After the COVID-19, global trade has undergone the most dramatic changes. The World Trade Organization (WTO) is working hard to ensure that trade flows resume as soon as possible, especially in the clothing field. A recent study in the 2023 Review of World Trade Statistics and data from the United Nations (UNComtrade) shows that there are some interesting trends in international trade, especially in the fields of textiles and clothing, influenced by increasing geopolitical tensions and changes in trade policies with China.
Foreign research has found that there are four distinct trends in global trade. Firstly, after an unprecedented frenzy of purchasing and a sharp 20% growth in 2021, clothing exports experienced a decline in 2022. This may be attributed to the economic slowdown and high inflation in the major clothing import markets of the United States and Western Europe. In addition, the reduced demand for raw materials required for the production of Personal Protective Equipment (PPE) has led to a 4.2% decrease in global textile exports in 2022, reaching $339 billion. This number is much lower than other industries.
The second scenario is that although China remains the world’s largest clothing exporter in 2022, as market share continues to decline, other low-cost Asian clothing exporters take over. Bangladesh has surpassed Vietnam and become the world’s second largest exporter of clothing. In 2022, China’s market share in global clothing exports dropped to 31.7%, which is the lowest point in recent history. Its market share in the United States, the European Union, Canada, and Japan has declined. The trade relationship between China and the United States has also become an important factor affecting the global clothing trade market.
The third scenario is that EU countries and the United States remain the dominant countries in the clothing market, accounting for 25.1% of global textile exports in 2022, up from 24.5% in 2021 and 23.2% in 2020. Last year, the United States’ textile exports increased by 5%, the highest growth rate among the top 10 countries in the world. However, middle-income developing countries are growing steadily, with China, Vietnam, Türkiye and India accounting for 56.8% of the global textile exports.
With increasing attention to offshore procurement, especially in Western countries, regional textile and clothing trade models have become more integrated in 2022, becoming the fourth emerging model. Last year, nearly 20.8% of textile imports from these countries came from within the region, an increase from 20.1% last year.
Research has found that not only Western countries, but also the 2023 Review of World Trade Statistics has proven that even Asian countries are now diversifying their import sources and gradually reducing their dependence on Chinese products to reduce supply chain risks, all of which will lead to better expansion. Due to the unpredictable customer demand from various countries affecting global commerce and the international textile and clothing industry, the fashion industry has fully felt the aftermath of the epidemic.
The World Trade Organization and other global organizations are redefining themselves to multilateralism, better transparency, and opportunities for global cooperation and reform, as other small countries join and compete with the largest countries in the field of trade.
Post time: Sep-05-2023