Textile quotas among WTO members were eliminated on the first day of 2005 Textiles and Clothing (ATC) on the agreement. However, resistance to quota removal spread in the U.S. and EU. Later, China, European Union and the U.S. in June and November 2005 respectively, with the agreement reached. Sino-US agreement effective from January 2006, a total of 21 groups during 2006-2008 Chinese textile and clothing products of U.S. export controls to include 34 categories. China, EU agreement, June 2005 and effective from 2005 to 2007 during the Chinese textile and clothing exports to the EU covers 10 categories.
On the other hand, mainland and Hong Kong in October 2005 agreed to further Hong Kong under the Mainland and Hong Kong companies for the third step closer to mainland market liberal economic partnership arrangement (CEPA III). Hong Kong origin with other products, to the mainland of Hong Kong origin products to all clothing items, including tariffs agreed to give free treatment starting at 1 January 2006. According to procedures, products which have no existing CEPA rules of origin, local manufacturers by CEPA rules of origin being agreed and met on the applications will enjoy tariff free treatment fixed.
Hong Kong clothing companies are honored for ODM and OEM production. They requested foreign importers and retailers to dress in order to strengthen supply chain management have access to the shop floor at the right time to ensure the material in less time as the lead supplier quality clothing articles, are able to deliver . Increasingly, Hong Kong clothing companies, especially established ones, have shown enthusiasm for brand promotion.
Hong Kong's total exports of clothing to 9% by the year 2005, rose in the first 11 months. While Hong Kong's re-exports of clothing rose by 20%, domestic exports fell by 14%. In the first 11 months of 2005, Hong Kong's clothing exports to the U.S. and EU increased by 11% and 18% respectively. While Hong Kong's clothing exports to Japan closed, flat Chinese mainland for 11% of them declined.
Industry Features
Hong Kong textile industry is a major manufacturing. Its gross output is the highest among all manufacturing sectors, in 2003, 35.9 billion HK dollar amount. The largest manufacturing employer in Hong Kong 28 752 establishments in 1673 as June 2005 with the recruitment of staff. Also in terms of domestic exports is the major earner, the first 11 months of 2005 to take 40% of the total.
Hong Kong's geographical range is not limited to forward-looking development of the textile industry. The majority of garment manufacturers have set up an operation to try to reduce the cost of offshore production facilities. While the rehabilitation of production facilities offshore in Hong Kong has been a steady decline in the number of textile manufacturers.
Hong Kong only a major production center, but also a hub for clothing sourcing globally is not. Hong Kong companies doing business in the textile clothing purchase, sales and marketing, quality control, logistic arrangements, clothing design and are experienced in international and national rules and regulations. Professionalism that they are combined orders and elsewhere simply does not match the services offered. Total 95 889 15 190 establishments with hiring workers, they include the largest import-export business in Hong Kong as a group.
Performance of textile exports to Hong Kong
Hong Kong's total exports of clothing to 9% by the year 2005, rose in the first 11 months. While Hong Kong's re-exports of clothing rose by 20%, domestic exports fell by 14%. Hong Kong re-exports and domestic exports of textile manufacturing rugged performance basically growing Chinese mainland for the transfer, Textiles and Clothing (ATC) under the WTO agreement resulting from the quota removal was believed to be responsible for. But the declining trend in domestic exports in recent months has been some reversal, made the mainland U.S. and EU textiles and clothing by the re-imposition of quantitative restraints due.
U.S. retail sales in the first 11 months of 2005 the company held the previous year, growing about 6% from the same period. In the first 11 months of 2005, year-on-year Hong Kong clothing exports to the U.S. increased by 11%.
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