Attention: Four Trends In Global Textile Trade

After the COVID-19 epidemic, global trade has changed most dramatically. The World Trade Organization (WTO) is working hard to ensure that trade flows resume as soon as possible, especially in the clothing field. A recent study in the Review of World Trade Statistics in 2023 and data from the United Nations (UNComtrade) show that there are some interesting trends in international trade, especially in the field of textiles and clothing, due to the growing geopolitical tensions and changes in trade policies with China.

Foreign studies have found that there are four trends in global trade that are significantly different from the past. First of all, after an unprecedented trend of crazy purchase and a sharp increase of 20% in 2021, clothing exports will decline in 2022. This may be due to the economic slowdown and high inflation in the major clothing import markets in the United States and Western Europe. In addition, the reduced demand for raw materials needed for the production of personal protective equipment (PPE) has led to a 4.2% decline in global textile exports in 2022, reaching 339 billion US dollars. This figure is far lower than other industries.

Second, although China will remain the world's largest apparel exporter in 2022, with its market share continuing to decline, other low-cost Asian apparel exporters will take over. Bangladesh has surpassed Vietnam as the world's second largest apparel exporter. In 2022, China's market share in global clothing exports will drop to 31.7%, the lowest point in recent history, and its market share in the United States, the European Union, Canada and Japan will decline. The trade relationship between China and the United States has also become an important factor affecting the global clothing trade market.

The third situation is that EU countries and the United States are still the leading countries in the clothing market, accounting for 25.1% of global textile exports in 2022, higher than 24.5% in 2021 and 23.2% in 2020. Last year, the textile exports of the United States increased by 5%, the highest growth rate among the top 10 countries in the world. However, middle-income developing countries are growing steadily, with China, Vietnam, Turkey and India accounting for 56.8% of the global textile exports.

With the increasing attention to offshore procurement, especially in western countries, the regional textile and clothing trade model will become more integrated in 2022, becoming the fourth emerging model. Last year, nearly 20.8% of these countries' textile imports came from their own regions, up from 20.1% last year.

The study found that not only western countries, but also the Review of World Trade Statistics 2023 has proved that even Asian countries are now diversifying their import sources and gradually reducing their dependence on Chinese products to reduce supply chain risks, all of which will lead to better expansion. The fashion industry has fully felt the sequelae of the epidemic because unpredictable customer demand in various countries has affected global commerce and international textile and clothing industries.

WTO and other global organizations are recommitting themselves to multilateralism, better transparency and opportunities for global cooperation and reform, because other small countries have also joined in, competing with the largest countries in the field of trade.