From the Sector

Statement

On the occasion of the EU-Africa Business Summit, EURATEX is re-iterating the ambition of the European textile industry to grow its role on global markets, including the African continent.

The textile ecosystem is considered the 2^nd most globalised sector of the European economy ; it is built on globalised supply chains and fierce competition with China, US, Bangladesh, Turkey and many others. Imports are now peaking at €115 billion (ca. 60% garments and 40% textiles), with a dramatic increase of imported medical textiles (face masks) in 2020. Every year, 22 billion pieces of textile and garment products are brought into the EU Single market.

Europe’s answer to this competitive pressure must be to invest even more on quality and innovative products, made in a sustainable manner. As emerging markets evolve, the appetite for better quality, comfort and design will grow. The ability and willingness to purchase technical textiles, which offer solutions to durability and improved performance, will increase. That is where Europe can be successful. To illustrate: the EU’s exports to China have increased by 33% in 2021 (first 11 months).

In its vision paper on the future of European textiles and apparel, EURATEX has confirmed its ambition to increase the global market share of the European textile industry. Strengthening relations with nearby Turkey and North African countries is important in this regard, offering opportunities for nearshoring. The African continent at large offers trade and investment opportunities, provided the business climate is stable and transparent.

Relations with the UK and Switzerland need to be optimised; especially Brexit has caused serious damage to bilateral trade flows (-33% export to the UK during Jan-Nov 2021). The Mercosur FTA offers interesting opportunities for the European textile industry; it should be ratified as soon as possible. We need to work with the US on mutual recognition of standards and setting global environmental and social rules. We call upon India to make an honest proposal for the upcoming free trade negotiations, which will ensure full and fair access to the Indian market.

European textile and apparel companies (mostly SMEs) need to be accompanied to exploit these market opportunities. At the same time, they need to be protected from unfair competition, e.g. products who do not comply with stringent EU standards and procedures. This requires more effective market surveillance.

The European textile and apparel industry welcomes the organisation of the EU-US Summit in Brussels, and hopes that political leaders will launch a new era of closer cooperation across the Atlantic. Both the Covid19 pandemic and recent geopolitical tensions call for global solutions; the EU and the US should take a leadership role in developing that new global framework.

EU-US trade in textiles and apparel have dropped by nearly 20% in 2020 (just under €6 bln), while imports from other countries, in particular China, have increased spectacularly (+45% into the EU). At the same time, global supply chains came under pressure, and access to certain raw materials for the industry became difficult and costly.

Against this background, EURATEX does not call for protectionism, but a better functioning of global supply chains, with common rules which are applied by all. The EU and US authorities should put their full influence to establish a level playing field for our industry across the globe, promoting environmental and social standards. Sustainable and circular textiles should become the norm, thus contributing to a greener planet and creating high quality jobs.  

At bilateral level, the EU and US should resume their work on mutual recognition of standards and certification procedures, thus saving considerable costs for our companies while maintaining the highest safety standards. Custom procedures can be simplified on both sides, and joint research, e.g. in smart textiles, should be promoted.

EURATEX welcomes the recent progress in provisionally eliminating additional duties on several American and European products due to the Airbus-Boeing trade dispute. It is a very positive sign that EURATEX would like to highlight in a particularly difficult context for the textile and clothing industry at European, American and even global levels. EURATEX calls on both US and EU institutions to eliminate such duties permanently and build on a common positive agenda for the benefit of EU and US companies and consumers.

EURATEX Director General Dirk Vantyghem commented: "Both the EU and US are developing a new business model for their industry. We should make sure these models can complement and reinforce each other. If not, we risk losing global leadership, not just in terms of market share but also in terms of values and standards."