Industry News
EU-UK Trade Figures Confirm: Brexit Has Been a “Lose-Lose” Deal for the Textile Industry
The latest trade data (January-September 2021) shows a dramatic drop in imports and exports of textile goods between the EU and the UK, with significant losses for companies on both sides. The situation is likely to get worse, as the full customs regime between UK and EU has entered into force on January 1, 2022.
All the sectors have been already suffering a significant loss in the past year and textiles has been no exception. Compared to the same period in 2020, between January and September the EU recorded a dramatic fall in imports (-44%, corresponding to almost €2 billion) and in exports (-22%, corresponding to €1.6 billion). The data show that the most impacted EU countries on the export side are Italy, Netherlands, Belgium, and Germany while on the import side the most impacted countries are Germany, Ireland, and France. Among the Textile and Clothing sectors, clothing articles are facing the most severe drop in both imports and exports, corresponding to a total trade loss of more than €3.4 billion over the 9 months period. Despite these alarming figures, the UK continues to be the most important export market for EU textiles and clothing.
Concerning the impact on the UK textiles sector, in May 2021 the UK Fashion and Textile Association’s (UKFT) surveyed 138 businesses, including leading UK fashion brands, UK textile manufacturers, wholesalers, fashion agencies, garment manufacturers, and retailers.
The results of the survey showed that: 1. 71% currently rely on imports from the EU 2. 92% are experiencing increased freight costs 3. 83% are experiencing increased costs and bureaucracy for customs clearance 4. 53% are experiencing canceled orders as a result of how the EU-UK agreement is being implemented 5. 41% had been hit by double duties 6. The vast majority of the surveyed companies declared they are looking to pass the increased costs on to consumers in the next 6-12 months.
The results of the survey showed that: 1. 71% currently rely on imports from the EU 2. 92% are experiencing increased freight costs 3. 83% are experiencing increased costs and bureaucracy for customs clearance 4. 53% are experiencing canceled orders as a result of how the EU-UK agreement is being implemented 5. 41% had been hit by double duties 6. The vast majority of the surveyed companies declared they are looking to pass the increased costs on to consumers in the next 6-12 months.
This situation is expected to get worse. Since January 1, full customs controls are being implemented. It means that export and import rules have become stricter: products should already have a valid declaration in place and have received customs clearance. Export from Britain to the EU must now have supplier declarations and the commodities codes changed.
EURATEX calls on the European Union and the United Kingdom to effectively cooperate to address, solve and remove the issues in the EU-UK Trade agreement that currently prevent smooth trade flows between the two sides of the Channel. It is causing considerable losses for textile companies both in the EU as well as in the UK.
About EURATEXEuratex is a European organization based in Brussels, Belgium. It represents the European textile and clothing industry, and its main objective is to create an environment within the European Union that is conducive to the manufacture of textile and clothing products. It promotes the interests of its members while taking into account the European Union's institutional framework and its international obligations.
Textile and apparel manufacturing is an essential pillar of the local economy across the EU regions. EURATEX member federations represent in the EU some 160,000 companies with a turnover of €162 billion, employing 1.5 million workers. The EU is the world’s second-biggest exporter of textiles and clothing with 24% and 29% of world sales respectively in 2019. The textile and fashion products made in the EU are exceptional in regards to the respect of the environment, consumer safety, and labor rights. EURATEX has an ambitious program to enhance the sustainable growth of the European textile and clothing industry.
EURATEX provides the EU institutions with accurate data and useful tools for making the policies that enhance Europe’s economic growth and encourage jobs creation. They are committed to facilitating access of our companies, which are predominantly SMEs, to European actions. EURATEX is focused on a few clear priorities: genuine industrial policy, research and innovation support, free and fair trade, and sustainable textiles.