Textile quotas were eliminated among WTO members on the first day of 2005 in accordance with the Agreement on Textiles and Clothing (ATC). However, resistance to the removal of quotas was widespread in the US and the EU. Subsequently, China reached agreements with the EU and the US in June and November 2005 respectively. The agreement between China and the US, in force since January 2006, governs the exports of a total of 21 groups including 34 categories of Chinese textile and apparel products to the US during 2006-2008. The China-EU agreement, in force since June 2005, covers 10 categories of China’s textile and apparel exports to the EU during 2005-2007.
On the other hand, mainland China and Hong Kong agreed in October 2005 to further liberalize the mainland market for Hong Kong companies under the third phase of the China-Hong Kong Closer Economic Partnership Agreement (CEPA III). . Along with other Hong Kong-origin products, mainland China agreed to grant all Hong Kong-origin products, including garments, duty-free treatment from January 1, 2006. In accordance with stipulated procedures, Products that do not have existing CEPA rules of origin will enjoy duty-free treatment upon request by local manufacturers and prior agreement and compliance with the CEPA rule of origin.
Hong Kong clothing companies have a good reputation in ODM and OEM production. They are able to deliver quality garments in short order, as foreign importers and retailers ask garment suppliers to strengthen supply chain management to ensure that the ordered merchandise arrives at the store on time. suitable. Increasingly, Hong Kong clothing companies, particularly established ones, have shown enthusiasm for brand promotion.
Hong Kong’s total apparel exports increased by 9% year-on-year in the first 11 months of 2005. While Hong Kong’s apparel re-exports increased by 20%, domestic exports fell by 14%. In the first 11 months of 2005, Hong Kong’s apparel exports to the US and the EU increased by 11% and 18% respectively. While Hong Kong’s garment exports to Japan stabilized, those to mainland China fell by 11%.
The garment industry is an important manufacturing sector in Hong Kong. Its gross output is one of the highest among all https://xsuit.com/ manufacturing sectors, amounting to HK$35.9 billion in 2003. It is the largest manufacturing employer in Hong Kong, with 1,673 establishments employing 28,752 workers as of June 2005. It is also the main generator of income in terms of national exports, representing 40% of the total in the first 11 months of 2005.
The geographical boundary of Hong Kong has never limited the development of the forward-looking garment industry. Most clothing manufacturers have established production facilities abroad in an attempt to reduce operating costs. However, the relocation of production facilities abroad has resulted in a steady decline in the number of garment manufacturers in Hong Kong.