The document discusses the development of the global textile production industry, highlighting its significance and changes in export patterns from 1995 to 2014, particularly after the WTO's Agreement on Textiles and Clothing in 2005. It emphasizes the shifts in export values among various countries, with notable growth in Asian countries like China and Vietnam, while some European countries demonstrated moderate growth despite economic crises. The conclusion indicates a general trend of textile production moving towards Asian economies and Spain within Europe, while countries like Romania and Korea experienced declines in their textile export significance.

1. Olga Loghinovici 22 november 2015
Studentnr.: r0610996
1
Development of textile production with an overview of the export
shifting
The textile industry (T/C) is one of the most globalised industries which plays an
important role in the world trade. For some economies, for instance Pakistan (CIA,
2015) and Indonesia (CIA, 2015), it represents the most crucial sector for export
earnings.
In the last two decades, the global trade has sustained fundamental changes which
have caused significant movements in textile exports. One of them was the approval
for the Agreement of Textile and Clothing (ATC) from WTO members on January 1
1995. This led to a 10 year transitional program, which liberalised the global textile
trade, due to elimination of all textile and apparel product quotas. 2005 was the year
of a new start. From then on, textile and clothing were governed by the general rules
and disciplines embodied in the multilateral trading system. (WTO, 2015)
Another significant change in the global trade was the economic crisis from 2008 until
2009. This caused a worldwide recession with not just high budget deficits and
unstainable debts, but also considerable decreases in textile exports. (Young, 2014)
The following sections of this paper will describe the development and significant
movements of the textile sectors in Europe and the World, where export tables and
related graphics will illustrate the changes in more detail. At the end, a conclusion will
summarize the economy analysis will finish up the context.
Overview of European textile exports from 1995-2014
The textile industry is a varied and diverse industry which comprises a substantial
number of processes from the transformation of raw material into the production of
end results like industrial or hi-tech synthetic textile products. Hence, the textile
sector consists of various subdivisions. For the purposes of the following analysis,
the Harmonized Coding System (HS) is used which is a standardized system of
names and numeral indications to classified traded products.
Textile and textile articles are listed under the HS numbers 50 through 63. These
include inter alia raw materials, articles of apparel, and also textile coverings.(Table
2)
For the overview of the European exports all 28 members of the European Union
(EU-28) and their export trade values between 1995 and 2014 were considered first.
Next, a change in percentage from 1995 to 2014 was calculated, and all EU member
states with less than 50% change rate and less than $1 Billion USD trade value were
eliminated for a closer inspection of significant developments.
Italy and Germany were excluded of the elimination, because both countries are the
two main exporters of the European textile sector over this period of time. Looking at
the 2014 exports of textile products among the individual EU members, these two
countries alone are responsible for almost half (40.3%) of the EU total (Table 1).
Compared to 1995, it shows a moderate increase in percentage.

2. Olga Loghinovici 22 november 2015
Studentnr.: r0610996
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In the following table are all countries listed which remain after the elimination.
Table 1: Significant EU members with related export trade value in Billion USD
COUNTRY 1995 2000 2005 2008 2010 2014 GROWTH %
Bulgaria 2.47 2.01 2.55 2.07 0.83 -66.4%
Czech Republic 1.86 1.77 3.31 4.22 3.57 4.25 +56.2%
Denmark 2.06 2.59 3.83 5.37 4.71 5.65 +63.5%
Germany 23.00 18.60 27.00 34.90 32.90 36.40 +36.8%
Italy 26.30 24.60 32.90 40.20 31.90 37.00 +28.9%
Lithuania 0.39 0.71 1.12 1.30 1.24 1.76 +77.8%
Netherlands 6.20 4.89 8.14 11.40 10.90 15.20 +59.2%
Poland 2.83 2.65 3.79 5.63 5.02 7.01 +59.6%
Romania 1.57 2.51 5.26 5.10 4.05 5.17 +69.6%
Slovakia 0.59 0.78 1.34 1.79 1.64 2.09 +71.8%
Spain 3.79 5.04 8.30 11.80 11.30 16.80 +77.4%
Sweden 1.08 1.26 1.76 2.35 2.18 2.77 +61.0%
EU TOTAL 129.91 119.10 162.44 189.88 161.66 182.06 +28.6%
(Comtrade, 2015)
To see which countries demonstrate a considerable development, the following line
chart is illustrated. (Figure 1)
Figure 1: European member state developments from 1995-2014
(Own illustration)
Between 1995 and 2005, the development of European exports has been especially
successful for Lithuania (with an increase of 77.8%) and Spain (with an increase of
77.4%), although Lithuania’s value is less important for Europe overall.1
Spain, in
contrast, has developed as the third largest textile exporter (9.2%) in Europe since
the year 2000. (Table 1)
1
Shares in textile trade over the years less than 1% in the EU total
0
5
10
15
20
25
30
35
40
45
1995 2000 2005 2008 2010 2014
Bulgaria
Czech Republic
Denmark
Germany
Italy
Lithuania
Netherlands
Poland
Romania
Slovakia
Spain
Sweden

3. Olga Loghinovici 22 november 2015
Studentnr.: r0610996
3
On one hand, investigating the line diagram of European members, it is possible to
assume that Spain took advantage of the quota-free trade from 2005. On the other,
Spain received a motivational boost rather than a significant loss after the financial
crisis between 2008 and 2009. After both events, the Spanish economy
demonstrated a greater increase. (Figure 1)
Slovakia and Romania have also reached additional outstanding developments
(Figure 1). Even if Slovakia shows a significant increase in textile exports, with a
share of about 1%, it does not play an important role of Europe’s total exports.
Furthermore, due to ongoing corruptions, high corporate taxes, high energy costs,
and other factors, Slovakia still has a non-attractive market for Europe. (CIA, 2015)
Looking to the export developments of Romania, it is clear to see that this country
had a strong increasing textile industry from the years 1995 to 2005 (Figure 1). The
year 2005 is a turning point of the Romanian success. From this year on, Romania’s
exports have gradually decreased, because of falling production, the liberalisation of
textile trade and the financial crisis. (Tudor, 2012)
As shown in Table 1, Bulgaria is the country where the textile exports have witnessed
a strong decline of over 60% in the period from 1995 to 2005. This decline is most
significant, which can be assumed as a cause, after the approval of the ATC in 2005.
However, the exports of Bulgaria, with a share of less than 1% on Europe’s total, are
insignificant for the European trade.
After analysing the development of European textile exports, this next section is
concentrating on the World textile exports between the years 1995 to 2014.
Overview of World textile exports from 1995-2014
For the World overview of textile exports, all countries with a trade value over $10
Billion USD from 1995 to 2014 are chosen. The following table lists all significant
countries and their trade values.
Table 4: Significant textile countries of the World with related export trade value in
Billion USD
Country 1995 2000 2005 2008 2010 2014 Growth %
China 39.30 44.90 107.60 179.70 199.50 287.50 86.3%
EU-28
2
29.00 41.10 53.40 45.20 57.80 49.8%
India 8.11 11.10 17.03 22.70 27.10 38.60 79.0%
Turkey 8.31 10.00 18.90 23.10 21.80 29.40 71.7%
USA 18.60 21.90 21.90 22.60 23.60 26.20 29.0%
Bangladesh 4.58 2.49 7.68 13.20 16.70 21.42 78.6%
Korea 17.80 18.20 13.70 13.10 13.70 15.70 -11.8%
Pakistan 10.30 10.60 11.60 13.80 25.4%
Indonesia 6.06 8.20 8.60 10.10 11.20 12.70 52.3%
Viet Nam 2.10 5.31 10.20 13.30 21.53 90.2%
Mexico 4.41 11.30 9.56 6.86 6.27 6.96 36.6%
(Comtrade, 2015)
2
Just Extra-EU trade considered

4. Olga Loghinovici 22 november 2015
Studentnr.: r0610996
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In the table, it is clear to see that China is the biggest export and manufacturing
economy of the World. Over $200 Billion USD were circulated global in 2014. As
second and third country, Germany and India are registered.
The next figure presents developments of the significant textile countries in a line
diagram.
Figure 2: Textile countries with related development flows3
(Own illustration)
China is not just the largest textile economy, it has also shown one of the most
significant developments over the years. Chinese textile exports grew by 86% from
1995 to 2014 without any cutbacks. Significant to see (Figure 2) is the sharp rise
between 2000 and 2008 which is a result of China’s WTO entry in late 2001 and the
gradually removal of textile quotas (Lu, 2012). The economic crisis moderated
Chinese export increases, but this has not led to any losses. (Table 4)
Vietnam is the economy which has shown the greatest export development with an
immense increase of 90.2%. This change has mostly resulted from the WTO entry in
2007 and the affiliation to Trans-Pacific Partnership in 2010. Both approvals have
led to a free textile trade. (CIA, 2015)
India, with a constant growth rate of 79%, presents a further considerable growth.
Textiles and textile products are the largest export groups and a meaningful
generator of employment within this economy. With the abolition of textile quotas and
the liberalization of investments, India has created an international brand economy
with markets of the USA and EU as main importer (Kar, 2015). Furthermore is to say,
3
For a better overview, China was excluded of the line diagram
0
10
20
30
40
50
60
70
1995 2000 2005 2008 2010 2014
EU-28
India
Turkey
USA
Bangladesh
Korea
Pakistan
Indonesia
Vietnam
Mexico

5. Olga Loghinovici 22 november 2015
Studentnr.: r0610996
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that India has not shown losses in the development process over the years. (Figure
2)
Additional significant export increases have shown Bangladesh. This country has
reached a growth rate of 78.6% since the year 2000. The data for Bangladesh is
available just until the year 2011. In the recent years, the textile sector has gone
through a series of factory accidents that have killed over 1,000 workers and strikes
that closed down most of the economic activities (CIA, 2015). These happenings
could have influenced the textile sector significantly and it is possible to assume that
the growth rate could take a turn for the worst in the future.
Turkey has shown similar developments as Bangladesh. Since 1995, Turkey
presents a constant growth with a moderate cutback during the economic crisis,
which has not resulted in a considerable deficit. (Figure 2)
There is just one economy, Korea, which has revealed a negative growth rate over
the years (Figure 2). Before the Korean textile industry has been challenged by the
reduction of trade quotas, this country has demonstrated a constant increase of
textile exports. Korea is one developing country which has not stayed resistant
against the new and strong competitiveness (like China and Europe). (Truett &
Truett, 2011)
Conclusion
It is significant to see that the world countries have all been influenced by the 10 year
transitional program from the WTO since 1995. The final implementation of the
Agreement for Textile and Clothing in 2005 has liberalised the global textile trade
with quota eliminations.
All in all, the approval of the ATC has generated both ‘winners’ and ‘losers’. Most of
the Asian countries show considerable growth rates. China and Vietnam are the two
economies which have the greatest increase from 1995 to 2014, followed by India,
Bangladesh and Turkey. Of these countries, Vietnam can be assumed as a new and
future important production area due to their fast and significant growth. Bangladesh
could also count as a prospective manufacturing area, but because of the recent
negative incidents, a declining growth rate is expected.
Korea has shown the most significant decrease in textile exporting which is why this
country is on top of the ‘losers’ category. In conclusion, it is to say, that the
production of this country is decreasing and hence shifting away.
Europe has presented a positive growth rate between 1995 and 2014. But this
continent had a deep cutback during the economic crisis. Without this occurrence,
Europe could have had a better textile export increase.
Within Europe, Germany and Italy are the main exporters of textiles. These have
shown a gradual increase parallel to the rise of the EU total textile exports since
1995. This means that both countries were, and still are, the most important

6. Olga Loghinovici 22 november 2015
Studentnr.: r0610996
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production areas for Europe. Spain is also a significant EU member in development,
which explains a shift in the European textile production. This country has shown an
incredible rise over the years. In 2014, Spain was the third largest textile exporter
and a very important production place of the European Union. Another significant
change was shown in Romania. In conclusion of this development, it is possible to
say that Romania was an essential textile exporter and manufacturing base up until
2005. After this year, because of a decrease in exports, there followed a shifting
away of production.
To put everything in a nutshell, international textile productions are increasingly
shifting to the Asian economies, most importantly to China, Vietnam, Turkey, India,
and within Europe they are shifting to Spain. A considerable shifting away of
production has shown from Romania, Korea and possibly from Bangladesh.

7. Olga Loghinovici 22 november 2015
Studentnr.: r0610996
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Appendix - Tables
Table 2: Harmonized coding system of textile and textile articles (Comtrade, 2015)
HS Code Name of Subdivision
50 Silk
51 Wool, animal hair, horsehair yarn and fabric thereof
52 Cotton
53 Vegetable textile fibres nes, paper yarn, woven fabric
54 Man-made filaments
55 Man-made staple fibres
56 Wadding, felt, nonwovens, yarns, twine, cordage, etc.
57 Carpets and other textile floor coverings
58 Special woven or tufted fabric, lace, tapestry etc.
59 Impregnated, coated or laminated textile fabric
60 Knitted or crocheted fabric
61 Articles of apparel, accessories, knit or crochet
62 Articles of apparel, accessories, not knit or crochet
63 Other made textile articles, sets, worn clothing etc.
Table 3: EU-28 with related export trade value in Billion USD (Comtrade, 2015)
COUNTRY 1995 2000 2005 2008 2010 2014 GROWTH %
Austria 5.51 4.63 5.61 4.39 2.94 3.11 -43.6%
Belgium 15.70 14.30 17.80 14.10 10.20 -35.0%
Bulgaria 2.47 2.01 2.55 2.07 0.83 -66.4%
Croatia 0.96 0.58 0.72 0.65 0.54 0.78 -18.7%
Cyprus 0.02 0.02 0.02 0.02 0.07 0.17 +88.2%
Czech Republic 1.86 1.77 3.31 4.22 3.57 4.25 +56.2%
Denmark 2.06 2.59 3.83 5.37 4.71 5.65 +63.5%
Estonia 0.25 0.39 0.57 0.69 0.51 0.62 +59.7%
Finland 0.69 0.56 0.71 0.94 0.63 0.72 +42.0%
France 13.40 11.90 15.10 18.40 15.10 16.60 +18.1%
Germany 23.00 18.60 27.00 34.90 32.90 36.40 +36.8%
Greece 2.59 1.93 2.34 2.39 1.94 1.59 -38.6%
Hungary 1.30 1.56 1.96 1.78 1.38 1.75 +25.7%
Ireland 1.24 0.82 0.76 0.62 0.80 0.69 -44.4%
Italy 26.30 24.60 32.90 40.20 31.90 37.00 +28.9%
Latvia 0.18 0.26 0.48 0.51 0.39 0.56 +67.9%
Lithuania 0.39 0.71 1.12 1.30 1.24 1.76 +77.8%
Luxembourg 0.41 0.69 0.81 0.82 0.74 +44.6%
Malta 0.18 0.16 0.17 0.14 0.08 0.06 -66.7%
Netherlands 6.20 4.89 8.14 11.40 10.90 15.20 +59.2%
Poland 2.83 2.65 3.79 5.63 5.02 7.01 +59.6%
Portugal 5.47 4.54 5.07 6.00 5.10 6.14 +10.9%
Romania 1.57 2.51 5.26 5.10 4.05 5.17 +69.6%
Slovakia 0.59 0.78 1.34 1.79 1.64 2.09 +71.8%
Slovenia 0.95 0.63 0.84 1.01 0.82 0.93 -21.0%
Spain 3.79 5.04 8.30 11.80 11.30 16.80 +77.4%
Sweden 1.08 1.26 1.76 2.35 2.18 2.77 +61.0%
UK 9.33 9.00 10.30 11.30 10.10 13.50 +30.9%
EU TOTAL 129.91 119.10 162.44 189.88 161.66 182.06 +28.6%
Table 2 shows all EU-28 member states and their trade values within the EU and to the world summed
up in 1995, 2000 and 2005, due to the ATC. As well as year 2008, 2010 and 2014, due to the financial
crisis and recovery process.