising cost of living that pressurised household budgets, and Ukraine war-induced supply chain disruptions and higher prices for raw materials. The UK consumer became more cautious about their spending.

More required to do on Net-zero

The British Chambers of Commerce (BCC) released findings of its survey on the eve of the UN Climate Change Conference (COP 28) in Dubai. The survey of 1,000 businesses, mostly SMEs, revealed two-fifths of companies in the UK do not know any details about the nation’s net zero target, including 7 per cent (13 per cent in 2022) not being aware of the government’s target at all, and 33 per cent (48 per cent last year) being aware but not in knowledge of any details. Around 24 per cent felt postponement of various targets will have negative impact while 31 per cent expected positive impact on their businesses, indicating an environment of business uncertainty about the impact of UK’s net-zero policy changes announced in September. Survey’s overall findings revealed wide divergences between smaller and larger firms in their understanding of and preparedness for net zero policy.

The UK-South Korea FTA

During the visit of President Yoon Suk Yeol in November, January 22, 2024 was announced as the date for first round of negotiations between the UK and South Korea in regard to bilateral FTA, with further rounds taking place later on. The negotiations will build on improving the existing agreement, and working on a new ‘rules of origin’ chapter that reduces the costs which businesses face while exporting and recognising existing and future supply chains. There will a modern and comprehensive digital chapter to future proof their trade relationships using digital technologies. The emphasis will be on ensuring free and trusted cross-border data flows, avoiding of unjustified data localisation requirements and prohibition of customs duties on electronics transmissions including content.

Investment in sustainability

In August, an investment of £6 million was announced to support UK’s fashion and textile industry as it integrates more sustainable and responsible practices. The UK’s £21 billion worth of fashion and textile industry is responsible for more than half a million jobs in the country, and globally causes 8 per cent and 20 per cent greenhouse gas emissions and wastewater, respectively. The funding has been awarded by the Natural Environment Research Council, the Arts & Humanities Research Council and Innovate UK – all parts of UKRI (UK Research and Innovation). The investment is a key part of UKRI’s £15 million Circular Fashion Programme.

ALCHEMPro News Desk (WE SB)