US Textile Quotas: India Betting on China's Fall

Includes: IFN, IIF

Even as the threat of US action on more categories of Chinese textile and apparel exports looms large, India and Bangladesh have begun betting on a possible fall in China’s share in lucrative US markets. Analysts predict major gains for India in the US market, but warn that the country has to keep in mind close competition from Bangladesh and its own ability to handle bulk orders of these items in time.

Sushma Kindo of The Financial Express

As per US import data, Chinese imports have shown a major upsurge in most of the categories that have been restricted by safeguards in the first eight months of the post-quota regime. China’s total apparel exports have increased by 119.7% in January-August 2005.

Among other countries, Belgium stands out with its total apparel exports to the US growing at 94%. India, however does not come into direct competition with Belgium as it has been increasing its exports in man-made fibre apparel (236%).

Pakistan and Sri Lanka have also increased their total apparel exports to the US, with Sri Lanka faring better than Pakistan both on an aggregate and category wise-basis. Sri Lanka’s total apparel exports to the US grew at 14.5% compared to Pakistan’s 10.94%.

[Financial Express]