US Textile Industry (USA Textile Sector)
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The industry faced tough challenge from its counterparts in China. The result of this competition was unwanted because the US textile industry significant downfall in its business. The exports done by the industry was reduced by almost 5% till September 2007 and it was somewhere around US$12.1 billion.
The industry faced tough challenge from its counterparts in China. The result of this competition was unwanted because the US textile industry significant downfall in its business. The exports done by the industry was reduced by almost 5% till September 2007 and it was somewhere around US$12.1 billion.
US Textile Statistics:
In the year 2007, textile exports of United States declined by 5 percent during first nine months of the year. Exports to trade preference areas also experienced a sharp decline.
US Textile Prices:
According to the Statistics given by Bureau of Labor Statistics, wholesale prices of textiles increased in January from December 2007 and also compared to a year ago levels. Increased textile prices were due to rising cost of raw materials and energy.
The total amount of export of textile goods in the Mexico and CBI region was reduced by 13% and 9% respectively. On the other hand, the imports that are done in accordance with the “yarn-forward” rule of origin were also declined by nearly 11% in the same period. At the same time, the production of the US textile mill and US textile product mill also went down by 12.1% and 4.9% respectively. The downfall in the production of the US textile mill was recorded highest downfall in the last three and half decades.
This huge downward movement in the US textile industry has been caused by the bulk production in the Chinese textile industry. These products are provided at much cheaper rates than the standard rates. These products have captured the majority of the market and because of these the size of the market for the US made textile products became very small. Further, the trade deficit between the United States of America and China, regarding the textile products, has increased in 2007 to US$31.8 billion from US$26.6 billion in the previous fiscal. There is a quota system imposed on the Chinese textile goods. There are a number of textile products that comes under this quota system. At the same time, there are certain textile products that are not under this quota and these Chinese textile products have already captured 60% of the US market in their category.
The main reason behind this development of the Chinese textile industry is the huge government subsidy provided by the Chinese government. This subsidy is provided against the commitment made by the Chinese government to the international community. The US government has been preparing plans to handle this advert situation and to bring back the industry on the previous track as soon as possible.
