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Abstract
The international textile and clothing exports were US $ 527 billion in 2009 and US $
766 billion in 2013. 45.6 % growth was observed during the last five years. If the
growth continued, it is expected that in 2016, it would exceed US $ 1,000 billion. For
many years, experts had been discussing the future role of China in textile and
clothing industries. Most popular opinion was that China was increasingly leaving the
textile and clothing industries and moving on to hi-tech products. This study shows
that the data issued by WTO does not support this opinion. Data shows that China is
continuously increasing its share in the international market and it is not providing
space to rest of the world. In 2009, China had 41.1% share in clothing and in 2013,
share of China1was 44.5%. After China, Italy was next in clothing exports with only
6.21% and 5.11% shares in 2009 and 2013 respectively. This shows the tilt of the data
and huge gap between top two exporters. Current trends prove that China is not giving
any space to the rest of the world and gap will increase every year in spite of
increasing wages and strict environment control laws in China. It seems that China
managed increasing input costs and still enjoys leading role in the international
market. Considering this fact, it can be concluded that China will keep on enjoying its
approximately 50% share in textile and clothing business on international level.
Introduction
As per report of WTO, total exports on international level of all sorts of commodities
were US $26,453 billion and US $38,861 billion in 2009 and 2013 respectively.
Table 1 shows that WTO has divided international commodities trade in 17
categories. It is obvious from Table 1 that manufactured goods have highest share
(30.49%). After manufacturing sector, machinery and transport equipment is second with
15.27% share in 2013. Fuel business is third with 10.29% share. Textile and clothing has
minor share in the international market, which was only 1.99% in 2009 and 1.97% in
2013. The data further shows that agriculture sector has 4.47% market share in 2013,
which is roughly double as compared to textile and clothing industries.
As per data provided by Pakistan Trade Development Authority (PTDA), textile and
clothing has more than 60% share in Pakistan's international exports and this sector is
the largest manufacturing sector in Pakistan. On the other hand, textile and clothing
has least share in the international trade. This is the point, which Pakistan needs to
rethink while making and implementing the trade policies. The Pakistan Government
has always been giving best offers to textile and clothing industries. Textile and
clothing industry of Pakistan is playing a major role in exports of Pakistan but when it
is compared with other countries, performance of textile and clothing industries of
Pakistan have been quite dissatisfactory. Discussion about the reasons of poor
performance is out of the scope of this report. This report is an effort to explain the
trends in the international textile and clothing businesses.
Textile and clothing exports of Pakistan have a significant share in total exports of
Pakistan. As stated by TDAP, in 2012-13, textile and clothing had a 52.4% share in
total exports of Pakistan. We must note the fact that textile and clothing industries are
major industries of Pakistan but they only had 1.97% share in the international market
in 2013, which meant that Textile and clothing industries, despite being our major
industries, have minor impact on the total international exports and turnover.
Table 1 Export of All Commodities at International Level: 2009 and 2013
(Million US$)
Year
Agricultural products
Food
Fuels and mining products
Fuels
Manufactures
Iron and steel
Chemicals
Pharmaceuticals
Machinery and transport equipment
Office and telecom equipment
Electronic data processing and
equipment
Telecommunications equipment
2009
1,182,305
1,002,366
2,272,247
1,813,061
8,362,923
326,201
1,461,714
438,078
4,207,708
1,321,517
2013
1,744,833
1,456,682
3,996,976
3,257,538
11,848,002
454,032
2,001,181
521,700
5,932,174
1,750,113
Share%
2009
4.47
3.79
8.59
6.85
31.61
1.23
5.53
1.66
15.91
5.00
Share
%2013
4.49
3.75
10.29
8.38
30.49
1.17
5.15
1.34
15.27
4.50
461,618
504,602
543,127
669,579
1.75
1.91
1.40
1.72
office
355,297
1,371,879
844,075
211,109
316,411
26,453,111
537,407
2,033,410
1,347,798
305,898
460,268
38,860,718
1.34
5.19
3.19
0.80
1.20
1.99
1.38
5.23
3.47
0.79
1.18
1.97
Reporter
2009
2010
2011
2012
2013
World
316411
353415
417724
422573
460268
China
107264
129820
153774
159614
177435
Hong
Kong,
China
22826
24049
24505
22573
21937
Italy
19638
20122
23273
22166
23735
Germany
16978
17303
19461
17473
18409
India
12005
11229
14672
13833
16843
6
7
8
9
10
11
Bangladesh
11892
14855
19214
19788
23501
Turkey
11556
12760
13948
14290
15408
France
10120
10066
11050
10340
11046
Viet Nam
8540
10390
13149
14443
17230
Belgium
8481
7808
9042
7822
8584
Spain
7129
7151
9628
9983
11543
12
13
Netherlands
6462
7014
8498
7794
8612
Indonesia
5915
6820
8045
7524
7692
1
2
3
4
5
Share(%) in
2013
33.90
7.21
6.21
5.37
3.79
3.76
3.65
3.20
2.70
2.68
2.25
2.04
1.87
United
Kingdom
United
States
Mexico
14
15
16
17
18
19
20
5199
5488
6564
6846
7527
1.64
4187
4692
5241
5614
5859
4113
4363
4638
4449
4530
Thailand
3724
4300
4561
4275
4100
Denmark
3404
3504
4143
3619
3772
Pakistan
3357
3930
4550
4214
4549
Sri Lanka
3265
3491
4211
4005
4511
1.32
1.30
1.18
1.08
1.06
1.03
200,000
150,000
130,090
100,000
50,000
-
2009
2013
2013
Among European countries, Italy had 6.2% share in 2009 and 5.11% share in 2013.
Germany is second to Italy with 5.37% and 4.77% share in 2009 and 2013
respectively. Turkey is third for clothing exports in European countries. Figure 3
shows that there is a declining trend in share percentage. However, the figure also
shows that Turkey has been successful in maintaining its share. This figure explains
that Europe still has almost one-fourth share in international market that shows high
production capacity of European countries.
2,013
2,009
MN US $
Total share of South Asia was 9.65% in 2009 and 10.73% in 2013. Out of this,
Bangladesh has the highest share, which is 5.11% and Pakistan and Sri Lanka have
less than 1% share. It is important to note that textile and clothing are the biggest
industries of Pakistan and Sri Lanka but their share in the international clothing
market is less than 1%. Pakistan has a long history of textile manufacturing and it is
the fourth largest country among cotton producing countries. It is the point, which
needs to be focused carefully for making better policies for textile and clothing
industries of Pakistan.
3.00
2013
2.00
1.00
0.00
India
Bangladesh
Pakistan
Sri Lanka
MN US $
20,000
15,000
2,009
10,000
2,013
5,000
-
India
Bangladesh Pakistan
Sri Lanka
US MN $
14,000
12,000
10,000
2009
8,000
2013
6,000
4,000
2,000
-
Vietnam
Indonesia
Thailand
2009
1.5
2013
1.0
0.5
0.0
Vietnam
Indonesia
Thailand
MN US $
20,000
15,000
2,009
10,000
2,013
5,000
-
India
Bangladesh Pakistan
Sri Lanka
3.00
2013
2.00
1.00
0.00
India
Bangladesh
Pakistan
Sri Lanka
depicts developing countries have more than 70% share in textile exports. Any
positive change in textile export values will significantly affect economics of third
world countries. Textile industry is more capital intensive and less labor intensive.
Moreover, after increase in the demand of technical textile, developed countries are
enjoying major share in textile exports. Table 2, shows a continuous increase in textile
exports of the developed world. It shows that developed world will succeed in
maintaining its share in the international market due to production of high tech
products.
Table 2 Textile Exports of Top 20 Countries
Reporter
2,009
2,010
2,011
2,012
2,013
Share in
2013 (%)
World
211,109
252,458
294,193
284,158
305,898
1
2
3
4
China
59,824
76,871
94,411
95,450
106,578
Germany
12,903
14,155
16,299
14,532
14,910
Italy
11,804
12,966
14,726
13,167
13,459
9,976
11,307
11,283
10,546
10,718
34.84
4.87
4.40
3.50
United States
9,930
12,169
13,852
13,483
13,924
4.55
Korea, Republic of
9,155
10,968
12,369
11,970
12,043
3.94
7
8
India
9,111
12,833
15,340
15,274
18,907
Chinese Taipei
7,891
9,719
11,016
10,293
10,246
6.18
3.35
9
10
11
12
13
14
Turkey
7,724
8,964
10,772
11,054
12,157
Pakistan
6,510
7,848
9,082
8,705
9,341
Belgium
6,306
6,506
6,926
6,039
6,153
Japan
6,108
7,086
8,034
7,819
6,841
France
5,630
5,708
6,110
5,353
5,424
Netherlands
4,431
4,768
5,519
5,161
5,219
3.97
3.05
2.01
2.24
1.77
1.71
15
United Kingdom
3,653
3,981
4,436
4,282
4,358
1.42
16
17
18
19
Spain
3,476
3,773
4,302
4,003
4,321
Indonesia
3,208
4,144
4,791
4,541
4,632
Thailand
3,002
3,761
4,072
3,521
3,874
Czech Republic
2,130
2,269
2,668
2,424
2,539
1.41
1.51
1.27
0.83
20
Austria
2,043
2,213
2,491
2,199
2,270
0.74
MN US $
100,000
80,000
60,000
40,000
20,000
-
2009
2013
Share %
37.00
36.00
35.00
34.00
33.00
32.00
31.00
30.00
2009
2013
Among European countries, Germany had 6.11% share in 2009 and 4.87% share in
2013. Italy is next to Germany with 5.59% and 4.40% share in 2009 and 2013
respectively. Turkey is the third biggest European textile exporter, which has
increased its share from 3.66% in 2009 to 3.97% in 2013. Figure 12 shows that there
is a declining trend in share % of Europe as a whole. However, the figure shows that
Turkey has succeeded in maintaining its share. This figure also explains that even
now, European countries have almost one-fourth share in the international market.
Textile Exports of Europe
Austria
Czech
Republic
Spain
United
Kingdom
Netherlands
France
2013
Belgium
2009
Turkey
Italy
Germany
-
2013
2009
Textile Exports of SA
20,000
18,000
16,000
MN US$
14,000
12,000
India
10,000
Pakistan
8,000
6,000
4,000
2,000
-
2009
2013
India
3.00
Pakistan
2.00
1.00
0.00
2009
20013
Textile Exports
14,000
12,000
US
MN
$
10,000
8,000
6,000
2009
4,000
2013
2,000
-
Korea,
Chinese
Republic
Taipei
of
Figure 16 Textile Export of Far East, Far Southeast Asia and Japan
Share %
2009
20013
Korea,
Chinese
Republic
Taipei
of
Japan
Indonesia Thailand
Figure 17 Textile Export Share % of Far East, Far Southeast Asia and Japan
MN US $
12,000
10,000
8,000
6,000
4,000
2,000
-
2009
2013
Share%
4.70
4.65
4.60
4.55
4.50
4.45
2009
2013
Conclusion
All the above discussion shows that developing countries are increasing their share in
textile and clothing exports. We also observed that the developed world still had more
than 25% share in textile and clothing exports despite the fact that there is a
decreasing trend in their exports. It seems that in coming decades, developing world
will be major player in clothing exports. Moreover, China is still having an increasing
trend and it will not give space to other countries, which are already having minor
share.
Many experts have optimistic views about the role of China in textile and clothing
exports. They believe that China is leaving textile and clothing industry. Data issued
by WTO depicts that China is increasing its share in textile and clothing markets.
Growth rate of China is higher than the growth rate of the international market. It
means that China will grow faster than other countries in coming years. Moreover, no
other country is comparable to China for growth in textile and clothing exports. China
is at the top and Italy, the country next to China, has five times less share in textile
and clothing markets. It is a huge gap, which apparently seems difficult-to-fill. The
only solution is increasing production capacity and achieving economies of scales. Or
invite China to invest in countries with very low share in textile and clothing exports.