Home / Knowledge / News / Textiles / ECFA - Win-lose situation for textile sector

ECFA - Win-lose situation for textile sector

04
Feb '10
The proposed Economic Cooperation Framework Agreement (ECFA) is creating various emotions amongst the textile fraternity. The ECFA could make winners or losers out of various companies and even within group companies.

The proposed ECFA with China is expected to remove trade barriers on a large range of goods and will play a critical role on the fortunes of the textile sector. Taiwan's Lealea Group could witness mixed fortunes among its diversified companies.

One group subsidiary, Li Peng Enterprise Co., the largest nylon chips manufacturer in Asia, is expected to benefit, but another subsidiary, Lealea Enterprise Co., a maker of polyester chips and filament, will struggle to avoid being negatively affected.

Li Peng accounts for 25 percent of China's demand for nylon chips and is expected to further expand its market share in the next few years because of China's growing import demand for the raw material and dismantling of trade barriers.

Currently nylon chips attract 6.5 percent import duty in China, but once the ECHA agreement comes in to force and if textiles are amongst the first list of goods to have free-trade access, demand for nylon chips is expected to sky-rocket.

If Chinese demand for nylon chips outstrips supply, Li Peng could even contemplate increasing its nylon chip capacity and in the process try to replace German chemical giant BASF as the largest nylon chip manufacturer in the world.

The other group company Lealea Enterprise Co, on the other hand would need to struggle considering that China is the biggest producer of polyester and would be very difficult to beat Chinese manufacturers in a sector, which has a very low entry threshold.

The biggest challenge comes from Chinese textile manufacturers who could invade the Taiwanese textile raw material market on the strength of their competitive costs; on the other hand Chinese textile sector could also be facing the same end of the stick.

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Textiles | On 13th May 2021

UK GDP contracted 1.5% in Q1: ONS

The gross domestic product (GDP) of UK is estimated to have...

Pic: Shutterstock

Apparel/Garments | On 13th May 2021

Vietnamese garment manufacturers must boost production: Report

Garment manufacturers in Vietnam need to boost their production...

Pic: The Resilience Fund for Women in Global Value Chains

Apparel/Garments | On 13th May 2021

New fund launched to support women in global value chains

A first-of-its-kind collaborative funding initiative, The Resilience...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Strike a balance between handmade in India and 'Make in India'

Textile Industry, Head honchos

Textile Industry
Head honchos

Verticals like fast fashion won’t completely adopt personalisation on...

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchains will be in heavy use by early adopters by 2025

Meghavi Suthar,

Meghavi Suthar

Founded by NIFT graduate <b>Meghavi Suthar </b>in 2017, Kala is an...

David Guiho,

David Guiho

Headquartered in Apt, South of France, Delta Plus designs, manufactures...

Sandra Sequeira,

Sandra Sequeira

The JD Institute of Fashion Technology is the educational division of JD...

Steve McCullough & Marco Weichert, Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Steve McCullough & Marco Weichert
Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Functional Fabric Fair is a trade-exclusive event showcasing the latest...

Shujaul Rehman, Garware Technical Fibres

Shujaul Rehman
Garware Technical Fibres

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Shlomzion Chen, Seevix

Shlomzion Chen
Seevix

Seevix Material Sciences Ltd, which develops and manufactures synthetic...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Seema Gujral, Label Seema Gujral

Seema Gujral
Label Seema Gujral

<b>Seema Gujral</b>'s designs for her eponymous label revolve around...

Sandeep Gonsalves & Sarah Gonsalves, Sarah & Sandeep

Sandeep Gonsalves & Sarah Gonsalves
Sarah & Sandeep

Established in 2012, Sarah &amp; Sandeep is a luxury menswear label...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search