Textile & Clothing export plunge 50% in 2005

26 May '06

2 min read

Fiji's textile and clothing industry export of 2005 witnessed its worst year in a decade, with exports plunging to nearly half and around 6,000 workers losing jobs, the United Nations Development Programme (UNDP) revealed.

Textile and clothing exports reached only US $69 million, with US garment imports falling nearly 80 percent, from $85.8 million to $19.2 million, according to latest quarterly report on effects of abolishing of quotas, prepared by UNDP Regional Centre in Colombo.

Fiji's textile and clothing exports during 1999 had reached $187 million.

Free Trade Agreement (FTA) between Australia and China may further hit Fiji's garment industry, the report said.

Moreover, safeguards imposed on Chinese textile and clothing product exports to be lifted in 2008, will countries which have returned better results till now.

Producers in Fiji hold the view that Australia and New Zealand can help its industry by relaxing “rules of origin” by reducing local content from 50 to 25 percent and inclusion of wool and wool-blended textiles.

Asia-Pacific's share in the United States rose from 41 to 49 percent in value and from 47 to 53 percent in the EU.

China and India expanded their market shares in both the United States and European Union, according to data.

Meanwhile, Africa and Caribbean having trade agreements with the United States, lost textile and clothing products shares.

On the other hand Nepal, Mongolia, Fiji and Maldives, have suffered due to elimination of quotas.

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