EU trade in textiles and clothing experienced record growth in 2022, passing €200bn (US$216bn) for the first time as imports surged from China and Bangladesh, with industry trade bodies warning the increase in trade deficit is “cause for concern”.
“EU companies are world leaders in high-end fashion products and in technical textiles. More needs to be done to support their activities in established markets but also emerging economies. For instance, the ongoing FTA negotiations with India should focus on improving market access and ensure “fair” competition with local companies,” Euratex said.
Euratex released its 2023 Spring Report in which it noted EU textile imports rose 36.6% in value terms with a significant amount coming from China and Bangladesh outweighing positive export performance.
As a result, the EU’s trade deficit in textiles and clothing has increased to €70bn, which is 48% higher than the year before.
The Euratex Spring Report highlights significant differences between trade-in value and in volume. EU’s export of textile products has increased by 13% in value but actually dropped by nearly 7% in volume. This obviously reflects the very high inflation figures from last year, caused initially by the rising energy prices and changing central bank policies. This in turn leads to uncertainty with the consumer, resulting in low demand and gloomy prospects for the entire value chain.
The trade body also pointed out the figures challenge the Commission’s ambition which is to promote – and prevail – high-quality and sustainable textile products on the Single Market – regardless where they have been produced. With imports now reaching €140bn, it will be a challenge to effectively control the quality and compliance over these imports. Market surveillance will need to be stepped up massively, without becoming a barrier to trade.
In addition, more effort needs to be placed on EU export performance in order to rebalance trade relations with the rest of the world.
The Euratex Spring Report highlights significant differences between trade-in value and in volume. EU’s export of textile products has increased by 13% in value but actually dropped by nearly 7% in volume. This obviously reflects the very high inflation figures from last year, caused initially by the rising energy prices and changing central bank policies. This in turn leads to uncertainty with the consumer, resulting in low demand and gloomy prospects for the entire value chain.
EU warned of overreliance on China and Bangladesh for textile imports
