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    The Most Stingy Emergency Budget Of The British Government'S Clothing Industry

    2010/6/30 10:11:00 31

    Apparel Industry UK

    The British government launched the so-called "history" in June 22nd.

    Most stingy

    The emergency budget not only sharply cuts public spending, but also raises the domestic consumption tax, and plans to impose a bank tax in order to reduce the huge government budget deficit to zero within 5 years.

    Among them, the consumption tax will rise from 17.5% to 20% from January 4, 2011, and it is estimated that this tax can only be increased by more than 13 billion pounds per year.

    As China's third largest trading partner in the EU market, will Britons cling to pocket consumption will have an impact on China's exports to Britain? How will it affect the overall trade between China and Europe?


    In response, foreign media quoted analysts as saying that the impact of the UK's consumption tax increase on circulation will emerge.

    Retailer

    The crackdown will be more on terminal consumers.

    Specifically, consumers will be greatly affected by price flexibility (fast moving consumer goods), and consumers will have to digest their own costs for high priced consumer goods, or they will shift the loss to downstream suppliers, including Chinese suppliers.


      

    Ministry of Commerce

    Yao Ling, the European Research Department of the international trade and Economic Cooperation Institute, said: "the Institute is conducting an assessment."

    But she also believes that the increase in consumption tax in Britain and other EU countries will not seriously affect the trade between China and Europe.


    At present, the proportion of mechanical and electrical products and high-tech products accounts for 40% to 50% of China's exports to the UK, which is similar to that of the EU market.

    Daily textile (such as clothing, shoes and caps, etc.) is my main export product to the UK (EU).

    In the UK's consumption tax increase, food and children's clothing are excluded from daily necessities, which means that only part of the domestic textile exports will be affected.


    Referring to the whole trade between China and Europe, Yao Ling believes that half of the EU countries, including China's main trading partners, have implemented fiscal tightening policies in Germany, France, Britain and Italy. This policy will have an impact on restraining consumption demand, especially the devaluation of the euro will have a greater impact on China's exports.

    But fortunately, Britain is not in the euro zone, and this exchange rate pressure is slightly lighter.

    But how big the impact is, we must make specific analysis of different products.

    At the same time, she pointed out that although the feedback from the Canton Fair in 2010 showed that the single volume reductions of EU importers were mostly "short lists and small bills", but the bilateral trade volume increased by 20% in the 1~5 months of 2010 compared with the same period in 2009, China's resumption of EU trade in 2010 was almost certain, but it was not easy to exceed the 2008 level.

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