TRALAC - Trade Law Centre

Chinese Textile Exports Soar

Monday, 11 April 2005

Source: Finance24.com

Beijing - China's textile exports soared 29% in the first three months of the year, fueled by a steep hike in exports to the United States, government statistics showed on Monday.

In a statement on its website, the ministry of commerce said US-bound textile exports jumped 258% since the end of the global quota system on January 1.

It said exports of cotton trousers, cotton knit shirts and underwear, which are now the subject of a US investigation for possible market disruption, rose 1 574%, 595% and 742% respectively in the January to February period.

It did not give a breakdown for the first quarter.

Figures for the European Union and other export markets were not given. Full trade figures for the first three months are expected to be released this week.

Increasing volume and falling prices of textiles exports have triggered concern in the US and the EU as well as in other countries such as South Africa and Tunisia.

The commerce ministry insisted its self-imposed exports tariff slowed down China's textile exports to a certain degree but the impact on exports to the US and the EU had been limited.

Last week, the US and EU both took measures to limit surging textile imports from China.

In its statement, the ministry warned domestic textile makers of the danger of fresh protective measures in major markets but did not suggest any measures to deal with the sharp upturn in export shipments.

China, the world's largest exporter of clothing with 28% of the market, is proving to be the main winner from the end of textile quotas because it is able to undercut producers with higher costs in other countries.

The end of quotas enshrined in the 1974 Multifibre Arrangement and later in the World Trade Organization (WTO) Agreement on Textiles and Clothing took effect on January 1.



Regularly updated trade statistics on AGOA.info include (Click to follow the links):

  • All Countries’ AGOA and GSP Trade Overview

  • AGOA Trade by Industry Sector

  • Apparel Trade under AGOA’s Wearing Apparel Provisions

  • Latest Apparel Quotas under AGOA

  • Bilateral Trade Data for all AGOA-eligible countries individually.