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    Can Japan Cancel Its MFN Tariffs And Advance The Textile Industry?

    2019/4/30 16:03:00 12592

    JapanCancellation Of MFN Tariff

    As is known to all, the General Administration of Customs has announced that the Ministry of finance of Japan has decided to no longer grant preferential tariffs on GSP for China's exports to Japan since April 1, 2019.

    Our country exports about 12 billion dollars a year, which means that the total export volume is about 3% of the average tariff, and some commodities even go up to 10%.

    This undoubtedly adds a strong fire to the textile and clothing market of "internal and external troubles".




    It is understood that China's textile and clothing showed a monthly increase, but the quarterly decline.

    In March, textiles and garments exported 18 billion 180 million US dollars, an increase of 28.4%, of which 9 billion 520 million US dollars in textile exports, an increase of 36.4%, and clothing exports 8 billion 660 million US dollars, an increase of 20.6%.

    The cumulative export volume of US $56 billion 330 million in the first quarter decreased by 1.8%, of which 26 billion 900 million US dollars in textile exports, an increase of 3.9%, and clothing exports 29 billion 430 million US dollars, down 6.5%.




    China's textile and clothing exports are facing multiple difficulties, including not only the adverse environment of foreign countries, but also a series of environmental factors such as environmental protection, cost increase and so on. The export pressure will superimpose or will make the textile market season no longer exist this year.




    It is understood that in 2018, the top three exporting countries of China's textile raw materials and products were the United States, Japan and Vietnam, and accounted for 61% of the total, accounting for 34%, 15% and 12% respectively.

    The share of China's textiles exported to Japan is more than 60% in the Japanese import market. The proportion is so high that the consequences can be imagined.

    However, Japan has retained the GSP treatment of Southeast Asian countries such as Vietnam, Kampuchea, Indonesia and Bangladesh. This will make the tariff rate of import tariffs on textiles and raw materials in Japan be 1.06~14.2 percentage points higher than those of the above countries. China's related commodities will face more severe competition in the Japanese market.




    From 2017 to March -2019, China's export volume to Japan showed an overall growth trend, and exports to Japan in March 2019 amounted to nearly 1 billion 700 million US dollars, up 16.8% over the same period last year.

    It is understood that Japan did not suddenly announce the end of China's GSP preferential treatment. As early as November 2016, the Ministry of finance of Japan formally announced that the "preferential tariff" system should be re adjusted.

    The new standard exclude 5 countries from China, Mexico, Brazil, Thailand and Malaysia from the list of tariff relief lists of developing countries, and will terminate the GSP policy from 2019.

    At present, domestic low-end products flow into central and southern Asia, textile diversion is more obvious, domestic small and medium-sized textile enterprises are constantly facing the phenomenon of shutting down production and shutting down.

    The implementation of this policy is also reasonable, but it still has an indelible impact on the textile industry in 2019.




    In March 2019, China's overall textile product inventory index was 47.76, an increase of 2.9 compared with February, of which 9.26% of March's inventory fell by 9.26%, compared with last month.

    According to my analysis of the agricultural product network, the current garment delivery rate is slightly higher than that of the home textile market, and the blended fabric is more favored by the market.

    The raw material inventory of large weaving factories is maintained at about 1-2 months, and is in the trend of buying and using. The storage of grey fabric is more serious, and it is maintained for about 1 months.

    The market outlook is expected to be weak.




    At present, China's textile industry is facing the situation of eliminating backward production capacity and developing new markets.

    For the enterprise level, first, we should speed up the pfer of factories and invest in developing countries and low cost countries that still enjoy the GSP treatment; two, we should actively explore new markets and fill market vacancies; three, upgrade industrial upgrading, technological development and independent brand building, increase quality competitiveness, pform the low cost advantage into a comprehensive industrial chain, high quality, high service and other comprehensive advantages, and increase the gold content of our brands.


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