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EU textile & clothing trade deficit with China mounting
06 Apr '12
2 min read
The 27-member European Union trade deficit with China in textiles and clothing exports and imports is widening and mounting with each passing year.
China's initial expansion into global markets was led by the textiles sector. Today, it remains the leading producer and remains EU's top most textiles and garment supplier.
China accounts for roughly three quarters of the EU's trade deficit in textiles and clothing in terms of value, says a report of Business Europe.
In contrast, China is not a significant market for EU exports from the sector, despite positive trends in recent years. This explains the large trade deficit.
China's dominance in this sector is driven by the availability of low-cost labour and raw materials, says the report.
While the EU nations have always been posting a trade deficit since 2005 (the year since figures are last available), the deficit rate with China has grown at just less than double the rate, vis-à-vis the overall deficit rate in the textile and apparel overseas trade.
The overall deficit rate climbed from €35.90 billion in 2005 to €49.74 billion in 2010, up 38.55 percent, while that with China surged from just €20.41 billion in 2005 to €33.33 billion in 2010, up a staggering 63.33 percent.
China's initial expansion into global markets was led by the textiles sector. Today, it remains the leading producer and remains EU's top most textiles and garment supplier.
China accounts for roughly three quarters of the EU's trade deficit in textiles and clothing in terms of value, says a report of Business Europe.
In contrast, China is not a significant market for EU exports from the sector, despite positive trends in recent years. This explains the large trade deficit.
China's dominance in this sector is driven by the availability of low-cost labour and raw materials, says the report.
While the EU nations have always been posting a trade deficit since 2005 (the year since figures are last available), the deficit rate with China has grown at just less than double the rate, vis-à-vis the overall deficit rate in the textile and apparel overseas trade.
The overall deficit rate climbed from €35.90 billion in 2005 to €49.74 billion in 2010, up 38.55 percent, while that with China surged from just €20.41 billion in 2005 to €33.33 billion in 2010, up a staggering 63.33 percent.
Fibre2fashion News Desk - India
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