In a historic milestone, trade in textiles and clothing from the European Union (EU) exceeded €200 billion in 2022, marking a significant increase compared to previous years. However, this growth comes with a concerning trade deficit of about €70 billion in the segment.

The surge in total trade can be attributed to a substantial rise in clothing imports, which saw a 36.6% increase in value. The primary sources of these imports were China and Bangladesh. Despite the positive export performance, the EU's trade deficit in textiles and clothing has grown to €70 billion, representing a 48% increase from the previous year. These findings were revealed in Euratex's 2023 Spring Report, which analyzes the latest trade flows in the textile and clothing sector.

Euratex has raised concerns about the growing deficit, noting that it contradicts the EU's Industrial Strategy's objective of enhancing resilience and achieving "strategic autonomy." Rather than achieving autonomy, the EU has become more dependent on imports, especially for certain raw materials and fibers. This situation poses challenges to the Commission's aim of promoting and prioritizing high-quality and sustainable textile products on the Single Market, regardless of their country of origin.

With clothing imports reaching €140 billion, ensuring effective quality control and compliance becomes a significant challenge.

Furthermore, the EU must make efforts to strengthen its export performance and rebalance its trade relations with other countries. Euratex emphasizes that EU companies are global leaders in high-end fashion products and technical textiles. Therefore, additional support should be provided to bolster their activities in both established and emerging markets. In this regard, ongoing Free Trade Agreement (FTA) negotiations with India should prioritize improving market access and ensuring fair competition between local and EU companies.

While the EU's textile and clothing trade has reached record levels, the widening trade deficit and challenges in ensuring quality control warrant attention.

By Fashionating World
https://www.fashionatingworld.com/new1-2/eu-t-a-trade-hits-historic-high-of-200-billion-but-trade-deficit-raises-concerns