EmergingTextiles.com
The strong performance of developing Asian suppliers of clothing to key markets will continue, a report from the Asian Development Bank (ADB) confirms. The document also suggests countries with preferential access will remain struggling despite China being restricted by quotas. But the ADB urges that now is the time for Asian countries to make necessary changes to further improve competitiveness.
A revised report from the influential Asian Development Bank (ADB) confirms clothing and textile producers in Asian countries outside of China are set to improve on the gains currently being made on the key US and EU import markets.
In the 144-page 'Asian Development Outlook 2006 Update' (link attached below), the ADB confirms the trend it made in the original report issued earlier this year.
Namely that while China's surge has cooled off after safeguard measures and subsequent restrictions in the US and EU, other developing Asian countries have been making good progress.
Developing Asian countries continue to gain
And although the clothing market in the US has contracted so far in 2006, suppliers based in Vietnam, the Philippines and Hong Kong have recorded the largest positive turnaround in performance compared with 2005.
At the same time, Bangladesh, Indonesia, Cambodia and Pakistan all built on good performance in 2005.
However, Indian output has slowed down compared with 2005 and Thailand's value growth is low compared to its volume while Sri Lanka performed weakest.
Tariff discrimination
But generally speaking, the report notes that while Asian countries suffer 'tariff discrimination' in the US, favourable prices from suppliers in the region have won them greater market share.
Another problem for Asian producers is the US Generalised System of Preferences (GSP) that, unlike the EU version, does not include textiles and clothing products.
The EU offers reduced or even zero-tariffs on such products imported from often poor nations in Asia and elsewhere.
QIZ success for Egypt, Jordan
Preferential suppliers to the US were generally in a poorer state in 2006, especially from CAFTA, Mexico and AGOA (Sub-Saharan Africa) where there was a sharp deterioration.
But there were some notable exceptions.
Jordan and Egypt grasped the opportunity presented by their Qualified Industrial Zones (QIZ) enabling exporters duty-free access to the US market.
Both countries increased volumes entering US ports in the first half of 2006 by 13.6 per cent (Jordan) and 43 per cent (Egypt).
Another country going well so far this year is Morocco with a rise of 69.8 per cent compared to one year earlier.
The China quota effect
The competition for both the US and EU markets has been more open this year following restrictions placed on imports from China.
The EU was first to put in place a Memorandum of Understanding (MoU) with China which limited 10 of the 35 categories of apparel and textile.
This was a lot more favourable to China than the subsequent MoU with the US which put restrictions on a wider range of products.
Imported clothing volumes from China have fallen 15 per cent in the US during the first half of 2006 with value down 11 per cent due to rising unit prices.
A revised report from the influential Asian Development Bank (ADB) confirms clothing and textile producers in Asian countries outside of China are set to improve on the gains currently being made on the key US and EU import markets.
In the 144-page 'Asian Development Outlook 2006 Update' (link attached below), the ADB confirms the trend it made in the original report issued earlier this year.
Namely that while China's surge has cooled off after safeguard measures and subsequent restrictions in the US and EU, other developing Asian countries have been making good progress.
Developing Asian countries continue to gain
And although the clothing market in the US has contracted so far in 2006, suppliers based in Vietnam, the Philippines and Hong Kong have recorded the largest positive turnaround in performance compared with 2005.
At the same time, Bangladesh, Indonesia, Cambodia and Pakistan all built on good performance in 2005.
However, Indian output has slowed down compared with 2005 and Thailand's value growth is low compared to its volume while Sri Lanka performed weakest.
Tariff discrimination
But generally speaking, the report notes that while Asian countries suffer 'tariff discrimination' in the US, favourable prices from suppliers in the region have won them greater market share.
Another problem for Asian producers is the US Generalised System of Preferences (GSP) that, unlike the EU version, does not include textiles and clothing products.
The EU offers reduced or even zero-tariffs on such products imported from often poor nations in Asia and elsewhere.
QIZ success for Egypt, Jordan
Preferential suppliers to the US were generally in a poorer state in 2006, especially from CAFTA, Mexico and AGOA (Sub-Saharan Africa) where there was a sharp deterioration.
But there were some notable exceptions.
Jordan and Egypt grasped the opportunity presented by their Qualified Industrial Zones (QIZ) enabling exporters duty-free access to the US market.
Both countries increased volumes entering US ports in the first half of 2006 by 13.6 per cent (Jordan) and 43 per cent (Egypt).
Another country going well so far this year is Morocco with a rise of 69.8 per cent compared to one year earlier.
The China quota effect
The competition for both the US and EU markets has been more open this year following restrictions placed on imports from China.
The EU was first to put in place a Memorandum of Understanding (MoU) with China which limited 10 of the 35 categories of apparel and textile.
This was a lot more favourable to China than the subsequent MoU with the US which put restrictions on a wider range of products.
Imported clothing volumes from China have fallen 15 per cent in the US during the first half of 2006 with value down 11 per cent due to rising unit prices.
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