Required Report - public distribution

**Date:** 04/11/2005

**GAIN Report Number:** TW5011

TW5011

**Taiwan**

**Cotton and Products**

**Annual**

**2005**

**Approved by:**

![](media/image1.wmf)Scott Sindelar

American Institute in Taiwan

**Prepared by:**

Chiou-Mey Perng & Eric Trachtenberg

**Report Highlights:**

Taiwan\'s total cotton imports in MY05/06 are forecast at 1.04 million
bales. The United States is expected to remain the major cotton supplier
to Taiwan with market share slightly under 50 percent. Despite the
ongoing contraction in the textile sector, the stable import outlook is
primarily a result of lower prices compared with 2004. Taiwan textile
firms will continue moving up the value chain to remain competitive with
Southeast Asia and China.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Taipei \[TW1\]

\[TW\]

**Table of Contents**

[Executive Summary 3](#executive-summary)

[Production 3](#production)

[Consumption 3](#consumption)

[Status of Taiwan's Textile Sector 3](#status-of-taiwans-textile-sector)

[Taiwan Textile Investment Patterns
3](#taiwan-textile-investment-patterns)

[Prospects for the Taiwan Textile Sector
4](#prospects-for-the-taiwan-textile-sector)

[Trade 5](#trade)

[Yarn & Fabrics Trade 5](#yarn-fabrics-trade)

[Policy 5](#policy)

[Tariffs for Man-made versus Cotton Products:
6](#tariffs-for-man-made-versus-cotton-products)

[PRC Cotton Imports 6](#prc-cotton-imports)

[Marketing 6](#marketing)

[Statistical Tables 8](#statistical-tables)

[Table 1. Cotton Production, Supply and Demand, Metric Tons
8](#table-1.-cotton-production-supply-and-demand-metric-tons)

[Table 2. Import Trade Matrix for Raw Cotton, Metric Tones
9](#table-2.-import-trade-matrix-for-raw-cotton-metric-tones)

[Table 3. Cotton Import Price CIF, Cents per Pound
10](#table-3.-cotton-import-price-cif-cents-per-pound)

[Table 4. Number of Operating Spindles in 2002 - 2004 by Yarn Type
11](#table-4.-number-of-operating-spindles-in-2002---2004-by-yarn-type)

[Table 5. Taiwan Imports of Textile Products for 2003 & 2004
12](#table-5.-taiwan-imports-of-textile-products-for-2003-2004)

[Table 6. Taiwan Exports of Textile Products for 2003 & 2004
12](#table-6.-taiwan-exports-of-textile-products-for-2003-2004)

[Table 7. Cotton Yarn & Cotton Fabric Production, 1998-2003
12](#table-7.-cotton-yarn-cotton-fabric-production-1998-2003)

[Table 8. Cotton Yarn Imports for 2002 - 2004, Metric Tons
13](#table-8.-cotton-yarn-imports-for-2002---2004-metric-tons)

[Table 9. Cotton Yarn Exports for 2002 -- 2004, Metric Tons
14](#table-9.-cotton-yarn-exports-for-2002-2004-metric-tons)

[Table 10. Imports of Cotton Fabrics for 2002 -- 2004, Metric Tons
15](#table-10.-imports-of-cotton-fabrics-for-2002-2004-metric-tons)

[Table 11. Exports of Cotton Fabrics for 2002 -- 2004, Metric Tons
16](#table-11.-exports-of-cotton-fabrics-for-2002-2004-metric-tons)

# Executive Summary

Total cotton imports in MY05/06 are forecast at 1.04 million bales,
unchanged from MY04/05. Imports are not expected to decline because
lower cotton prices may support trade despite continuing declines in the
Taiwan textile sector. This continues a recent tendency for cotton
consumption and imports to move in different directions when prices
affect trade and stocks. The average CIF import price during the first
three months of 2005 was 53 cents per pound, which is down 22 percent
from the 2004 level of 68 cents per pound. Future demand for cotton
fiber will be decided by two factors: the total number of operating
spindles and the world cotton price. The U.S. market share for imported
cotton is expected to increase to nearly 50 percent because of its
competitive quality and price. Although the Multifiber Agreement ended
on January 1, 2005, it is not expected to have a dramatic short-term
effect on Taiwan's textile industry.

[]{.mark}

# Production

Taiwan does not produce cotton. All cotton demand is supplied by
imports.

# Consumption

Taiwan cotton consumption in MY05/06 is expected to total 1.04 million
bales. This is the same level in MY04/05 but down from 1.18 in MY03/04
and 1.24 million bales in MY02/03. All of the recent declines are a
result of falling capacity in Taiwan's textile industry. According to
the Taiwan-based China Textile Institute, 80 percent of all textiles are
used in apparel while just 10 percent are used in home decoration and
industrial applications each.

## Status of Taiwan's Textile Sector

The textile industry has traditionally been a major engine of Taiwan's
economic growth. In 2004, Taiwan was the world's sixth largest textile
exporter and was responsible for 9.7 percent of total employment. In
addition, the Taiwan textile industry earned \$12.5 billion in export
revenue with a \$10 billion trade surplus. Despite rapid growth in high
technology exports in the last ten years, textile exports are still a
major source of Taiwan's foreign exchange.

Taiwan is a key producer of synthetic textiles, especially polyester. In
2003, it produced 10.1 percent of all synthetic textiles sold worldwide,
the second largest total after China. Much of this capacity comes from
long-standing ties between textile producers and the petrochemical
industry. As a result, synthetics account for 60 to 70 percent of total
textile production. In 2005, higher oil prices will likely increase
cotton's market share. Over the longer term, the relatively low price of
chemical fiber will boost production, although cotton will retain its
market niche, especially in middle income and wealthy countries.

Taiwan's spinning and textile industry is in a process of long-term
decline, although the rate of shrinkage is slowing slightly. The total
number of active spindles declined to 1.80 million in 2004, spread over
81 textile mills. This is a six percent decrease compared with 1.91
million in 2003 (see *Table 4*) and down 47 percent from 3.40 million
spindles in 1995. In the next year, another 5 percent of spindles will
likely be idled or moved overseas, with the total expected to settle at
1.5 million by 2010. Taiwan's export-oriented textile industry continues
to lose competitiveness because of high wages, increasing environmental
protection requirements, expensive land and increasing competition from
other Asian countries. The relocation of downstream firms such as
apparel manufacturing out of Taiwan has also increased pressure on the
textile sector.

## Taiwan Textile Investment Patterns

To enhance their competitiveness, Taiwan textile firms are continuing to
invest elsewhere in Asia, especially in Mainland China, Thailand,
Vietnam, Cambodia and Myanmar (Burma). Political instability and
unattractive business climates have reduced investment in both Indonesia
and the Philippines. In the future, investment is likely to shift to
India, Bangladesh, Pakistan or even Russia. Despite this
internationalization of production, Taiwan textile firms still make many
of their buying decisions in Taiwan, especially for factories located
outside Mainland China that export to third countries. Taipei's
importance is magnified in target countries for Taiwan investment
because local firms tend to follow the example set by foreign investors.

Taiwan textile investment in the PRC totaled \$408 million in 2003
alone. PRC-based Taiwan-owned factories tend to make decisions locally,
especially for products designed for the domestic Chinese market.
Chinese-based factories function more autonomously because of the
complexity of China's local import and trade regulations, especially the
quota system for imported agricultural products. Sharp increases in
Chinese exports to Western countries have fueled concern that safeguard
duties may be used to slow PRC exports. The safeguards issue, combined
with shortages of capital, labor and electricity and political pressures
on Taiwan business people by the PRC government has cooled interest by
Taiwan textile firms in the PRC. Industry sources said the labor
shortage is particularly severe around Guangdong Province in southern
China, with between 15 to 20 percent of jobs unfilled and up to 40
percent of plant capacity idle.

## Prospects for the Taiwan Textile Sector

The fate of firms remaining in Taiwan will depend on their ability to
adapt to increasing competition. Although the rate of adjustment is
slowing as the number of weaker firms falls, companies with capacity
remaining in Taiwan must diversify their markets and move up the value
chain to high-end textiles and garments, performance fabrics, or branded
products. Taiwan's strengths in information technology (IT) research and
development could help it become competitive in the manufacture of
technical fabrics along with high-quality and specialized textile
products such as blended acrylic and yarn products that require high
quality weaving. Taiwan's IT strength could also allow it to produce
smaller lots more efficiently, allowing the mass customization of
products and to meet changing consumer tastes. Taiwan's prospects for
the production of technical textiles will also be boosted if local firms
play a role in standards setting. As they move up the value-added chain,
Taiwan firms also reduce costs by importing labor, mostly from Southeast
Asia. In some plants, workers from the Philippines, Vietnam, and
Thailand make up between 25 to 30 percent of the total workforce.

To avoid direct price competition with PRC or Southeast Asian textile
products, Taiwan-based mills need to deepen their specializations in
functional products while cutting production of lower-value and less
profitable commoditized products. A few spinners have built up a
streamlined supply chain through strategic alliances that runs from yarn
to fabric to final garments. Through these alliances, Taiwan firms may
remain competitive in the world textile market. At the same time, Taiwan
is expected to retain most of the textile industry's head office
functions because of Taiwan's relatively well-developed legal system,
abundant capital and a fairly transparent trading system. As a result,
most of the procurement, finance, logistics/supply chain and sales will
be based in Taipei, especially for mills located outside Mainland China.
Taiwan offices are expected to continue purchasing more than 1.3 million
bales a year of cotton, even if the product is shipped to offshore
factories.

Most industry leaders in Taiwan believe that local production will
decline more slowly in the immediate future than in the last ten years
and will level off by 2010. Competitive pressures and the expiration of
the 1974 Multifiber Agreement on January 1, 2005 that ended most textile
quotas has forced the Taiwan textile industry be more quality driven. On
the other hand, although Taiwan is a WTO member, its producers need to
prepare for a trading environment where competing countries are signing
preferential trade agreements that could reduce Taiwan's competitiveness
in lucrative export markets. Most significant would be moves by the U.S.
or China to develop trade agreements with textile suppliers in Latin
America, South Asia or Southeast Asia.

# Trade

Despite falling cotton consumption, anticipated lower prices in MY05/06
will likely support imports at around 1.04 million bales. Taiwan's MY
04/05 imports were 1.04 million bales, up slightly from 1.01 million
bales in MY03/04. Although Taiwan's cotton consumption is supplied
entirely by imports, demand and imports sometimes do not move together
when prices fluctuate. The average CIF import price during the first
three months of 2004 was 53 cents per pound, down 22 percent from the
2004 level of 68 cents per pound. This figure is still slightly above
the 51 cents per pound in 2003 and 40 cents in 2002. The last peak was
63 cents per pound in 2001. When prices are high (such as during 2004),
cotton stocks tend to decline while the reverse happens when prices are
low. In 2005, tight (or in yarn, negative) margins and a declining
spindle count will likely prevent strong import growth despite lower
prices.

The U.S. market share is expected to approach 50 percent through MY04/05
and as a result of the U.S.'s price competitiveness, low foreign matter,
long staple, consistent quality and reliable delivery. These
characteristics continue to make U.S. cotton the foundation of Taiwan's
textile formulations. Other origins tend to compete with each other more
than with U.S. cotton. In MY03/04, the United States had a market share
of 48 percent, up from 44 percent in MY02/03. These levels are markedly
higher than pre-2000 historical average of 35 percent of Taiwan's total
cotton imports. In MY01/02, low prices gave the U.S. an unprecedented 54
percent of the cotton market with total exports exceeding 830,000 bales.
As Taiwan moves up the value chain, U.S. exports will likely claim a
larger share of the market in the future, with market share expected to
settle just under 50 percent.

In MY03/04, Brazil became Taiwan's second largest supplier after the U.S
while imports from Pakistan rose sharply to third place. In MY04/05,
industry sources expect Brazil to remain in second place after the
United States. Taiwan imports cotton based on both price and quality.

## Yarn & Fabrics Trade 

Taiwan generally imports lower valued cotton yarns and exports higher
value cotton yarns. This trend is not expected to change. In 2004,
Taiwan's textile sector experienced both intensifying competition and a
global downturn. *Tables 6 & 7* show substantial 2004 export declines
for fabric and apparel along with import declines for cotton yarn.
However, exports of cotton fabric rose substantially because of growing
demand in China, Indonesia, Sri Lanka, Thailand and Cambodia, much of
which is made into garments in Taiwan-owned factories. This indicates
that cotton yarn and fabric sectors remaining in Taiwan are still
competitive despite the reduction of cotton spindles and the relocation
of garment factories overseas. Taiwan's largest markets are Hong Kong,
the PRC, Southeast Asia and the United States.

# Policy

The tariff on cotton is zero. The applied rates for textile products are
listed in the table below. There are no current non-tariff barriers that
affect the cotton trade.

  ----------------------- ----------------------- -----------------------
  **HS Code**             **Products**            **Tariff Rates (applied
                                                  and bonded rates)**

  5202                    Cotton Fiber            0%

  5204, 5205, and 5207    Cotton Yarn             4%

  5208                    Cotton Fabric (gray)    7.5%

  5209                    Cotton Fabric           10%
                          (finished)              
  ----------------------- ----------------------- -----------------------

## 

## Tariffs for Man-made versus Cotton Products:

After joining the WTO, Taiwan reduced its tariffs for cotton yarn and
man‑made spun yarn to 4 percent. The tariff for man-made fiber fell to
1.5 percent while the tariffs for cotton gray cloth and man‑made gray
cloth remained at 7.5 percent. Clothing is charged 12.5 percent. All
temporary tariffs on yarns, gray cloth and man-made fibers were
withdrawn upon WTO accession.

## PRC Cotton Imports

Taiwan permits the import of PRC cotton and there are no duties or
outstanding phytosanitary issues, unlike for most PRC agricultural
products. However, since PRC cotton supplies are subject to significant
fluctuations, they are not expected to compete with U.S. cotton every
year. For example, in MY01/02 and MY02/03, PRC cotton imports increased
sharply, which resulted in China becoming Taiwan's second largest
supplier. However, in MY05/06, PRC is not even expected to be one of
Taiwan's top ten suppliers.

# 

# Marketing

Given Taiwan's strength in petrochemical production, cotton's most
formidable competitors are synthetic fibers, especially polyester.
Although Taiwan's consumption of cotton versus man-made fibers will
depend heavily on relative cotton and petroleum prices, opportunities
for U.S. cotton exports to Taiwan exist in several sectors:

-   [High end textiles and yarns]{.underline}, including higher count
    fabrics that could compete with high cost producers such as Italy.
    Other more expensive fabrics include those that are finished to have
    special crinkle, softening, draping, 3D or other characteristics.

-   [Technical/Performance fabrics]{.underline} where cotton can play a
    role in formulations. The relocation of garment manufacturers out of
    Taiwan has spurred interest in raising the production of textiles
    for home or industrial use. The China Textile Institute has set a
    goal of increasing non-garment textile production to 40 percent of
    the total by 2010. Some technical fabrics include products that are
    anti-bacterial, water resistant, multi-function, sun protective,
    anti-static, oil repellent and have electro-magnetic shielding where
    cotton is blended with metal or fibers into yarn. Taiwan continues
    to invest in these and other new technologies to manufacture
    textiles for sports wear and active wear. Starting 1 ½ years ago,
    Taiwan Ministry of Economic Affairs began to certify performance of
    these products under the "Taiwan Functional Textiles" label.

-   [Taiwan firms with investments in other markets such as the
    PRC]{.underline}, Vietnam, Indonesia and Thailand but have their
    head office functions in Taiwan. Industry sources estimate that
    Taiwan firms buy between 30 to 40 percent more cotton in Taiwan than
    is reflected in bilateral import statistics. The extra 300,000 to
    400,000 bales of cotton mainly go to Taiwan-owned sites in Southeast
    Asia and China.

-   [Textile formulations that can boost the weak brand
    equity]{.underline} of Taiwan textile and garment manufacturers.

-   [Cotton for use in textiles exported to the PRC and Southeast
    Asia]{.underline}.

When choosing between cotton suppliers, major Taiwan importers base
their buying decisions on reliability of supply, price, quality and the
availability of technical support. Importers are also sensitive to price
differences between suppliers and the presence of pests such honeydew,
which leaves sticky deposits or naps. Importers also pay particular
attention to damaged fibers caused by mechanical picking or overly
aggressive ginning. According to local spinners, Xinjiang (PRC) and
African cotton have inferior quality to U.S. products, despite their
long fiber length. The quality gap between U.S. and other cotton origins
means that U.S. cotton will likely remain the most important component
of Taiwan textile products.

The Cotton Council International (CCI) and Cotton Incorporated are very
active in the Taiwan market. Cotton Inc. provides technical support to
Taiwan textile mills, which encourages the use of U.S. cotton. CCI
promotes the use of U.S. cotton through the Cotton USA Mark, which it
supports through an extensive media campaign. As a result, recognition
of the Cotton USA mark is very high in Taiwan, which encourages Taiwan
textile producers to use U.S. cotton. As Taiwan textile manufacturers
move into more blended fabrics, there will be increasing interest in
promotion programs that emphasize their non "100 percent cotton"
products.

# Statistical Tables

## Table 1. Cotton Production, Supply and Demand, Metric Tons

+-----------+-------+---------+---------+---------+---------+---------+
| **PSD     |       |         |         |         |         |         |
| Table**   |       |         |         |         |         |         |
+-----------+-------+---------+---------+---------+---------+---------+
| **        | **Tai |         |         |         |         |         |
| Country** | wan** |         |         |         |         |         |
+-----------+-------+---------+---------+---------+---------+---------+
| **Co      | **Cot |         |         |         | (HE     |         |
| mmodity** | ton** |         |         |         | CTARES) |         |
|           |       |         |         |         | (MT)    |         |
+-----------+-------+---------+---------+---------+---------+---------+
|           | 2003  | ######  | 2004    | #       | 2005    | #       |
|           |       | Revised |         | ##### E |         | ##### F |
|           |       |         |         | stimate |         | orecast |
+-----------+-------+---------+---------+---------+---------+---------+
|           | USDA  | **Post  | USDA    | **Post  | USDA    | **Post  |
|           | Off   | E       | O       | E       | O       | E       |
|           | icial | stimate | fficial | stimate | fficial | stimate |
|           | \[    | \[      | \[Old\] | \[      | \[Old\] | \[      |
|           | Old\] | New\]** |         | New\]** |         | New\]** |
+-----------+-------+---------+---------+---------+---------+---------+
| **Market  |       | **08    |         | **08    |         | **08    |
| Year      |       | /2003** |         | /2004** |         | /2005** |
| Begin**   |       |         |         |         |         |         |
+-----------+-------+---------+---------+---------+---------+---------+
| Area      | 0     | **0**   | 0       | **0**   | 0       | **0**   |
| Planted   |       |         |         |         |         |         |
+-----------+-------+---------+---------+---------+---------+---------+
| Area      | 0     | **0**   | 0       | **0**   | 0       | **0**   |
| Harvested |       |         |         |         |         |         |
+-----------+-------+---------+---------+---------+---------+---------+
| Beginning | 1     | **      | 74245   | **      | 90574   | **      |
| Stocks    | 04944 | 96920** |         | 60072** |         | 60072** |
+-----------+-------+---------+---------+---------+---------+---------+
| P         | 0     | **0**   | 0       | **0**   | 0       | **0**   |
| roduction |       |         |         |         |         |         |
+-----------+-------+---------+---------+---------+---------+---------+
| Imports   | 2     | **2     | 255829  | **2     | 0       | **2     |
|           | 20122 | 20152** |         | 27000** |         | 27000** |
+-----------+-------+---------+---------+---------+---------+---------+
| MY Imp.   | 0     | **      | 0       | **1     | 0       | **1     |
| from U.S. |       | 90923** |         | 08000** |         | 08000** |
+-----------+-------+---------+---------+---------+---------+---------+
| TOTAL     | 3     | **3     | 330074  | **2     | 90574   | **2     |
| SUPPLY    | 25066 | 17072** |         | 87072** |         | 87072** |
+-----------+-------+---------+---------+---------+---------+---------+
| Exports   | 435   | **0**   | 0       | **0**   | 0       | **0**   |
+-----------+-------+---------+---------+---------+---------+---------+
| USE Dom.  | 2     | **2     | 239499  | **2     | 0       | **2     |
| Co        | 50386 | 57000** |         | 27000** |         | 27000** |
| nsumption |       |         |         |         |         |         |
+-----------+-------+---------+---------+---------+---------+---------+
| Loss Dom. | 0     | **0**   | 0       | **0**   | 0       | **0**   |
| Co        |       |         |         |         |         |         |
| nsumption |       |         |         |         |         |         |
+-----------+-------+---------+---------+---------+---------+---------+
| TOTAL     | 2     | **2     | 239499  | **2     | 0       | **2     |
| Dom.      | 50386 | 57000** |         | 27000** |         | 27000** |
| Co        |       |         |         |         |         |         |
| nsumption |       |         |         |         |         |         |
+-----------+-------+---------+---------+---------+---------+---------+
| Ending    | 74245 | **      | 90574   | **      | 0       | **      |
| Stocks    |       | 60072** |         | 60072** |         | 60072** |
+-----------+-------+---------+---------+---------+---------+---------+

*Source: Taiwan Customs*

## Table 2. Import Trade Matrix for Raw Cotton, Metric Tones 

  --------------------- --------------- -------------------- -------------
  **Import Trade                                             
  Matrix**                                                   

  **Country**           **Taiwan**                           

  **Commodity**         **Cotton**                           

  Time Period           08/2003         Units:               metric ton

  Imports for:          **2003**                             **2004**

  **U.S.**              **90923**       **U.S.**             **108000**

  Others                                Others               

  India                 18445           Brazil               26140

  Cote D\'Ivoire        16919           Pakistan             21500

  Togo                  15062           India                9800

  Burkina Faso          13036           Uzbekistan           8600

  Mali                  10046           Mali                 9400

  Senegal               7318            Zimbabwe             7050

  Brazil                6096            Burkina Faso         6200

  Uganda                4499            Togo                 5503

  Uzbekistan            4334            Tanzania             3095

  Zimbabwe              4314            Zambia               2750

  Total for Others      100069                               100038

  Others not Listed     29160                                18962

  **Grand Total**       **220152**                           **227000**
  --------------------- --------------- -------------------- -------------

*Source: Taiwan Customs*

## Table 3. Cotton Import Price CIF, Cents per Pound

  ------------------- --------------- ---------------- -------------------
  **Country**         **Taiwan**                       

  **Commodity**       **Cotton**                       

  **Prices in**       **cent**        per uom          Pound

                                                       

  Year                2003            **2004**         \% Change

  Jan                 52              **66**           27%

  Feb                 50              **68**           36%

  Mar                 50              **70**           40%

  Apr                 51              **68**           33%

  May                 52              **67**           29%

  Jun                 55              **65**           18%

  Jul                 55              **66**           20%

  Aug                 53              **60**           13%

  Sep                 55              **60**           9%

  Oct                 57              **57**           0%

  Nov                 60              **58**           -3%

  Dec                 69              **57**           -17%

                                                       

  Exchange Rate       34.47           Local            
                                      Currency/US \$   

  Date of Quote       2004 Ave.       MM/DD/YYYY       
  ------------------- --------------- ---------------- -------------------

## Table 4. Number of Operating Spindles in 2002 - 2004 by Yarn Type

+------------+------------+------------+------------+---------------+
| Type of    | Year       | Ring       | Open-end   | Jet Spinning  |
| Yarn       |            | Spindles   | Spindles   | Spindles      |
| Produced   |            |            |            |               |
+============+============+============+============+===============+
| Cotton     | 2002       | 572,477    | 29,225     |               |
| Yarn       |            |            |            |               |
+------------+------------+------------+------------+---------------+
|            | 2003       | 546,652    | 25,885     |               |
+------------+------------+------------+------------+---------------+
|            | 2004       | 541,256    | 28,261     |               |
+------------+------------+------------+------------+---------------+
| CVC        | 2002       | 374,321    | 9,569      |               |
| Blended    |            |            |            |               |
| Yarn       |            |            |            |               |
+------------+------------+------------+------------+---------------+
|            | 2003       | 389,476    | 9,116      | 360           |
+------------+------------+------------+------------+---------------+
|            | 2004       | 346,040    | 11,600     |               |
+------------+------------+------------+------------+---------------+
| T/C        | 2002       | 232,898    | 19,960     | 1,080         |
| Blended    |            |            |            |               |
+------------+------------+------------+------------+---------------+
|            | 2003       | 256,908    | 16,953     | 1,800         |
+------------+------------+------------+------------+---------------+
|            | 2004       | 254,600    | 15,996     | 600           |
+------------+------------+------------+------------+---------------+
| Spun       | 2002       | 317,942    | 5,224      | 360           |
| Polyester  |            |            |            |               |
| Yarn       |            |            |            |               |
+------------+------------+------------+------------+---------------+
|            | 2003       | 261,201    | 5,952      | 996           |
+------------+------------+------------+------------+---------------+
|            | 2004       | 222,819    | 5,868      | 1,440         |
+------------+------------+------------+------------+---------------+
| 100% Rayon | 2002       | 339,898    | 5,228      | 1,080         |
| & T/R, T/W |            |            |            |               |
| Blended    |            |            |            |               |
| Yarn       |            |            |            |               |
+------------+------------+------------+------------+---------------+
|            | 2003       | 348,709    | 8,248      | 360           |
+------------+------------+------------+------------+---------------+
|            | 2004       | 322,934    | 8,491      | 1,116         |
+------------+------------+------------+------------+---------------+
| Acrylic &  | 2002       | 93,082     | 1,533      |               |
| Acrylic/   |            |            |            |               |
|            |            |            |            |               |
| Blended    |            |            |            |               |
|            |            |            |            |               |
| Yarn       |            |            |            |               |
+------------+------------+------------+------------+---------------+
|            | 2003       | 44,356     | 714        |               |
+------------+------------+------------+------------+---------------+
|            | 2004       | 43,666     | 481        |               |
+------------+------------+------------+------------+---------------+
| Total      | 2002       | 1,930,709  | 78,659     | 2,880         |
| Operating  |            |            |            |               |
| Spindles   |            |            |            |               |
+------------+------------+------------+------------+---------------+
|            | 2003       | 1,847,302  | 66,868     | 3,156         |
+------------+------------+------------+------------+---------------+
|            | 2004       | 1,731,315  | 70,697     | 3,156         |
+------------+------------+------------+------------+---------------+
| *Source:   |            |            |            |               |
| Annual     |            |            |            |               |
| surveys    |            |            |            |               |
| conducted  |            |            |            |               |
| by the     |            |            |            |               |
| Taiwan     |            |            |            |               |
| Cotton     |            |            |            |               |
| Spinners'  |            |            |            |               |
| A          |            |            |            |               |
| ssociation |            |            |            |               |
| and Taiwan |            |            |            |               |
| Man-made   |            |            |            |               |
| Fiber      |            |            |            |               |
| Spinners   |            |            |            |               |
| A          |            |            |            |               |
| ssociation |            |            |            |               |
| (TCSA &    |            |            |            |               |
| TMFSA)*,   |            |            |            |               |
| htt        |            |            |            |               |
| p://www:tc |            |            |            |               |
| sa.org.tw/ |            |            |            |               |
+------------+------------+------------+------------+---------------+

## 

## Table 5. Taiwan Imports of Textile Products for 2003 & 2004

  ------------------------------------------------------------------------------------
  **Textile     **Volume                         **Value in               
  Imports**     in 1,000                         \$1,000,000**            
                mt**                                                      
  ------------- ---------- -------- ------------ --------------- -------- ------------
  Item          2003       2004     \% of Change 2003            2004     \% of Change

  Fiber         366        364      0            512             584      +14

  Yarn          166        144      -13          452             471      +4

  Fabric        95         107      +14          511             588      +15

  Apparel       82         86       +5           680             818      +20

  Accessories   37         41       +12          245             227      -7

  Total         747        745      0            2,402           2,688    +12
  ------------------------------------------------------------------------------------

*Source: The Taiwan Textile Federation (TTF)*

## Table 6. Taiwan Exports of Textile Products for 2003 & 2004

  ------------------------------------------------------------------------------------
  **Textile     **Volume                         **Value in               
  Exports**     in 1,000                         \$1,000,000**            
                mt**                                                      
  ------------- ---------- -------- ------------ --------------- -------- ------------
  Item          2003       2004     \% of Change 2003            2004     \% of Change

  Fiber         949        923      -3           1,030           1,216    +18

  Yarn          1,060      1,104    +4           1,876           1,229    +19

  Fabric        1,591      1,503    -6           6,938           7,204    +4

  Apparel       93         74       ‑20          1,467           1,302    -11

  Accessories   113        126      +12          573             588      +3

  Total         3,086      3,731    +20          11,884          12,539   +6
  ------------------------------------------------------------------------------------

*Source: The Taiwan Textile Federation (TTF)*

## Table 7. Cotton Yarn & Cotton Fabric Production, 1998-2003 

  ---------------------------------------------------------------------------
  **Cotton                              **Cotton                 
  Yarn and                              Fabric &                 
  Cotton                                Cotton                   
  Blended                               Blended                  
  Yarn in                               Fabric in                
  mt**                                  1,000                    
                                        square                   
                                        meter**                  
  ---------- ------------- ------------ ---------- ------------- ------------
  Year       Production    \% of Change Year       Production    \% of Change

  1998       363,947       -0.31%       1998       983,979       1.38%

  1999       353,590       -2.85%       1999       1,061,736     7.90%

  2000       337,566       -4.54%       2000       1,059,629     -0.20%

  2001       313,601       -7.10%       2001       831,566       -21.53%

  2002       306,360       -2.31%       2002       793,071       -4.52%

  2003       285,339       -6.84%       2003       704,750       -11.14%

  2004       279,885       -1.91%       2004       742,244       +5.32%
  ---------------------------------------------------------------------------

*Source: Industrial Production Statistics by the Department of
Statistics, Ministry of Economic affairs (MOEA)*

## Table 8. Cotton Yarn Imports for 2002 - 2004, Metric Tons

  --------------------- -------------------------- -------------------------- --------------------------
  Imports of Cotton                                                           
  Yarns in CY 2002 -                                                          
  CY2004                                                                      

                                                                              

  HS5204                CY2004                     CY2003                     CY2002

  Japan                 1                          3                          4

  France                2                          3                          4

  China                 0                          1                          0

  Hong Kong             0                          1                          5

  Others                2                          0                          4

  **Total**             **5**                      **8**                      **17**

                                                                              

  HS5205                CY2004                     CY2003                     CY2002

  India                 19,657                     19,664                     25,861

  Pakistan              9,922                      15,591                     25,452

  Indonesia             5,770                      3,836                      4,388

  Vietnam               2,318                      2,408                      3,175

  Peru                  466                        523                        492

  Thailand              361                        521                        390

  Korea                 279                        242                        649

  Others                483                        393                        877

  **Total**             **39,256**                 **43,177**                 **61,284**

                                                                              

  HS5207                CY2004                     CY2003                     CY2002

  Pakistan              52                         122                        157

  India                 143                        88                         38

  Hong Kong             136                        33                         39

  Korea                 13                         3                          166

  United States         0                          2                          0

  Italy                 0                          2                          5

  Others                34                         2                          76

  **Total**             **378**                    **252**                    **481**

                                                                              

  **[Total              **[39,639]{.underline}**   **[43,437]{.underline}**   **[61,784]{.underline}**
  Yarn]{.underline}**                                                         
  --------------------- -------------------------- -------------------------- --------------------------

## Table 9. Cotton Yarn Exports for 2002 -- 2004, Metric Tons

  --------------------- -------------------------- -------------------------- --------------------------
  **Exports of Cotton                                                         
  Yarns in CY 2002 -                                                          
  CY2004**                                                                    

                                                                              

  HS5204                CY2004                     CY2003                     CY2002

  Hong Kong             57                         113                        171

  Lesotho               70                         74                         35

  Vietnam               75                         63                         41

  Myanmar               3                          29                         65

  China                 80                         27                         7

  India                 1                          27                         2

  United States         24                         25                         21

  Others                421                        156                        152

  **Total**             **731**                    **514**                    **494**

                                                                              

  HS5205                CY2004                     CY2003                     CY2002

  Hong Kong             20,252                     19,021                     16,545

  China                 11,172                     8,321                      1,105

  Indonesia             2,338                      2,343                      1,290

  Philippines           1,436                      1,310                      2,168

  Japan                 501                        853                        448

  Singapore             301                        804                        29

  Viet Nam              554                        747                        569

  Egypt                 0                          358                        74

  Korea                 41                         268                        7

  Israel                1                          143                        290

  Others                543                        455                        1,255

  **Total**             **9,032**                  **34,623**                 **23,780**

                                                                              

  HS5207                CY2004                     CY2003                     CY2002

  Hong Kong             7,417                      11,404                     9,326

  China                 1,604                      2,627                      83

  Indonesia             221                        2,025                      436

  Philippines           715                        1,360                      4,011

  Thailand              20                         179                        15

  Malaysia              127                        176                        76

  Others                260                        171                        205

  **Total**             **10,364**                 **17,942**                 **14,152**

                                                                              

  **[Total              **[20,127]{.underline}**   **[53,079]{.underline}**   **[38,426]{.underline}**
  Yarn]{.underline}**                                                         
  --------------------- -------------------------- -------------------------- --------------------------

Source: Taiwan Customs

## Table 10. Imports of Cotton Fabrics for 2002 -- 2004, Metric Tons 

  ------------------------ -------------------------- ------------------------- --------------------------
  Imports of Cotton                                                             
  Fabrics in CY 2002 -                                                          
  CY2004                                                                        

                                                                                

  HS5208                   CY2004                     CY2003                    CY2002

  China                    6,976                      4,887                     1,321

  Indonesia                62                         505                       1,426

  India                    864                        480                       852

  Thailand                 357                        438                       336

  Japan                    323                        201                       215

  Pakistan                 486                        180                       4,409

  Hong Kong                101                        164                       186

  Singapore                132                        142                       122

  Korea                    92                         70                        154

  Malaysia                 12                         52                        23

  Others                   182                        132                       218

  **Total**                **9,587**                  **7,251**                 **9,262**

                                                                                

  HS5209                   CY2004                     CY2003                    CY2002

  China                    966                        808                       1,036

  Japan                    677                        425                       568

  Hong Kong                135                        402                       521

  Indonesia                234                        271                       435

  Korea                    220                        253                       450

  Pakistan                 189                        246                       513

  Nicaragua                0                          72                        0

  India                    32                         46                        18

  Italy                    44                         42                        23

  United States            33                         39                        38

  Others                   308                        99                        85

  **Total**                **2,838**                  **2,703**                 **3,687**

                                                                                

  **[Total                 **[12,425]{.underline}**   **[9,954]{.underline}**   **[12,949]{.underline}**
  Fabrics]{.underline}**                                                        
  ------------------------ -------------------------- ------------------------- --------------------------

Source: Taiwan Customs

## Table 11. Exports of Cotton Fabrics for 2002 -- 2004, Metric Tons 

  ------------------------ -------------------------- -------------------------- --------------------------
  Exports of Cotton                                                              
  Fabrics in CY 2002- 2004                                                       

                                                                                 

  HS5208                   CY2004                     CY2003                     CY2002

  Hong Kong                6,940                      5,339                      7,116

  Philippines              2,427                      2,782                      4,164

  Indonesia                1,741                      1,532                      1,770

  Sri Lanka                1,610                      1,214                      1,404

  Cambodia                 1,686                      1,122                      456

  China                    1,417                      1,001                      473

  Viet Nam                 655                        600                        907

  Myanmar                  955                        479                        153

  Malaysia                 625                        432                        403

  Thailand                 1,010                      399                        338

  Bangladesh               395                        377                        320

  Others                   2,801                      2,786                      2,636

  **Total**                **22,262**                 **18,063**                 **20,140**

                                                                                 

  HS5209                   CY2004                     CY2003                     CY2002

  United States            5,474                      6,082                      11,014

  Hong Kong                4,417                      4,417                      6,805

  Nicaragua                2,639                      2,699                      2,661

  Philippines              2,374                      2,342                      2,682

  South Africa             2,350                      2,277                      1,983

  Vietnam                  1,794                      2,242                      2,883

  Cambodia                 1,151                      1,568                      1,018

  Egypt                    884                        1,217                      350

  Jordan                   488                        1,125                      630

  Lesotho                  549                        844                        2,284

  Others                   15,563                     11,195                     13,851

  **Total**                **37,683**                 **36,008**                 **46,161**

                                                                                 

  **[Total                 **[59,945]{.underline}**   **[54,071]{.underline}**   **[66,301]{.underline}**
  Fabrics]{.underline}**                                                         
  ------------------------ -------------------------- -------------------------- --------------------------

Source: Taiwan Customs

##