Textile industry association Euratex reports that for the first time in history, the European Union’s trade in textiles and clothing exceeded the €200 billion mark in 2022.

This record growth in total trade is mainly due to a sharp increase of clothing imports of +36.6% in value – especially from China and Bangladesh –which far outweighs a positive export performance.

As a result, the EU’s trade deficit in textiles and clothing increased to €70 billion in 2022, which is 48% higher than in 2021.

With imports now reaching €140 billion, it will be a challenge to effectively control quality and compliance

This growing deficit is a cause for concern as the stated objective of the EU’s Industrial Strategy is to strengthen resilience and “strategic autonomy”. Instead, dependency has increased, and has becomes critical in certain raw materials and fibres.

The deficit also challenges the European Commission’s ambition to promote high quality and sustainable textile products across the Single Market – regardless of where they have been produced. 

With imports now reaching €140 billion, it will be a challenge to effectively control quality and compliance and market surveillance will need to be stepped up massively, without becoming a barrier to trade, according to Euratex director general Dirk Vantyghem.

“We also need to strengthen our efforts on the EU’s export performance to rebalance our trade relations with the rest of the world,” he said. “EU companies are world leaders in high-end fashion products and in technical textiles and more needs to be done to support their activities in both established and emerging markets. The ongoing free trade agreement negotiations with India, for example, should focus on improving market access and ensure “fair” competition with local companies.”

The Euratex Spring Report highlights significant differences between trade in value and in volume. The EU’s export of textile products has increased by 13% in value, but actually dropped by nearly 7% in volume. This obviously reflects the very high inflation figures from last year, caused initially by rising energy prices and changing central bank policies. This in turn is leading to consumer uncertainty, resulting in low demand and gloomy prospects for the entire value chain.

“This report confirms once again that the textile industry is one of the most globalised sectors of the European economy, and underlines the importance of taking that global dimension into account when designing EU and national policies,” Vantyghem said. “Failing to do so may have a devastating effect on the global competitiveness of the European textile industry.

 “It is essential to stabilise inflation, restore consumer confidence and ensure a level playing field for all operators in the textile industry. On that basis, European companies can prosper and retain quality jobs for 1.3 million workers.”

www.euratex.eu