Price Competitiveness Of EU Garment Imports

The EU has been importing garments from some Asian countries, including China, India, Bangladesh or Sri Lanka.

According to research reports recently published by Asia Development Bank (ADB), tax exemption or tariff preferences do not take advantage, but price competitiveness is more decisive.

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This research on the clothing market of the EU from 2004 to 2007 indicates that even if the EU does not enjoy preferential tax cuts, the most notable winners are China and India.

The EU's lifting of quotas for textiles is more influential than preferential treatment.

Even in the late 2005, when the EU imposed quotas on some of China's textiles, China still gained considerable market share after lifting the quota.

India and Sri Lanka also performed well, and Vietnam's exports to the European Union also increased significantly.

Bangladesh and other traditional Asian suppliers are struggling, such as Indonesia, Thailand, Kampuchea or Laos.

(EU) the tariff reduction system of the EU is complex, especially in terms of the origin rules related to preferential treatment, which may explain the difficulties faced by some exporting countries.

Public expectations of GSP change of origin can provide more opportunities for export to Asian countries, such as Bangladesh.

The study also recommended that South Asian Association for Regional Cooperation (SAARC) or ASEAN (of of Asian Asian) should establish regional integration, exclude tariff barriers, move factories to areas with low cost in the region, and take advantage of the cumulative provisions of EU origin rules.

At present, price advantage is more decisive than preferential treatment.

China's price advantage still comes from its cheap labor costs.

Yang Jing: editor in charge