During this period, EU market share for all major suppliers declined sharply, with the largest suppliers including Indonesia, Turkey, Tunisia, India, Bangladesh and Morocco, declining by 50%..With respect to those apparel categories for which quotas were removed in 2005, mainland China’s market share in the EU import market increased from 27.1% to 48.4%. Chinese prices declined sharply, falling by an average of 31.7%. The analysis concludes that if mainland China continues in 2006 at the same rate as in 2005, the country could increase its market share to 70%..For those seven large apparel categories covered by the EU-China Bilateral Agreement on which quotas were reintroduced in 2005, mainland China’s market share was capped at 25.4% in 2005.. Mainland China’s exports were thus able to surge (increasing by 261% during the year) while the imposition of safeguard measures could however limit the impact on exports of developing countries. Chinese prices again dropped sharply, dropping by 21.7% in these safeguarded categories..If no restraints are placed on the current trends of mainland China’s exports of apparel products, it will become the monopoly supplier of apparel products worldwide, and production in other countries will fall dramatically. Only safeguard measures prove to be effective barriers to Chinese exports of apparel products..Turkey has submitted in March 2006 to the WTO negotiating group on non-agricultural market access calling for negotiations on the harmonization of import tariffs for textiles and clothing and the elimination of trade-distorting practices in the sector.Indonesia, India and Pakistan have denounced the Turkish proposal. However, Tunisia and Mauritius whose textile producers are facing hard competitive challenges from mainland China supported the Turkish Proposal. . However, EU is prepared to decrease tariffs on textiles as close to zero as possible, arguing that it would like its industry to be competitive with mainland China. Indeed, the EU has long considered that it could compete on high-end textiles but that it was prevented from such competition because of high tariffs maintained by some countries .Source: yarnsandfibers.com”
Date:4/6/2006
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