2 minutes
EU's textile and apparel trade deficit grew by 48% in 2022
In 2022, the European Union’s textile and apparel trade topped the symbolic €200 billion revenue mark for the first time. The figure was reported by Euratex, the industry's Europe-wide association, which also warned about the acceleration in the related trade deficit’s increase.
EU apparel imports in fact increased by 36.6% in fiscal 2022. They came primarily from China and Bangladesh, the EU’s largest apparel supplier.
Between them, the two countries contributed to an EU textile and apparel trade deficit amounting to €70 billion in 2022, equivalent to a 48% increase year-on-year. In other words, the opposite of the stated goal of the EU’s industrial strategy, which according to Euratex aims at “strategic independence.”
The spring report published by Euratex also highlighted the effects inflation is having on the various indicators monitored by the industry. For example, while exports of European textile products increased by 13% in value, they grew by only 7% in volume. According to Euratex, energy prices and central bank policy reversals are fuelling uncertainty in EU client countries.
“This [context] challenges the [EU] Commission’s intention of promoting – and making prevalent – the influx of high-quality and sustainable textile products on the [EU’s] single market, regardless of where they have been produced. With imports now worth €140 billion, it will be a challenge to effectively control quality and compliance for these imports,” said Euratex, which also called for more effective policies for improving exports.
“EU companies are world leaders in high-end fashion products and in performance textiles,” said Euratex. The association called for future free trade deals with India to set “fair” competitive conditions.
In the quarterly report published in early April, Euratex welcomed a turnaround in apparel production in the last quarter, but warned of a declining level of confidence by the industry at large.
Copyright © 2024 FashionNetwork.com All rights reserved.
