While there are lots of cheers when a new government is elected, there is also a huge workload to formulate policies considering the erstwhile issues within and outside the country and also deal with issues that the country might face in future. The elections have concluded in the European Union and the majority party has the onus of carefully formulating policies for all the sectors. The textile sector and clothing sector accounts for 3 percent of total manufacturing value added in Europe. It is one of the most significant sectors, but, the problems that EU's textile sector is facing are also enormous.
The pertinent point here is that the textile and garment industry has grown into a huge sector and everything from fibres, yarns, types of textile to fabric, dyes et al has become a sub-sector within this vast industry. Thus, there is an increased dependability of countries on each other. European Union has faced certain differences with China, India and Russia regarding textile products.
The majority party in EU European People's Party (EPP) has mentioned in its manifesto that it will ensure that it creates conditions that are favourable for small and medium sized businesses including new comers in business, family firms and entrepreneurs. The party also has assured to provide funds for research and development, private investment and make funds more easily available to the firms. The consumer trend so far has shown an inclination towards high-end textile products. In such a case, it will take a lot of planning and right policies to promote small and medium sized businesses. Also, the main concern with EU textile is that most European countries find making textiles expensive, so these countries prefer to import the textile from other countries. Approximately 95 percent of EU's textile requirements are met through imports. Thus, it would be increasingly difficult for the EU's textile industries to compete with the low cost of production that the Asian countries like Pakistan, Bangladesh and India offer.
Another challenge for the majority party will be to resolve the recent issues that it has been having with India and Russia with regard to the textile import duties. Russia has earlier this year cited its differences with EU on quotas on imports. Moscow has warned EU to initiate quotas on textiles coming from the EU, if EU does not raise its own annual quota on imports of Russian textiles. Russia had mentioned that the annual EU quota of $ 150 million is insufficient. Though an interim EU-Russian trade agreement was made and was signed by EU and Russia, but the EPP will have to find a long term solution for this problem.