This document is an excerpt from the EUR-Lex website
Textiles after 2005
In order to prepare for the end of the import quota system on 1 January 2005, the European Commission set up a High Level Group to recommend ways of increasing the competitiveness of the European textile industry. In this Communication, the Commission examined several specific measures recommended by the High Level Group and drew the necessary conclusions.
ACT
Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions, of 13 October 2004 - Textiles and clothing after 2005 - Recommendations of the High Level Group for textiles and clothing [COM(2004) 668 - Not published in the Official Journal].
SUMMARY
The WTO Agreement on Textiles and Clothing and all of its restrictions on imports of textiles and clothing were repealed on 1 January 2005. In preparation, the Commission set up a High Level Group for textiles and clothing at the beginning of 2004. The Group comprised representatives of the Commission and the European Parliament, some Member States, industrialists, retailers and importers, European trade associations, trade unions and representatives of local textile and clothing associations, and its mandate was to put forward recommendations in order to improve the sector's competitiveness and facilitate its adjustment to future challenges.
The economic situation in the textile sector has been difficult. Production and employment fell significantly between 2000 and 2003. The European Union (EU) had less success in its major export markets, and the US dollar/Euro exchange rate made the prices of its products less competitive. Finally, the development of the Euro-Med Area and the prospect of quota elimination led to relocation of production.
The High Level Group presented its first recommendations on 30 June 2004. In this Communication, the Commission examined these recommendations, which cover five areas.
Research and innovation
In the area of research and development, the Commission approved several initiatives proposed by the High Level Group, such as the creation of a European Technology Platform for Textiles and Clothing. It also called on the sector to take part in Community programmes in this area, for example the 7th Framework Programme for Research and Development or the Competitiveness and Innovation Framework Programme. The textile sector can also improve its supply chain management by means of initiatives to develop information society technologies.
Education, training and employment
The Commission highlighted the importance of social dialogue as a means of achieving reforms in this area. It agreed with the High Level Group's analysis of a need for a Europe-wide lifelong learning strategy for the sector and to ensure a better match between supply and demand for training. It also drew attention to European programmes offering the possibility of funding in this area, such as the Leonardo da Vinci programme and certain provisions of the European Social Fund.
Other competitiveness-related issues
The Commission evaluated several issues related to competitiveness, including:
Regional aspects
The Commission does not recommend a sectoral approach in the area of regional policy. However, it is necessary to anticipate developments in the sector and put in place appropriate programmes to mitigate the socio-economic impact on those regions where the sector is dominant. Member States must set aside an amount of 1 % of the Structural Funds ' annual contribution for the "Convergence" objective and 3 % of the "Regional competitiveness and employment" objective contribution to cover unforeseen local or sectoral crises linked to economic and social restructuring, or to the consequences of trade liberalisation.
Trade policy issues
With regard to trade policy, the Commission examined four issues which are essential to the competitiveness of European textile companies:
The Commission pointed out, in conclusion, that in addition to all of these measures initiatives would have to be taken at national and regional levels. Moreover, in order to observe the impact of quota elimination, the Commission recommended that the High Level Group continue its work.
Subsequent developments
The High Level Group continued to meet after quotas had been abolished. It expressed its support for the Shanghai Agreement of 10 June 2005. This agreement provided for a three-year adjustment period during which the rate of increase in imports of textiles from China was restricted in certain categories. Following a crisis during which Chinese textiles were blocked in European ports after their import quotas had been exceeded, the EU and China reached an agreement on 5 September 2005 to clear blocked Chinese textile imports.
On 18 September 2006 the High Level Group adopted a follow-up report entitled "European textiles and clothing in a quota-free environment". It noted that the wave of very low-priced imports from Asia had not reached the level feared and felt that the EU would maintain its technological lead until 2020 at least. Nevertheless, the sector requires radical restructuring. The High Level Group recommended that companies cooperate more, set up large-scale groups of companies and focus their efforts on innovation and development.
Although the activities of the High Level Group for textiles and clothing formally came to an end in September 2006, the Group's members highlighted the importance of continuing to monitor the sector's development and of assessing in 2007 the progress made in implementing the recommendations.
Last updated: 26.09.2007