January US Apparel Imports from China severely hit by quotas
Source: CCPIT TEX Date: 2006-03-17
According to recently released US department of Commerce data, US apparel imports in January from China have clearly been hit by large falls in sensitive quota categories. This comes following embargoes last year created a sense of uncertainty amongst US retailers. Orders have instead been redirected to other low-cost Asian producers such as Bangladesh and India.
Apparel imports from China into the US have been affected by significant decreases in limited categories, the US Department of Commerce recently confirmed.
This comes after uncertainty last year over embargoes saw many US importers instead placing orders with Bangladeshi, Indian or Cambodian producers.
Imports in sensitive China categories plummet
There were large falls in sensitive categories of Chinese apparel as US importers placed orders elsewhere.
As a result, overall shipments from China increased by only 15 per cent in volume in January compared to the same month last year.
China's share of the American market has fallen 2 per cent from the 2005 average as a consequence.
It is also small when compared with China's doubling of volume for 2005 as a whole.
Orders head to other Asian producers
Asian countries such as Bangladesh, Indonesia, India and Cambodia significantly increased exports to the US in January.
Bangladesh was placed third overall in terms of volume which was 32 per cent more than one year earlier.
Indonesian and Cambodian exports to the US were also 30 per cent higher in the first month of the year whilst India's rose by a bigger 46 per cent.
Also profiting at the expense of China was Pakistan whose shipments rose by an impressive 35 per cent.
It is still too early to confirm as to whether China will continue to lose orders from the US.
Some insiders believe that it is "unlikely" China will regain them in the short term.
Latin America not gaining
US safeguard measures introduced last year that resulted in embargoes have clearly caused much concern for US retailers.
Whilst several Asian nations were celebrating better performance, Latin American countries saw their shipments to the US decline.
Mexico, the second largest US supplier, lost 15 per cent volume from last year and Honduras and EL Salvador were also down by similar amounts.
Other countries losing out included Guatemala and the Dominican Republic.
Imports from Jordan also declined by 15 per cent in volume terms despite having preferential US access via its QIZ (Qualified Industrial Zones) system.
In addition, the US last month announced it was taking stronger measures to enforce the three-year textile deal with China.
China is also concerned that it may face anti-dumping measures as companies reduce export prices in order to get export quotas.
