The textile and clothing market in the European Union crossed the landmark € 200 billion revenue threshold for the first time in 2022. The industry’s pan-European trade group, Euratex, released the data and issued a warning about the pace of the trade deficit’s rise in the process.
In fact, EU apparel imports rose by 36.6 per cent in fiscal 2022. They mainly originated in China and Bangladesh, which is the EU’s top source for clothing.
Together, the two nations contributed to a € 70 billion (or a 48 per cent year-over-year rise) trade deficit in textiles and clothing within the EU in 2022. That is to say, the reverse of the EU’s industrial strategy’s stated objective, which Euratex claims is “strategic independence.”
The impact that inflation is having on the numerous metrics that the industry tracks was also emphasised in the spring report released by Euratex. For instance, the volume of European textile exports only climbed by 7 per cent even while the value of those exports rose by 13 per cent. Uncertainty in EU client countries is being fueled, according to Euratex, by rising energy prices and changes in central bank policies.
According to Euratex, European companies are world leaders in both performance fabrics and high-end fashion products. Future free trade agreements with India should provide “fair” market conditions, the group demanded.
Euratex acknowledged a reversal in garment production in the previous quarter in its quarterly report, which was released in early April, but cautioned of a general decline in industry confidence.
