The Situation of Textile and Clothing Trade

Release time:2013-02-28      Source:admin      Reads:

Textile and clothing (T&C) trade represent 5.7 % of world exports. In four decades, world textile and clothing trade increased by more than 60 times (actually faster than total goods trade, which grew by 48 times), from less than $ 6 billion in 1962 to $ 342 billion in 2001 (in nominal terms). The more labour intensive clothing sector has increased much faster than textile and represents 57% of world T&C trade. A great demand for printed labels evidently has seen an upward trend. Growth of trade in this sector has, however, witnessed a slowdown in value terms since the mid-1990s, particularly under the ATC, explained in part by reduced prices due to increased competition among supplier countries.

In the late 80s developing countries overtook industrialized countries in their share of T&C exports, and now account for 50 % of world exports of textile and 70 % for clothing. This difference is explained by the fact that the clothing industry is more labour intensive than textile, thus labour-abundant developing countries have a comparative advantage in clothing. That is the reason why manufacturers, especially those engaged in printed labels with affordable price, are situated in developing countries.

Bur excessive dependency on textiles and clothing exports will put developing countries on the defensive. Once sudden changes happened in the trading environment for the sector, total quota would dismantle. Although the precise impact on those countries mainly depends on their ability and response to the changing market circumstances, labour intensive products after all, such as printed labels and woven labels, are more vulnerable and easier eliminated than hi-tech products. All they require is to find another way to break through this passive situation and have a sustainable development. And solutions like industry innovation is universally accepted in the world which may help developing countries break the ice.

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