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Textile & garment export to EU maintains upward trend
11
Sep '08
EU and China had agreed to set up a joint monitoring system in October last year, to manage the transition from restrictive to non-restrictive trade, along with monitoring the export surges.

However, with the expiry of large number of Mainland Chinese textile and apparel quotas in 2007, this 'bilateral monitoring mechanism' entered into force in January 2008, covering product categories of 4,5,6,7,20,26,31 and 115.

According to the monitoring data of the first half, by the bilateral surveillance mechanism, textile and apparel imports of EU from Mainland China have been quite strong since the beginning of 2008.

In textile and clothing categories, under monitoring system, enterprises in Mainland China are expected to continue their good performance. Experts suggest that, Hong Kong will have to gradually reduce outward processing arrangements in the Mainland and focus on producing products of high quality. At the same time, Hong Kong has to be committed to maintain its own market share in EU's textile and apparel imports.

In the absence of quota restrictions, the current outward processing arrangements between Hong Kong and the Mainland for the EU market will not be important, but such cooperation mode of production will be reusable, if the EU imposes trade remedial measures against Mainland China.

Fibre2fashion News Desk - China

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