In Argentina the textile sector expanded its output by a moderate 5.5% while clothing rose by only 0.6%. But export growth was a buoyant 18.2% in textiles and 13.2% in clothing. Brazil’s exports rebounded after an unexpected setback in 2006. But the increase was due entirely to a rise in textiles and to strong growth in sales to Indonesia, Pakistan, Mexico, Venezuela and South Korea .Sales to the USA and the EU, meanwhile, were poor. Colombia’s exports grew for a fourth year and surged by 47%. But sales to the USA fell, enabling Venezuela to become the largest export market with a 55% share. Mexico continued to struggle as US importers shifted orders to China and other low cost Asian countries .EU output stabilised in 2007, despite a drop in exports and an increase in imports. EU imports from China rose by 14.3% to Euro27.5 bn. At this level they accounted for as much as 34.3% of the EU import market, leaving Turkey a distant second with 16.0% .The industry in China progressed in 2007 despite quota restrictions on its exports to the USA and the EU. Output and investment expanded as exports rose by over 19%. In Hong Kong domestic exports fell as production was shifted to mainland China. Outward processing arrangements (OPAs) in Hong Kong are also likely to lose their relevance once safeguard quotas are eliminated in the USA at the end of 2008 .In Japan there was a 5.3% upturn in export demand in 2007 as a result of higher sales to the USA, the EU, South Korea and Vietnam. As for imports, 83.9% of the Japanese clothing import market in 2007 was supplied by China alone. In South Korea, exports regained some ground in 2007 thanks to an increase in textile sales. In Taiwan, clothing exports fell and so did clothing output. But textile production was up.Source: