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    The Impact Of The TPP Agreement On The Export Of Domestic Textile And Garment Manufacturing Industry

    2015/10/17 10:20:00 65

    TPPTextilesClothingExportsImports

    During the national day, TPP (p Pacific Strategic Economic Partnership Agreement) became a popular keyword in October 5th.

    TPP

    The basic agreement reached in the US, including zero tariff, free movement of goods services and unified economic regulation standards, includes 12 countries, including the United States, Japan, Australia and Vietnam.

    Although TPP is still away from the formal implementation, the industry is about to give domestic textiles.

    clothing

    There are different views and views on the impact of manufacturing export.

    It is understood that the TPP agreement covers about 20 aspects, including trade in goods, customs procedures, rules of origin and other provisions.

    If TPP is finally implemented smoothly, the trade barriers between its member countries will be reduced, the economic and trade ties will be further closer, and there will be more choices in terms of economic cooperation and industrial chain integration.

    Among them

    Spin

    Vietnam is considered to be China's textile and apparel industry in the field of garment manufacturing export.

    Exit

    Bring some pressure.

    According to public information, Vietnam's exports of clothing and textiles to TPP members account for 70% of the total exports of similar commodities. After the entry into force of TPP, Vietnam's tariffs on clothing and textiles exported to the United States will drop from 17.5% to zero.

    Some agencies predict that after the entry into force of the TPP agreement, Vietnam's exports to the TPP market will increase by 1 times.

    By 2025, Vietnam's exports to the United States will reach $55 billion.

    In the future, Vietnam may steal some orders from Chinese textile and garment enterprises.

    In fact, Vietnam is already taking advantage of the share of Chinese enterprises in the US apparel market. Data show that China's share in the US apparel market in 2010 was 39%, which has dropped 37% in mid 2014, while Vietnam's share in the US apparel market has risen to more than 10%.

    In addition, the rules of origin of TPP require that member countries' clothing textiles enjoy tariff preferences, and must follow the links of yarn, weaving, printing and dyeing to be completed in member countries. At present, about 50% of Vietnamese textile raw materials rely on China's imports to benefit from TPP. After the implementation of the agreement, Vietnam will seek to import TPP raw materials.

    According to the research report, under the influence of zero tariff and rules of origin, short-term or will bring some pressure to China's textile and garment export. However, under the trend that some domestic capacity is gradually pferred to Vietnam and other Southeast Asian countries, domestic leading enterprises in Vietnam, such as Bailong, Lu Tai and Huafu color spinning, are expected to benefit from the implementation of TPP.

    However, the report holds that, despite the completion of the TPP negotiations, Vietnam is expected to become the biggest beneficiary country. China's exports to the US, Japan and Canada may be impacted by Vietnam. However, due to the small export scale of Vietnam's textile and garment industry, its impact on China is relatively limited.

    The report shows that Vietnam's textile and clothing exports are smaller than that of China, and the total export volume of its clothing products is about 7.3% of that of China. With the TPP agreement, the possible increase in trade increments to the US and Canada is less than that of China's existing trade volume.

    Meanwhile, Vietnam's total textile imports amounted to US $9 billion 400 million in 2014, and the total export volume of China's textile yarn was about US $112 billion 100 million over the same period.

    Therefore, the increased demand for raw materials also has limited impact on the export of China's textile and garment industry.

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