A recent report released by the United Nations Conference on Trade and Development shows that due to the impact of the epidemic, India’s total trade loss was approximately US$348 million. Specific to each industry, the chemical products industry lost about 129 million US dollars, the textile and clothing industry lost about 64 million US dollars, the automobile industry lost about 34 million US dollars, the electronic machinery industry lost about 12 million US dollars, the leather industry lost about 13 million US dollars, and the metal industry lost about 13 million US dollars. The and metal products industry suffered losses of approximately US$27 million, and the wood products and furniture industry suffered losses of approximately US$15 million.
China is India’s largest importer As for the country of origin, the Indian economy has suffered a huge impact, which will greatly increase the risk of China’s exports to India. At the same time, India has been taking constant actions recently, including imposing tariffs, customs seizures, boycotting domestic products, blocking APPs, and strengthening the review of certificates of origin… The tense political situation in India has also cast a shadow on the prospects of the textile and apparel industry.
India has launched an anti-dumping investigation against Chinese polyester chips, and the amount of money involved in the textile industry is growing rapidly
On August 5, 2020, the General Administration of Trade Remedies of the Ministry of Commerce and Industry of India issued an announcement, ruling that the price of Chinese-made polyethylene terephthalate (Polyethylene Terephthalate, also known as PET Resin) was lower than normal during the investigation period. Prices of high value enter the Indian market, causing substantial damage to Indian domestic industries and threatening further damage, and there is a causal relationship between dumping and damage. Therefore, it is recommended that a temporary anti-dumping tax of US$15.54-146.11/ton be levied on polyethylene terephthalate produced by the respondent enterprises, and a unified temporary anti-dumping tax of US$200.66/ton be levied on other enterprises.
“In recent years, India has initiated anti-dumping investigations against China more frequently.” At the third economic and trade early warning situation analysis meeting, Li Wei, deputy inspector of the Legal Affairs Department of the China Council for the Promotion of International Trade, gave an example He said that taking viscose filament as an example, although India has long relied on imports, Indian companies and the government have repeatedly used tariffs, anti-dumping and other trade barrier measures to prevent the entry of Chinese products. In 2005, India initiated an anti-dumping investigation into Chinese viscose filament yarn. In 2017, it launched an anti-dumping sunset review investigation. In 2018, it made the second anti-dumping sunset review final ruling. From 1995 to 2004, although India launched a large number of anti-dumping investigations against my country, the amount involved was much lower than that of the United States and the European Union. Since 2005, the amount of India’s anti-dumping duties against China has increased rapidly, reaching billions of dollars by 2016. At present, the product scope of India’s anti-dumping investigation against China is getting wider and wider. The top three are chemical raw materials and products industry, pharmaceutical industry, and textile industry. The amount involved is showing a rapid growth trend.
In the early stage, the Indian Man-made Fiber Industry Association also applied to start countervailing measures against China’s viscose filament yarns older than 60 generations. Open an investigation. India’s 500-550 kinds of goods in leather products, agricultural products, textiles, etc. are in competition with China. Judging from India’s current tough attitude towards Chinese goods, it is not impossible to impose additional tariffs on textiles in the future. There is currently a strong voice in India for this. In particular, the risks in the textile industry deserve the company’s focus.
The foreign trade prospects of the textile and garment industry are clouded, and textile companies need to change their thinking and be alert to risks
Overseas epidemics are still spreading, and the number of confirmed cases of COVID-19 is increasing by tens of thousands every day, which has created greater resistance to the foreign trade exports of textile and apparel products. At the same time, in addition to India, the tense relations between China and the United States and the Vietnam-EU Free Trade Agreement have also cast a shadow on the prospects of the textile and apparel industry.
In the United States: In the early morning of July 21, the Bureau of Industry and Security of the U.S. Department of Commerce suddenly announced that 11 Chinese companies would be included in the “Entity List”, including Changji Esquel. Textile, Hotan Taida Clothing, and Nanjing Xinyi Cotton Textile are three textile companies. On May 24, the Huafu subsidiary of the world’s largest color spinning company was also included in the list.
Vietnam: The Vietnam-EU Free Trade Agreement will officially come into effect on August 1. According to the agreement, the EU will immediately eliminate 85.6% of tariffs on Vietnam, which is equivalent to Vietnam’s tariff on the EU. 70.3% of exports. After seven years, 99.2% of tariffs on Vietnam will be eliminated, which is equivalent to 99.7% of Vietnam’s exports to the EU. The EU promises to import the remaining 0.3% with zero tariffs in a quota manner. On the contrary, Vietnam will eliminate 48.5% of tariffs on EU exports (accounting for 64% of total imports). 91.8% of tariffs (accounting for 97.1% of total imports) will be eliminated after 7 years, and 98.3% of tariffs (accounting for 99.8% of total imports) will be eliminated after 10 years. At present, Vietnam’s clothing and textile industry has occupied a place in the international market. In the past, the purchasing strategies of European and American clothing companies were from China and many other countries. Now it has been changed to China accounting for 30% to 50%, Vietnam accounting for 10% to 30%, plus other countries. The formal entry into force of this free trade agreement will undoubtedly help Vietnam further expand its exports. At the same time, it may further intensify the competition in foreign trade in my country’s textile industry.
At present, my country’s textile industry is facing overcapacity, export sales are facing the epidemic and political factors, and now coupled with the diversion of export orders caused by the Vietnam-EU Free Trade Agreement, the textile industry is facing This yearIt can be said that we are in dire straits. For textile companies, under the influence of the epidemic, on the one hand, they must seize the orders in hand; on the other hand, they must not put their eggs in one basket and turn part of their attention to the domestic market. In terms of foreign trade, they must also actively expand the relative political risks. For markets in smaller countries, try to be prepared.
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