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EU and UK textile industries losing business because of Brexit, trade data shows

Camilla Rydzek
18 January 2022

New trade data has shown a sharp drop in imports and exports of textile goods between the EU and UK, signifying losses for companies on both sides, according to the European Apparel and Textile Confederation.

Between January and September 2021 the EU recorded a -44% fall in imports, corresponding to almost £1.6 billion (€2 billion) and a -22% drop in exports, corresponding to £1.3 billion (€1.6 billion), compared to the same period in 2020.

The clothing segment in particular were impacted, causing a total trade loss of more than £2.8 billion (€3.4 billion) over the nine months.

Whilst the UK continues to remain the most important export market for EU textiles and clothing, the trading situation is expected to get worse as the full customs regime between the UK and EU came into force on 1 January.

A study by the UK Fashion and Textile Association’s (UKFT) from May 2021 revealed that a large majority of businesses and stakeholders in UK textiles sector relied on imports from the EU. It also found that over half of respondents said they had experienced cancelled orders because of the EU-UK agreements being implemented.

A vast majority said they expected increased freight costs and that they would pass the additional costs to consumers within the next year.

From the EU side Italy, the Netherlands, Belgium, and Germany were particularly effected by reduced export trade, while Germany Ireland and France were particularly effected with reduced import trade.

EURATEX is now calling on the European Union and the United Kingdom to effectively cooperate to remove the issues in the EU-UK Trade agreement to ease trade.

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