Shipments of woven apparel to the United States are even increasing in the last year with quotas. Apparel exporters are expecting a sharp decline in the free-quota period, however. .
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Korea exports of knitted apparel (HS chapter 61) were only down 0.39% in volume terms (kilos) in the first six months of the year, compared with a decline of 13.51% experienced in 2003. .
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Exports of woven apparel under chapter 62 decreased by 3.60% at the same time after falling 13.51% in the past year. .
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The Korean exporters are facing rising competition from low-cost countries due to higher demand from the United States, by far their primary market. .
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Shipments of woven apparel to the US were up more than 7% over the first part of the year while rising 4.20% in value terms at US$347 million. .
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Exports of knit apparel to the United States were down 5.13% in volume terms but only fell 1.19% in value terms at US$386 million. .
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Korean exports to the US are expected sharply falling as the quotas end beginning next year, since they were protected by US limits, until now. .
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Korea-located production on the other hand could resist more competition after it progressively focused on the higher end of the global market in the past years. .
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The major part of Korean apparel production was already relocated to low-cost countries in the past fifteen years as costs were progressively rising at home. Korean investments boosted apparel industries in South-East Asia or Central America, as a consequence. South Korea sold apparels to China and the European Union also. .
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China is the second largest buyer of Korean woven apparels; accounting for 17% of total exports in volume terms in the first half. .
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From a lower level, exports of knitted apparel to China are further rising, up 16% in value terms 2003 before growing by 15.80% in the first half of 2004. .
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Shipments of knit apparel to France were also very strong at the same time, up 32% in value terms in 2003 before increasing 21% in the first part of the current year. .
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Sales of woven apparel to Russia and more surprisingly to Vietnam are also relatively strong. .
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Source: fiber2fashion.com
Date:7/31/2004
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