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    Britain's Delaying Process Has Been Delayed Again, What Is The Impact On China's Textile And Garment Exports?

    2019/4/16 13:51:00 11239

    BritainEuropeTextiles And ClothingExports

                                                                         

         

    The EU process is further delayed until the end of October.

    On 10 may, EU leaders gathered in Brussels to convene an emergency summit to discuss Britain's "off Europe" affairs. Finally, the European Union agreed to postpone the date of "delaying Europe" to October 31st.

    In Britain, the two parties will consult on whether or not to maintain the customs union.

    The customs union is the basis for cross border free trade among EU members. It refers to the abolition of import tariffs among trade unions and the unification of tariffs on third countries outside the EU.

    The maintenance of customs union is the main demand of the opposition Labour Party. This kind of political decoupling from the European Union and economic customs union is also known as "soft off Europe".

    As prime minister Teresa has insisted that there will be no more two referendums, the only way Britain can face now is to take the two way out of Europe.

    No agreement will be detrimental to Europe and Britain, which will have a negative impact on the UK's own economy and the EU economy. It will be bad for the pound and the euro, and the economic activities between Britain and the EU will be seriously affected.

    The impact of Britain's off Europe on China's textile and clothing exports

    Europe's export uncertainty has increased.

    In 2014, Britain exceeded Germany for the first time to become China's largest export market for textiles and clothing in the European Union.

    Since the peak of British exports to Britain reached 12 billion 400 million US dollars in 2015, the export of British textile and apparel has declined for three years in the past three years, with a drop of nearly 40%.

    Britain's position in our export market also dropped rapidly from fifth in 2016 to eighth in 2018, and then fell back to Germany.

    Meanwhile, low cost countries such as Bangladesh have steadily increased their share in the UK.

    The disorderly situation in Britain caused a negative impact on British economy and consumer confidence and further exacerbated my uncertainty about British exports.

    Without agreement, will Europe and China become the biggest winners?

    Although the negative consequences of Ying De Europe will be unavoidable in the short term, if Britain finally breaks away from the EU without agreement, it will not be totally useless for China.

    "No agreement to remove Europe" means that when Britain withdrew from the EU, it did not reach agreement on how to continue trade.

    Without agreement, seamless trade between the UK and the EU will give way to the basic tariffs of the world trade organization.

    At that time, Britain will no longer maintain a customs union. China will face the same market access conditions as the Southeast Asian and South Asian competitors who enjoy the preferential tariff treatment of the EU, which is conducive to enhancing the market competitiveness of Chinese products.

    According to the Agence France-Presse report, the United Nations Conference on Trade and development (UNCTAD) published a report entitled "Britain's no deal with Europe: Trade winners and losers". The report said that if Britain had no agreement to go out of Europe, the countries and regions that had previously enjoyed preferential market access, including other EU countries and smaller British trading partners, would have suffered heavy losses. However, countries that had been subjected to high tariffs before, such as China and the United States, would gain huge benefits, and predicted that China's exports to the United Kingdom could increase by 10 billion 200 million US dollars and the United States increased by 5 billion 300 million US dollars.

    Britain, Europe, When and How? We will wait and see.

         

         

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