US & EU textile restrictions may spell boom for many

05 Sep '05

2 min read

In the race to reach their customers, the retailer will not lag behind.

And not the least under the pretext on non-avialablility of apparels and textiles at their showrooms or racks.

For the present, retailers from the EU and the US fid it hard to be left with little or non atall clothings stocks comprising trousers, t-shirts, bras and other innerwear as they have been put under quotas or limits.

The EU has snapped supply lines by holding consignments of over 80 million bras, jumpers, t-shirts and other clothings at different ports within the members countries. All, because they have exceeded the prescribed limits under the June agreement.

German retailers have already started seeking alternative apparel and garment sources in Indonesia, India, Pakistan, Bangladesh and other Asian countries to overcome scarcity situation and recoup sureshot lost orders.

With no solution in sight, the retailers have been losing on time and money, and are saddled with uncertainities that none would prefer.

Some of them had already advertised their forthcoming designs and styles that may not reach their stores and may have to lose money as major suppliers may not repay them for goods undelivered.

It is also learnt that certain US and EU retailers have approached Hong Kong based suppliers to circumvent the blockade under the Outward Processing Arrangement.

Under the purview of the agreement, Hong Kong manufacturers can subcontract allied and textile finishing processes to mainland factories as long as the garment undergoes major change in Hong Kong itelf.

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