World Textile and Apparel Trade and Production Trends, Edition 1 2006 - Market Research Reports

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World Textile and Apparel Trade and Production Trends, Edition 1 2006

Description:

US textile output fell for the eighth time in 2005 as import volumes rose. Clothing output was down for the 11th year in a row despite healthy consumer spending. Surprisingly, textile industry profits rose sharply, and clothing profits by a comfortable margin. Meanwhile, China stepped up its sales to the USA although growth was more moderate. In Argentina growth slowed after brisk expansion in recent years. Growth was also slower in Brazil as sales to the US market barely rose. Falling US demand also hit Colombia, leaving hopes pinned on the Andean Trade Promotion and Drug Eradication Act (ATPDEA), US safeguard quotas against China, and the Trade Promotion Agreement (TPA). Mexico suffered from a transfer of US orders to Central America and the Dominican Republic as well as to Asian countries.

But anti-dumping duties are helping to fend off imports from China in the domestic market. EU output fell again in 2005 as imports grew, and consumer spending and exports remained sluggish. China stepped up its shipments by 41.3% in value and increased its share of imports to 28.9%, leaving Turkey a distant second with 15.0%.
The industry in China progressed in 2005 in spite of new US and EU quotas on its exports. Output and investment expanded as exports rose by over 20%. But officials say problems of misdirected investment and a lack of self-discipline need to be addressed if China is to maintain and enhance its competitive position. In Hong Kong domestic exports continued to fall as more production was shifted to mainland China—although the new quotas against China have led to resurgence in outward processing arrangements (OPA). In Japan output continued to fall, especially in clothing, as operations were moved abroad and imports rose. China alone supplied 82% of Japanese clothing imports in 2005. South Korea’s industry also faced growing competition, especially in clothing. The industry is looking for help from the US South Korea Free Trade Agreement although a deal with India may be concluded in 2007. Taiwan also suffered from falling exports and output in 2005 as the shift to low cost countries continued.

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