China moves toward monopolizing non-quota apparel categories in both US & EU
04 Mar '06
8 min read
Today I am pleased to release at this forum a study showing just how problematic the issue of China and textile trade has become. NCTO has analyzed – for the first time – what has actually been happening over the last several years when both US and EU apparel categories have been removed from quota restraint. The conclusions are sobering and worth your further investigation.
The results can be capsulated in two words: 70 percent. According to 12 streams of historical data, including volume, value, the US market, and the EU market, the only logical conclusion that you can make is that China will take 70 percent of both the EU and the U.S. market once safeguards currently in place are removed.
Here are some of those historical results: Regarding the apparel quotas that were eliminated in 2002, China today has between a 67 and 74 percent share of the apparel import markets in the US and the EU.
In categories where China was removed from quota control in 2005 and where quotas were not reapplied, China has taken between a 39 percent and a 48 percent of the US and the EU apparel import markets. China's share, if it continues along the same historical path, will hit 70 percent by June 2007. In Japan and Australia, where quotas were never used, China has an import share in excess of 80 percent.
How much has the developing world lost in exports just over the last several years as a result - - over three billion dollars in exports. But that is only the beginning.
marketing@alchempro.com
