Composite Fabric,bonded fabric,Lamination Fabric Lamination Fabric News TPP has limited impact on my country’s linen industry

TPP has limited impact on my country’s linen industry



As an important part of the United States’ strategy of returning to Asia, the Trans-Pacific Partnership Agreement (TPP) has really stirred the hearts of the Chinese people. As a small WTO that accounts for more…

As an important part of the United States’ strategy of returning to Asia, the Trans-Pacific Partnership Agreement (TPP) has really stirred the hearts of the Chinese people. As a small WTO that accounts for more than 60% of the global economy, It precisely excludes China, a major Asian economy. Although the United States has also taken a stance of welcoming China to join the negotiations, its original intention to contain China economically was the original intention of the TPP. Although the TPP is not a trade negotiation targeting the textile industry, the current dozen member states attach great importance to the textile field, especially the United States and Vietnam. Therefore, the agreement has attracted widespread attention in the textile industry. The linen textile and apparel industry, which accounts for about 3% of the textile and apparel industry, will also be affected by this, but the impact will be limited.

First, the impact of tariffs. Linen clothing is mainly exported to the U.S. market in the form of interwoven blends, which are often used by some supermarkets and fast fashion brands. If these products contain more than 50% hemp, the levy on hemp fabrics is only about 6% to 7%. import tariffs, instead of the 17.3% to 30% tariffs on other textiles. It can be seen that even if linen clothing is impacted by zero tariffs from TPP member countries, its impact is relatively small compared to the cotton spinning industry.

Secondly, the impact of the principle of origin. Although U.S. apparel companies and retail companies are more supportive of loose “post-weaving” rules of origin, TPP members can import cheaper yarn and raw materials from outside the region, ultimately reducing product costs. However, there is no conclusion yet on “after weaving” or “from spinning”. If the principle of “from spinning” is followed, there is currently no flax spinning country among TPP member countries. They can only use the “supply shortage” principle to purchase flax yarn from China or other non-member countries such as India and Eastern Europe. If the principle of “after weaving” is followed, it will also be more beneficial for the export of flax yarn. Therefore, due to the smaller share of linen products, the relative impact in the process of trade barriers is weak.

Again, the impact on investment. As the TPP negotiation process advances, more and more U.S. textile companies are switching orders from China to Vietnam. After Vietnam successfully joins the TPP negotiations, the tariff on textile exports to the United States will be reduced from 17% to zero. Therefore, even when purchasing Chinese textile and clothing raw materials, Vietnamese companies still make profits. However, Vietnamese textile companies have also expressed concerns about the TPP’s “starting with yarn” regulations, and their Chinese textile and apparel raw materials cannot meet market demand. In 2014, more Chinese textile factories set their sights on Vietnam. In accordance with the preferential tariff policies of the TPP agreement, Vietnam’s textile industry will also attract investment from companies from Chile, New Zealand, Singapore, Brunei, the United States, Australia, Japan and other countries. As a Chinese linen textile enterprise, should we also consider the future development of TPP, take precautions, invest and set up factories overseas, and enhance the international competitiveness of our enterprises?

Finally, the impact on the printing and dyeing industry. Due to the strict environmental protection policies of TPP member countries, there are certain investment restrictions in dyeing and finishing factories, although domestic companies have also cooperated with local Vietnamese companies to establish dyeing and finishing factories. However, China’s printing and dyeing industry, which accounts for 60% to 70% of the global market share of printed and dyed fabrics, will be difficult to be replaced by TPP members in the short term. Therefore, the more professional Chinese linen printing and dyeing industry will not be too affected by the TPP.

In summary, without joining the TPP, China, as a major textile origin country, will indeed be greatly affected, and Chinese textile and apparel export companies will face more competition and difficulties. However, China is still the world’s largest textile exporter, and it is not easy to take away China’s share of the global market. Especially for Chinese linen textile enterprises with a complete industrial chain and unique competitive advantages, TPP will have extremely limited impact on them.

This article is from the Internet, does not represent Composite Fabric,bonded Fabric,Lamination Fabric position, reproduced please specify the source.https://www.yjtextile.com/archives/13832

Author: clsrich

 
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