COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 11.10.1995 
COM(95)447 final 
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL, THE EUROPEAN PARLIAMENT, 
THE ECONOMIC AND SOCIAL COMMITTEE 
AND THE COMMITTEE OF THE REGIONS 
The Impact of International Developments on the Community's 
Textile and Clothing Sector 

CONTENTS 
I. INTRODUCTION 1 
FACTORS DETERMINING THE COMPETITIVENESS AND FURTHER 
DEVELOPMENT OF THE EU TEXTILE AND CLOTHING SECTOR 1 
1. Development of the EU textile and clothing sector since 1984 1 
2. Factors determining competitiveness 2 
THE RELEVANCE OF UR RESULTS 4 
1. Results of the Expert Study 4 
2. Assessment of the situation and the further perspectives 6 
3. Strategic choices for the enterprises 8 
IV. CURRENT POLICIES 9 
V. SOME FUTURE POLICY PRIORITIES 10 
A. External policy 11 
1. Exports to third countries 11 
2. Further WTO integration 12 
3. Fight against fraud and other unfair trade practices 12 
B. Internal competitiveness policies 13 
1. Industrial cooperation and information technologies 13 
2. Training "for export" 14 
3. Special product and regional aspects 14 
VI. CONCLUSIONS 15 
/ e-L 

INTRODUCTION 
Mid April 1994, the Final Act embodying the results of the Uruguay Round and the 
Agreement establishing the World Trade Organization (WTO) were signed in Marrakesh. 
Only one week later, the European Council of Industry Ministers1, after having examined 
the "Report on the Competitiveness of the European Textile and Clothing Industry", 
submitted to it by the Commission on 16 November 19932, decided on a comprehensive 
programme for the European textile and clothing industry. This programme was intended 
to actively encourage the adaptation of the industry to the new conditions of international 
competition in order to secure its future by improving its competitiveness. 
In this context, one important objective of the Council's programme was to make a 
concerted assessment of the impact of the Uruguay Round results on the industry. In the 
Commission's view this assessment should also take into account all the other internal 
and external factors which will influence the EU textile and clothing sector during the 
period of application of UR results and the possible implications for the enterprises' 
strategies and the Member States' and the EU's industrial policy. 
The present Communication prepares the necessary discussion of the Council taking into 
account the main results of an expert study which was launched by the Commission. The 
elaboration of the study was accompanied by a steering committee, composed of 
representatives from the European textile and clothing industry, trade and trade union as 
well as from the European Textile and Clothing Observatory (OETH) and the relevant 
Commission services. 
FACTORS DETERMINING THE COMPETITIVENESS AND FURTHER DEVELOPMENT OF 
THE ÊU TEXTILE AND CLOTHING SECTOR 
1 • Development of the EU textile and clothing sector since 1984 
During the last ten years the development of the European textile and clothing industry 
has been determined essentially by a relatively low annual growth in consumption 
(textiles +2.2%; clothing -0.3%) and a rather high annual growth of imports (textiles 
+5.4%; clothing +6.4%). Thanks to increasing exports in textiles (+3.2% p.a.) the 
textile production decreased only marginally (-0.6% p.a.), while the increase in 
clothing exports (+2% p.a.) was not enough to avoid a larger decline in clothing 
production (-2.2% p.a.). 
In consequence, the employment in the textile and clothing industry fell by about 
850 000 persons in the last 10 years, of which 600 0003 was during the last 5 years. 
While in textiles the rise in productivity, induced by the competitive developments, has 
been the main factor for the loss in employment, in clothing, besides a rise in 
productivity, weak consumption and the high imports played an important role. 
1 1750th Council meeting / Industry; Luxembourg, 22 April 1994 
2 COM(93)525 final of 18 November 1993 
3 excluding Eastern Germany 
it 
5 The development has been different in the various EU regions (Tables 1 a-e). While 
production in certain Member States had still increased in the last 10 years (in 
particular in Belgium and Portugal), employment has considerably dropped almost 
everywhere in the EU (excluding Portugal). 
However, the EU textile and clothing industry still represents a major industrial sector, 
with 2.3 million employees in more than 120 000 enterprises. In 1994 it had a turnover 
of 170 billion ECU and investments of 5.6 billion ECU. So this industry represents 8% 
of the employment and 5% of the value added of the whole EU manufacturing sector. 
An extensive analysis of the situation in the EU textile and clothing industry has been 
presented to the Council in the OETH Report of April 19954. 
2. Factors determining competitiveness 
The most important factors affecting the competitiveness and future developments of 
the EU textiles and clothing sector have already been analysed in the Commission's 
"Report on the Competitiveness of the European Textile and Clothing Industry" 
(Communication of 1993)5. 
Among them with a fundamental importance are labour costs (Table 2). Even if the 
existing immense differences in labour costs between the EU and the developing 
textile exporting countries may generally narrow down in the long term, for the near 
future the expected changes are limited and the differences in total costs tend even to 
be reinforced by further differences e.g. in energy and environmental costs. The 
problem of fundamental cost differences is particularly relevant in Community 
productions with a high share of labour cost (mainly in the clothing sector) or with 
relatively high energy and environmental costs (mainly in the textile sector). Cost 
differences can be compensated, at least partially, by a further modernisation or 
reorganization of the production processes, by the development of new products, 
more fashionable and higher quality products, trade marks or quality labels, improved 
logistics in the field of marketing or other means. 
Mainly the differences in labour costs but also the growing number of countries rapidly 
developing their industries and exports of textiles and clothing products have resulted 
in continuously increasing low priced imports into the EU (Table 3). 
Another important factor having an influence on the competitiveness of the strongly 
import and export-oriented EU textile and clothing sector are international monetary 
developments (Table 4). Over 50% of all EU-imports in this sector come from 
countries which price their exports in US dollars. Moreover, most of the raw materials 
are imported and depend on world market prices quoted in US dollars. So definitely, 
movements in the exchange rates of European currencies against the US dollar have 
an impact on the competitiveness of the EU textile and clothing industry6. 
4 OETH: The EU Textile and Clothing Industry 1993/94, Brussels, April 1995 
COM(93)525 final of 18 November 1993. 
The possible effects of EU-internal currency fluctuations are not the subject of this 
communication. The Commission is presently examining them as a follow-up of the European 
Council in Cannes. 
Also capital and labour productivities are key factors in international 
competitiveness. Developments in capital investment for the modernization of 
production plants as well as the utilization of production capacities have a major 
influence on production costs. This is also true for the labour productivity which 
depends mainly on the quality and flexibility of the human resources available. Labour 
productivity, measured by value added per employee, has risen steadily in the EU 
textile and clothing industry (1994 by 8% in textiles and by 6% in clothing) and has 
helped to strengthen the competitiveness of the sector. 
There are many other factors which will determine the further development and future 
competitiveness of the EU textile and clothing industry, of which the most important 
may be the following: 
- The technological developments have been quite different in the past regarding the 
textile and clothing production. While most of the textile processing uses highly 
developed technologies and is therefore capital-intensive, most of the clothing 
production still is labour intensive. Most of the experts do not see yet a 
technological breakthrough for the production of clothing. The EU industry normally 
draws a certain competitive advantage out of the fact that it is closely linked with a 
strong European textile machinery industry. However, this is a time limited 
advantage until relevant new technologies are also used by third countries' 
producers. New advantages are expected from the development and 
implementation of information technologies (e.g. quick response, just-in-time) if the 
industry will be successful in a quick application. Contrary to other sectors most of 
the research activities are carried out outside the enterprises. 
- The development of consumption is one of the very basic relevant factors. The EU 
industry has the competitive advantage to produce in a region of high consumption 
and in closest contact with developments in demand and fashion. But these 
advantages of the European industry are weakening. Other markets, in particular in 
Asia, are developing more rapidly and their growth rates are much higher. 
Moreover, if certain trends continue and EU consumers keep tending to reduce their 
relative priority for more expensive quality and fashion products mostly produced by 
the EU industry, this could create new problems. On the other hand, modern 
information technologies enable also producers for example in Asia to closely adapt 
their production to European market trends. Moreover, the transportation costs 
have dropped over the last years. 
- Environment and energy policies have developed quite differently in the various 
countries and geographical regions and have enlarged the cost differences in the 
production of textiles and clothing. This applies to the Community sector as a whole 
vis-à-vis third countries, but also to certain Member States vis-à-vis others. However, 
it should be expected that the efforts to coordinate and harmonize legislation within 
the EU and to converge policies in the framework of WTO will avoid a deepening of 
differences. Similar differences exist and consequences apply regarding the use of 
energy, in particular in the textile industry. 
- Existing distribution structures are another important factor in national, but also 
international competition. A further opening-up of markets will make it necessary to 
adapt the distribution systems in many countries to the globalisation of markets. In 
this context the present situation is not satisfactory for the EU industry. While the EU 
distribution systems, although different in the Member States, give easy access to 
the Community markets, the distribution of European products in third countries in 
most cases is faced with considerable difficulties. 
The existence of all these factors, which have an impact on the future 
development of the textile and clothing sector, suggests that the impact of the 
UR is certainly a significant factor, but probably not the most important factor. 
THE RELEVANCE OF UR RESULTS 
1. Results of the Expert Study 
The expert study7 launched by the Commission has concentrated its analysis on the 
special impact of UR results on the EU textile and clothing sector. However, it could 
not clearly separate the possible UR impact from the effects of other exogenous and 
endogenous factors. It, therefore, arrives at the general conclusion that the UR 
results will only have a rather limited impact on this sector and that other factors 
in their combination are much more important for its further development. 
Regarding the importance of the UR results on the EU's imports of all textile and 
clothing products (raw fibres excluded), it appears that about 30% of the EU-imports 
1993 (in value) are directly covered by the progressive liberalisation agreed by WTO 
members. Including China, which sooner or later will become WTO member, it would 
be 43%. Concentrating only on imports in restricted categories with a quota utilization 
above 80%, the study considers that the UR liberalisation is only relevant for 13%, 
including China 16.5%, of the EU's textile and clothing imports. 
On this basis, the progressive UR liberalisation over the next 10 years, in the form 
of integration of products into the WTO system which means elimination of 
quantitative restrictions on one hand, and in the form of an annual increase of further 
remaining quotas on the other hand, should in general not lead to changing the 
overall trend of the sector, unless the EU faces a slow growth of the economy, 
coupled with a fast integration of products under quota and a slow opening of 
third countries' markets. 
As to the other important factors resulting from the UR, in particular the improved 
access of EU exports to third countries' markets, but also the new provisions dealing 
with anti-dumping and anti-subsidy measures, trade related intellectual property rights 
and finally the new provisions of the Dispute Settlement Body, it proves more difficult 
or even impossible to quantify future perspectives. However, the study has tried to 
take into account in quantitative terms at least the important new access to third 
countries' markets. 
Mercer Management Consulting: "Impact of the Uruguay Round on the European Textile and 
Clothing Sector", Paris 1995. 
Among the other trade-related factors, not directly linked to the UR results, but 
similarly determinant for the further development of the EU's textile and clothing 
sector, the biggest impact on EU imports is expected from the Customs Union 
with Turkey. But also the full trade liberalisation with the Central and Eastern 
European countries and the closer trade links with the Republics of the former USSR 
will produce trade effects. The study estimates the importance of these three factors 
to cover about 4% of the EU textile and clothing imports under quota (utilized more 
than 80%), as compared to 16.5% of the UR impact, incl. China after accession to 
WTO. 
All other relevant factors have been taken into account by the study through the 
application of the macro-economic DRI European Industry Model which relies on the 
forecast of several variables such as exchange, inflation and interest rates, wages, 
investments and disposable incomes. 
On this basis, the study quantifies future developments in the framework of a micro-
economic approach, starting from certain selected representative textile and clothing 
products and production chains, and in parallel, by the mentioned macro-economic 
approach, in order to arrive at results which allow a coherent vision of the future 
developments of the sector. 
- Scenario 1 (high GDP growth, quick opening of markets and slow integration) 
Even in this most optimistic scenario the sector will be facing continuing problems 
with regard to employment. In textiles this will be due to further increases in 
productivity (production is expected to be stable thanks to much higher exports) 
and in clothing to the decline of production as a consequence mainly of much 
higher imports. Consumption will be lower in textiles, but will be backed by much 
higher exports, while in clothing consumption and exports will grow at similar rates, 
but much less than imports. 
- Scenario 2 (lower GDP growth, slower integration and access to third countries' 
markets) 
This probably more realistic scenario foresees bigger production and employment 
problems of the European textile and clothing sector. Imports, exports but also 
consumption will in every case be lower than in scenario 1, so that production will 
decrease in both subsectors. The impact on employment will be much higher in 
textiles, but also higher than in scenario 1 in clothing. 
- Scenario 3 (lower GDP growth, quick integration and access to third countries' 
markets) 
This scenario foresees less severe problems for the industry in terms of reduction in 
production and employment than scenario 2. Consumption, assumed to be almost 
the same as in scenario 2, will be strengthened by much higher exports in particular 
of textile products, while imports will only be marginally higher in clothing.. This 
would result in a lower decline in textile production and also a smaller loss in 
employment, particularly in textiles. The essential differences between scenarios 2 
and 3 appear to be in the timing of effects (earlier increase in imports and exports) 
and the obvious need to ensure that the EU's market will be opened earlier only in 
parallel with an effective additional access to third countries' markets. 
Basing on those results the study comes to the overall conclusions that: 
- the UR integration process although it concerns a significant share of EU textile and 
clothing imports only adds to the effects of the more important general 
developments and on the basis of its implementation procedures will not entail a 
major breakthrough; 
- the UR market access results, if fully implemented, will open the possibility for the 
EU industry to gain progressively from the opening of foreign markets; 
- economic policy decisions will largely determine the timing of the UR impact during 
the next 10 years; 
- if existing general trends continue in future, clothing production will drop further, 
while textile production may increase or decrease, depending on the case; 
- employment will continue to drop, with the most jobs lost in the textile industry; 
- the impact of the principal economic factors varies by product and region; 
- the European industry can establish production and export strategies to reinforce 
and facilitate their adjustment to market developments. 
2. Assessment of the situation and the further perspectives 
In general, the study confirms the Commission's view that the UR results regarding the 
progressive integration of the sector into the WTO system is only one of many 
determining factors. By itself it will not lead to changing the sector's overall trend, 
if an adequate phasing out of existing quantitative restrictions is ensured. On the 
other hand, the EU textile and clothing industry can benefit from improved 
access to third countries' markets and possibly also from strengthened 
competition between third countries. The assumption that rapid opening-up of third 
countries' markets should favour rapid integration of products and vice versa is fully in 
line with the EU's textile policy. 
The main trends in the overall development of the European textile and clothing 
industry in the future, and this has also been the result of the study, will probably be 
more or less the same as they were in the last 10 years. European production and 
employment in textiles and clothing will tend to decrease, while imports, but also 
exports will probably increase. EU consumption is expected to increase in the long 
term, but within narrow limits. Regarding the study's forecast of a decrease in textile 
consumption due to progressive délocalisation of the EU clothing industry, there may 
be doubts why textile consumption should decrease more than the EU clothing 
production, taking into account the rather promising perspectives in sub-sectors such 
as technical and home textiles. 
Comparing textiles and clothing, the overall perspectives seem to imply for EU 
textiles stable production, relatively lower import growth and relatively higher 
export growth, while for clothing a relatively higher increase of consumption, but 
also a lower loss of employment are forecasted. A very positive development has 
been forecasted for the EU's textile exports in case of rapid new access to third 
countries' markets. This seems not to to be true to the same extent for European 
clothing, due to its overall lower international competitiveness. However, new 
developments and changes in the consumers' taste and demand in the international 
markets cannot be excluded. 
The expected continuous loss of employment in this sector also in the future 
raises particular concern. The study's forecasts for the next 13 years range between 
365 000 and 520 000 employees for textiles and between 235 000 and 340 000 for 
clothing, which amount almost to the same absolute figures as in the past 10 years. 
This result of the study can be questioned because of the fact that after the sector's 
adjustment process during the last two or three decades its competitiveness and 
resistence should be improved as compared to the past. The forecasted tendency 
could also partly be opposed by new industrial dynamics regarding sourcing, 
marketing, human resources and products as well as by the expected new access to 
third countries' markets. Moreover, certain dominant supplier countries of the past are 
increasingly facing similar problems regarding their own competitiveness, which is 
going to be reduced. 
In view of the dimension of this problem, the Commission, in the framework of the 
Social Dialogue, has effected a study by IFM on "Employment development and 
qualification needs in the European Clothing industry" which has produced more 
detailed estimates of future employment losses by sub-sectors, Member States and 
socio-professional categories and also contains the evolution of past and future 
qualification needs in this industry. A symposium has been called to discuss the 
results in Brussels in October 1995. 
The general conclusions of other specialized studies, based on different assumptions, 
seem to confirm the above assessment of the overall future development of the sector. 
They share the expectation of a much stronger decline of clothing production as 
compared to textile production which, on the contrary, may even increase. They 
expect a continuing loss of employment in both subsectors, in some cases with a 
more pessimistic forecast. 
For example, while the Commission's study forecasts the production development 
until 2008 within the three scenarios from +16 to -12% for textiles and from -10 to -
23% for clothing, a study of the World Bank until 2005 foresees +3% (textiles) and -
60% (clothing) for the EU textile and clothing output. A multi-regional and multi-
sectoral study of GATT/WTO quantifies the impact of the UR for the EU output with -1% 
(textiles) and -23% (clothing). Another study, launched by the OETH in a different 
context, forecasts the EU production for 2005 to be reduced by -14% (textiles) and -
17% (clothing). A German study, covering only the German textiles and clothing 
sector, forecasts the output until 2010 to decrease by -1 to -12% (textiles) and by -46 to 
-49% (clothing) depending on certain scenarios. 
Regarding the expected development in employment, the study initiated by the 
Commission foresees a drop from -21 to -41% (textiles) and from -21 to -33% (clothing) 
until 2008. Comparable findings of the other studies referred to above are only 
available in the OETH study which expects until 2005 a decrease in EU employment 
by -30% (textiles) and -33% (clothing), while the German study expects a reduction in 
German employment of around 50% (textiles) and of around 60% (clothing). The IFM-
study launched in the framework of the Social Dialogue forecasts a loss in clothing 
employment of 34% from 1992 to 2002. 
In conclusion, textiles and clothing will be faced with a progressive development 
of new structures of production worldwide and also of new structures of world 
markets. If the EU's textile and clothing sector wants to maintain its present 
position comprehensive new strategies have to be developed. Those new 
strategies have to be applied on a broad level throughout the Community's textile and 
clothing sector in order to seriously adapt to the new situation and to effectively 
strengthen the competitiveness of European enterprises on world markets. 
3. Strategic choices for the enterprises 
As follows from the EU's market economy system, the main responsibility and the best 
abilities for the development of adequate and suitable economic strategies for 
particular situations of individual firms in the textile and clothing sector, as in other 
manufacturing sectors, lie with entrepreneurs. 
The competitiveness and the importance of the European textile and clothing industry 
for the European economy and worldwide, prove that this approach has successfully 
been applied in the past. At this juncture, this entrepreneurial dynamism has to be 
further developed and in many cases activated in order to master future challenges by 
new or modified strategies. 
Experience shows that, even in difficult economic situations, certain enterprises 
in textiles and clothing were always successful. Those good examples and their 
strategies should motivate others. The further developing technological progress, 
the possibilities to take advantage of synergies and cooperation in neighbouring 
countries in order to produce European type products and the strengthening of efforts 
to develop new ideas, products and markets should give a long term perspective also 
for the European textile and clothing industry. The extension of data networks, the 
diffusion of information and communication technologies, and the creation of 
international production networks should gain a new momentum. The further 
development of design and marketing centres, the intensification of the service 
component, the closer cooperation of enterprises within the textile and clothing 
industry and with the distribution and retail business will open new possibilities. The 
application of strategies which favour the personal development of employees in order 
to improve their abilities will also support the sector's competitiveness. 
In the past too often companies, in defending their competitiveness, in the first place 
improved their ability to offer at lower prices by modernizing their production. 
Following successful examples of many European manufacturers, the general 
orientation of enterprises should include more market-oriented approaches, in 
particular the discovery and development of new sources from which to buy, of 
new partners with whom to cooperate and of new methods and markets to sell 
into. 
In this context, the necessary new orientation and qualification of the companies' 
workforces, in particular in SMEs and the firm's managements, should systematically 
be set about. 
In order to systematically collect and update information on possible markets and 
market access problems in third countries, industry and trade federations should 
cooperate fully with governments and the Commission. 
IV. CURRENT POLICIES 
In the past, Member States and Commission, in the framework of their industrial policies, 
have assisted the European textile and clothing industry in their continuous efforts to 
adapt to the developing production and trade conditions. The most important measures 
have been taken in the field of commercial policy, in particular with regard to the exception 
of the textile and clothing sector from general GATT rules (Multifibre Arrangement until the 
end of 1994). In other areas, such as regional, research and development, education and 
training, export promotion, information and cooperation policies, public authorities have 
accompanied initiatives of the firms in this sector with particular attention to SMEs. 
The initiatives and programmes of the Commission have been the subject of Council 
discussions, resolutions and conclusions, as recently as in 1992 and 1994. The 
Commission's "Report on the Competitiveness of the European Textile and Clothing 
Industry"8 has not only analysed the situation of the industry and the factors determining 
its international competitiveness, but has also described industrial strategies and the 
measures taken by the Community in support of the industry. Member States and the 
Commission are in the process of implementing the Council's comprehensive programme 
of April 1994. Some progress has already been achieved9 
Existing measures in the framework of the EU's textile trade policy cover in the first 
place the application of the UR Agreement on Textiles and Clothing (ATC). Special efforts 
of the EU and its Member States have been done in the field of improvement of market 
access to third countries. The EU as a major trading partner in world textile trade will as a 
priority continue to strive for the progressive opening of all markets and for equitable and 
more favourable trade conditions through the application of the new ATC. In this context, 
the EU's export promotion programme (EXPROM) should gain high priority. But also 
safeguard, anti-dumping and anti-subsidy measures as well as the fight against fraud and 
counterfeiting are part of the EU's commercial or trade-related policy in favour of the 
industry, including the textile and clothing sector. In particular the last area deserves 
particular attention. Member States and the Commission have to improve their existing ad 
hoc measures (TAFI Programme) in order to fight the growing fraudulent circumvention of 
their trade policy measures. Council and Commission have recently underlined this 
necessity specifically regarding the textiles and clothing sector in their joint declaration of 
12 June 1995 and a new action plan is in the process of being implemented. 
The most important accompanying and supporting initiatives and programmes of 
Member States and the Commission in the other policy areas are concerning research 
and technological development, training, diversification and conversion, information and 
communication as well as cooperation. 
COM(93)525 final of 18 November 1993. 
Report on implementation of the Council resolutions and conclusions on industrial policy, 
Commission working paper, SEC(95)437 final of 22 March 1995. 
The Structural Funds provide an important support to the Member States' efforts to 
restructure and modernize their industries. The global budget of the Structural Funds is of 
the order of 155 billion ECU (1994 prices) for the period 1994 to 1999; a significant part 
has been foreseen for the above purpose, in particular for the most disadvantaged EU-
regions. 
- In research and technological development (RTD) the Fourth Framework Programme of 
the EU with a total budget of more than 13 billion ECU for the period 1994 to 1998 has 
concentrated on generic technologies for widespread use in all sectors of activity. 
Research on information and communications technologies and industrial technologies 
have been reinforced and will have spin-off effects for many sectors, including textiles 
and clothing. The use of new technologies by small firms has been encouraged by a 
new financial instrument to favour the dissemination of findings of Community research. 
- Regarding training, the European Social Fund with its objective 4 represents an 
important instrument for the adaptation, requalification or reconversion of employees in 
all economic sectors, including the textile and clothing sector. Objectives 1 and 2 of the 
Social Fund take into account the requalification of employees of sensitive sectors being 
subject to a restructuring process. Moreover, the Commission disposes of the 
Community initiatives ADAPT and EMPLOYMENT (1.4 billion ECU each) which by a 
transnational approach aim at creating new job possibilities. In view of further losses of 
employment in the textile and clothing sector the existing programmes in the different 
Member States and EU regions have to be adapted for all professional categories, in 
particular for the most affected, in order to develop the necessary competences and to 
organize the workforce according to future needs. 
- For diversification and conversion of the EU textile and clothing sector, the Structural 
Funds provide substantial support for the regions hardest hit by the necessary 
adaptation of the textile and clothing industry. The Commission's special RETEX 
programme of more than 600 million ECU for the period 1994 to 1999 will speed up 
diversification and modernization of production of viable firms in all sectors in regions 
heavily dependent on the textile and clothing industry. The programme is presently 
reconsidered in order to better serve the needs of the industry and the regions. The new 
generation of Community programmes 1994 to 1999 tries to respond to industrial 
change with measures to support modernisation of the manufacturing base at 
transnational levels. 
- The improvement of the flow of information, communication, cooperation and the 
dissemination of experience is another important area for support. The European Textile 
and Clothing Observatory (OETH) at a general level, and the BC-Net, the Business 
Cooperation Centre, Europartenariat, the Interprise programme and others for special 
purposes try to facilitate cooperation and partnerships also in the European textile and 
clothing sector. 
The Commission services will soon publish a comprehensive guide for the enterprises of 
the EU textile and clothing sector covering the details of the variety of Commission 
initiatives presently available also for this sector. 
10 
V. SOME FUTURE POLICY PRIORITIES 
The growing importance of exports and the necessary internationalisation of the 
European textile and clothing industry represent a new challenge to the European 
industry. It will be crucial that the industry will actively engage in the response to this 
challenge in terms of preparing, organizing and exporting successfully European 
products. Taking into account the structural situation of this sector, in particular its big 
number of SMEs, not only the enterprises will have to develop new cooperative and 
complementary strategies for the improvement of their future competitiveness, but also the 
Member States and the EU will have to reinforce and adapt their accompanying measures 
for the future. The implementation of the comprehensive programme adopted by the 
Industry Council in April 1994 and the already existing accompanying programmes in the 
EU and its Member States should continue with a high priority. In order to effectively 
contribute to the solution of the industry's problems Member States should 
reconsider and improve their policies regarding all factors which determine the 
competitiveness of the EU industry, including environment, energy and labour costs. 
In view of the described internationalization and in line with the industry's and enterprises' 
strategies, initiatives in the following areas should be more profoundly restructured and 
reinforced. 
A. External policy 
1. Exports to third countries 
Regarding this new key strategic instrument for the European textile and clothing 
sector, the Commission intends to discuss with Member States the 
possibilities to develop a new comprehensive initiative which goes beyond 
presently existing export promotion measures. Such an initiative has to provide 
a more comprehensive organisational framework which would at the same time 
guarantee an efficient opening up of third countries' markets and a maximum 
use by the sector of newly existing export possibilities: 
The following measures would facilitate industry efforts to develop and effectively 
apply new export strategies: 
- The reduction of tariffs according to the engagements taken in the UR and the 
elimination of non-tariff barriers have to be closely monitored. In this context, a 
maximum of information and transparency has to be made available. A 
database on non-tariff barriers in the textile sector has been established in the 
Commission, which has regularly to be furnished with relevant information with 
the help of exporting firms and Member States' authorities. 
- Non-fulfilments of obligations under the UR and new non-tariff barriers to trade 
have to be identified and taken to the competent fora. A flexible administration 
of quotas under the ATC should only be granted to countries which fully respect 
their obligations under WTO rules and which are prepared to consider 
accelerated access to their markets. 
- In cases of higher European export potential, systematic efforts have to be made 
in order to achieve additional market access in third countries, both in 
industrialized and newly industrialized countries, by acceleration of the 
implementation of UR results to be compensated, where applicable, by EU 
quota liberalisation. 
- The Member States' and Commission's export promotion measures have to be 
reconsidered, better coordinated and improved in budget terms. Export 
promotion credits in the draft 1996 EC budget, which have been reduced by the 
Council to a "pro memoria", should be reinstated and increased during the 
second reading of the 1996 budget. 
2. Further WTO integration 
In the light of future economic developments in the textile and clothing sector and 
of the willingness and success of the industry to engage in market oriented 
strategies and in exports to third countries' markets, the Community has to 
carefully examine how to proceed with the further integration of textile and clothing 
products into the WTO system. Generally, a more rapid integration of products 
under quantitative restrictions could be used as lever for the accelerated opening 
of third countries' markets. If accelerated market access could be obtained only 
from certain third countries it would also be worth examining the adequate 
liberalisation of selected quotas. 
In view of the prevailing situation of the EU industry, certain effects of the 
liberalisation and integration process also on production and employment 
could be accelerated or delayed by the selection of products and the timing 
of their integration or liberalisation. However, this can only be decided with a 
reasonable degree of certainty, on the basis of newest data which reflect the 
economic situation at the time of integration. Moreover, this has to be linked to the 
factual progress in the access to third countries' markets. These are the main 
reasons for which the Community has until now only taken a decision on the 
products to be integrated in the first phase of the integration process (1.1.1995) 
and has not yet decided on the second and third stages of integration of the textile 
sector into the WTO-system. The Commission's preparatory work regarding the 
selection of products to be integrated at the beginning of the second phase 
(1.1.1998) will start in the first half of 1996. 
3. Fight against fraud and other unfair trade practices 
In the textiles and clothing sector, the EU and its Member States are confronted 
with growing fraudulent circumvention of their trade policy measures. The EU 
industry, on the other hand, is facing the increasing problem that its industrial 
models and designs are copied in third countries. Therefore, great importance 
has to be attached to the fight against fraud in this sector. It becomes even more 
important to rely on a strict compliance with contractual and regulatory provisions 
as well as on fair trade practices since the EU textile and clothing sector faces 
major changes in its trading and competitive environment. 
The implementation of the Joint Declaration by the Council and the Commission 
on the fight against fraud of 12 June 1995 has urgently to be accelerated. The 
Commission has to improve its existing TAFI programme. Further considerations 
must be given to new technologies and special measures to fight fraud in textiles. 
Practical steps have to be taken to prevent the circumvention of existing quotas by 
fraudulent declarations concerning origin and to categorically apply existing 
provisions of the EU's bilateral textile agreements and administrative 
arrangements under the WTO Agreement on Textiles and Clothing. 
12 
Regarding the violation of intellectual property rights, counterfeiting which 
particularly damages the European high fashion textile and clothing products has 
to be more efficiently attacked. 
The Commission will apply in a vigorous manner the reinforced trade policy 
instruments to fight unfair trade practices, such as dumping and subsidizing, in 
accordance with WTO rules. 
B. Internal competitiveness policies 
1- Industrial cooperation and information technologies 
The Commission's Communication on an "Industrial Competitiveness Policy for 
the European Union"10 has already defined industrial cooperation as priority to 
enhance competitiveness and presence of EU companies in third countries. More 
cooperation between Community enterprises is also essential for the promotion of 
exports of the textile and clothing sector if its future in the EU is to be secured. 
Many traditionally independent enterprises so far were hesitant to share new ideas 
with their competitors, but in future it will be unavoidable if enterprises want to 
survive in the long run. The future necessity to have more relevant information on 
third countries' markets, to follow third countries' markets in their developments, 
to develop products accepted by customers on these markets and to know about 
the marketing and distribution channels in those countries goes beyond the 
possibilities of many industrial enterprises, in particular SMEs. Therefore, 
information networks based on new information technologies are expected to 
form the necessary basis for enterprises' initiatives. The Commission is currently 
already supporting the development of several private sector projects in this area. 
In this context, also the OETH, which has already entered into a period of 
reorientation of its services according to future needs of the sector, could play an 
important role. 
The implementation of the Information Society will change profoundly the 
ways of conceiving, producing and distributing textile and clothing products 
and will offer considerable new opportunities to the European firms. It is 
essential they take a leading role in this process without further delay. 
International cooperation and sub-contracting would help In order to provide the 
required competitivity and flexibility in production and would also be a way for 
Community enterprises to penetrate third markets. The example of outward 
processing (OPT) should underline the merits of such cooperation. The need to 
market products in an effective and competitive way, including an extended 
servicing of customers, could be easier fulfilled in cooperation with the 
distribution. 
10 COM(94) 319 final of 14 September 1994. 
13 
Certainly international industrial cooperation, in order to be efficient and 
successful, requires serious EU efforts and progress in the improvement of access 
to third countries' markets. The promotion of cooperation schemes taking into 
account the particular needs of the textile and clothing sector, including 
international cooperation programmes, in particular with neighbouring 
countries in middle and eastern Europe and in the mediterranean region, and 
the development of standard cooperation approaches for SMEs should, 
therefore, be another priority for the Member States' and the EU's industrial 
policy. Already now, financial assistance is made available by the Commission 
within various schemes, recently reinforced regarding international cooperation. 
The Commission is also engaged in the development of a programme which 
should increase the competitiveness of European sub-contractors in the textile 
and clothing industry and which will cover four components: information, 
communication between buyer and sub-contractor, promotion of sub-contractors 
and training. 
2. Training "for export" 
In view of expected further considerable losses of employment in textiles and 
clothing, the existing programmes for professional training and retraining in the 
different EU regions and regarding the most seriously affected professional 
categories will have to be adapted. New strategies have to be implemented in 
order to develop the necessary skills and the adequate organisation of the 
workforce needed in the future. This major task has to be taken up in the 
framework of the Member States' and the EU's general employment policy and 
the European Structural Fund. 
More specifically and in addition or supplementary to those programmes, 
more market and export oriented training programmes for the relevant 
management levels of enterprises in the textile and clothing sector have to 
be developed and promoted in order enable the enterprises to master the 
challenges of future increased competition on world markets. SMEs have to be 
systematically encouraged to participate. 
Consequently, the extension and intensification of training programmes for those 
management levels, including export workshops and international exchanges of 
views, seem to be another priority for a new policy orientation. 
3. Special product and regional aspects 
Although the information of the study regarding special effects of the liberalisation 
process under the UR is not very complete, it seems clear that the production in 
certain EU regions will suffer earlier or more from future international 
developments than others. 
For Portugal, a Community grant of financial assistance for the modernisation of 
the textile and clothing industry amounting to 400 mio ECU has been recently 
approved11. As to Greece, this region is not only confronted with UR results, but 
at the same time with certain special disadvantages. Following the Council 
Declaration of 6 March 1995, the Commission has been charged to study the 
O.J. n° L 86 of 20 April 1995, p. 10 
14 
particular situation of the Greek industry and to make proposals in 1995. In 
application of this mandate, the Commission is in the process of evaluating the 
problem and will define its proposals and communicate them to the Council as 
soon as it has concluded all the necessary aspects of its analvsis. The 
Commission knows that also some regions in other Member States could be 
similarly affected, in particular concerning the expected UR impact on European 
products of lower quality. This will have to be examined and assessed, as well as 
the general aspect of possible economic repercussion of any proposals on ihe EU 
textile and clothing industry as a whole. 
VI. CONCLUSIONS 
The main general conclusions of this Communication may be summarized as follows: 
- On the basis of the necessary efforts of its enterprises supported by an adequate 
accompanying industrial competitiveness policy, the European textile and clothing 
industry will be able to maintain a major economic importance for the European 
economy also in future. 
- The adjustment process of the industry, in order to meet the challenges of changing 
world markets and improved worldwide competition, will have to continue, even if this 
would imply some further losses in European production and employment. 
- There are many factors determining the industry's further development, such as the 
EU's economic growth, including the development of consumption, labour, environment 
and energy costs, monetary developments, new technologies, as well as new 
preferential arrangements of the EU with its neighbouring countries, including the 
Customs Union with Turkey, and the UR results. 
- The impact of the UR integration process, as far as it can be determined separately 
from the effects of other factors, will not lead to changing the overall trend of the 
sector. The integration will in any case take into account the achievement of improved 
access to markets in third countries, as agreed in the UR. This improved access will 
open new possibilities, which require a reorientation of existing strategies and policies 
by the industry, the Member States and the Commission. 
- The forecasted future loss in employment represents a key problem. Its economic 
importance and social impact'clearly extend beyond the focus of the European textile 
and clothing sector and deserve, therefore, special political attention in the 
framework of the EU's employment policy. 
- The UR results combined with the effects of other factors, will have a differentiated 
impact corresponding to products and EU regions which should be taken into 
account in the development of the EU and Member States policies. But it is 
important that industry and governments continue to take the necessary adjustment 
measures to improve the competitiveness of this sector. 
At the industry level companies have to reconsider their individual strategies and 
adapt them to the developing new structures of production and markets worldwide at 
the horizon of the years 2000. Discussions on practical ways and means should be 
intensified and include the SMEs. The possible benefits of cooperation, sub­
contracting and industrial alliances within the EU or with partners in third countries, in 
particular those neighbouring the EU should be systematically examined. A new policy 
orientation towards encouraging exports and the necessary qualification of the 
companies' workforces, in particular in SMEs, should be undertaken. 
At the level of Member States and the Commission existing accompanying industrial 
policy measures covering the textile and clothing sector have to be adapted and where 
necessary reinforced, in accordance with the Council's comprehensive programme of 
April 1994. In this context, Member States should reconsider and improve their policies 
regarding all factors determining the competitiveness of the EU industry, including 
environment, energy and labour costs Highest priority should be given, in 
cooperation with interested parties of the sector, to the development of a new 
framework which would guarantee an efficient opening up of third countries' 
markets. At the same time a maximum utilization by the textile and clothing sector of 
new export possibilities as well as of new developments provided by the information 
society should be ensured. Member States and Commission should develop special 
export training programmes and reconsider the efficiency of their individual export 
promotion programmes in the European perspective. Also existing programmes for 
cooperation between enterprises at national, European or international levels should 
specially take into account the export perspective. Regarding all these initiatives, the 
Commission can play a catalysing role. 
Member States in cooperation with the Commission have also to strengthen their fight 
against fraud, counterfeiting and other unfair trade practices, including dumping in this 
sector. Further considerations have to be given to new technologies and new practical 
approaches. 
At Community level additional or supplementary measures should only be 
considered with respect to those problems of the European textile and clothing 
industry which cannot be solved at national level or could better or more efficiently 
be solved at European level 
Table la 
EU : Developments in Textiles and Clothing 1984-1994 (Summary Table) 
B 
DK 
DE 
GR 
ES 
F 
IRL 
IT 
NL 
P 
UK Production1 
(Total changes %) 
Textiles3 
+ 2.6 
-24.3 
-20.5 
- 19.7 
- 1.3 
-21.3 
+ 25.1 
+ 16.7 
-3.0 
+ 10.5 
- 15.1 Clothing4 
+ 42.3 
-32.5 
-42.3 
-22.0 
-6.2 
-37.6 
-34.8 
-8.1 
+ 13.0 
+ 26.8 
-0.4 Employment2 
(Total changes %) 
Textiles-^ 
-26.1 
-27.9 
-34.2 
-48.4 
-37.3 
-44.4 
-23.5 
-16.2 
-21.1 
-6.1 
-20.3 Clothing4 
-38.4 
-32.1 
-48.7 
-8.9 
-7.9 
-30.0 
-32.6 
-31.7 
- 29.9 
+ 6.5 
-22.2 
EU-12 -5.4 -19.8 -27.2 -26.4 
Based on production in Mio ECU (constant 1990 prices) in firms of all sizes. 
Based on number of employees in firms of all sizes. 
Textiles ='(NACE43 + 455). 
Clothing = (NACE453 + 454). 
Source : OETH/DG 111 
s n 
Production 
textile^. ïncl. knitwear 
Units: ECU million (constant 1990 prices) in all sizes of firm 
Source: OETH, Eurostat, DEBA GEIE, Comitextil 
Note: Spain and Portugal became members in 1986 Average Annual Rate of Growth 
Estimates in bold Country 
Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Netherlands 
Portugal 
UK 
EU12* 1984 
5,112 
1,375 
20,166 
2,177 
7,838 
18,332 
574 
27,861 
2,171 
3,682 
12,425 
101,714 | 
I 1985 
I 
I 
5,153 
1,350 
20,764 
2,263 
8,199 
17,857 
545 
28,182 
2,226 
3,974 
12,927 
103,438 1986 
5,199 
1,327 
20,661 
2,416 
8,869 
17,334 
539 
29,430 
2,081 
4,351 
12,640 
104,848 1987 
5,159 
1,303 
20,249 
2,466 
9,204 
16,780 
556 
30,263 
2,059 
4,429 
13,202 
105,668 1988 
5,199 
1,247 
20,249 
2,394 
8,559 
16,589 
579 
30,679 
2,103 
4,301 
12,975 
104,874 1989 
5,384 
1,285 
20,228 
2,344 
8,981 
16,526 
605 
32,953 
2,164 
4,288 
12,437 
107,195 1990 
5,790 
1,173 
20,620 
2,256 
8,594 
15,845 
649 
32,024 
2,202 
4,552 
11,947 
105,652 1991 
5,384 
1,180 
20,744 
2,053 
8,181 
14,973 
648 
32,249 
2,182 
4,757 
10,800 
103,151 1992 
5,500 
1,139 
19,115 
1,877 
7,666 
14,720 
683 
31,672 
2,004 
4,470 
10,729 
99,574 .1993 
5,135 
1,021 
16,949 
1,758 
6,978 
13,658 
700 
30,295 
2,004 
3,919 
10,693 
93,110 1994 
5,213 
1,041 
16,042 
1,749 
7,739 
14,435 
718 
32,507 
2,106 
4,068 
10,549 
96,196 AAR*(%) 
84-94 
0.3 
-2.7 
-2.3 
-2.2 
-0.1 
-2.4 
2.3 
1.6 
-0.3 
1.0 
-1.6 
-0.6 
Clothing, excl. knitwear 
Units: ECU million (constant 1990 prices) in all sizes of firm 
Source: OETH, Eurostat, DEBA GEIE, Comitextil 
Note: Spain and Portugal became members in 1986 Average Annual Rate of Growth 
Estimates in bold Country 
Belgium 
Denmark 
Germany 
Greece 
Spain -
France 
Ireland 
Italy 
Netherlands 
Portugal 
UK 
EU12 1984 
1,459 
708 
14,371 I 
890! 
3,294 
11,904 i 
325^ 
18,870 ! 
486 I 
1,444 
5,829; 
59,581 ;;;';:|!|i| 
1,443 
744 
14,114 
882 
3,469 
12,014 
333 
19,213 
482 
• 2,066 
6,197 
60,958 SillHllS: 
1,503 
718 
14,138 
876 
3,583 
11,950 
332 
19,563 
468 
2,576 
6,197 
61,905 W&Mk 
1,398 
635 
13,489 
810 
3,506 
11,124 
341 
18,312 
418 
2,333 
6,240 
58,606 iisilll 
1,318 
541 
12,925 
856 
3,389 
10,096 
317 
18,625 
491 
2,242 
6,173 
56,973 ;||!ll|||ill| 
1,584 
505 
12,411 
790 
3,575 
9,518 
297 
18,607 
536 
2,120 
6,004 
55,947 lllliifll 
1,743 
503 
12,252 
786 
3,652 
9,178 
302 
18,386 
566 
2,340 
6,040 
55,748 illliffl! 
1,856 
511 
• 12,166 
818 
3,393 
8,674 
263 
18,386 
583 
2,361 
5,442 
54,453 lllilllll 
1,884 
537 
10,867 
791 
3,111 
8,013 
253 
19,250 
535 
2,310 
5,551 
53,102 llllllll 
2,052 
447 
9,679 
775 
2,728 
7,324 
225 
16,419 
549 
2,080 
5,551 
47,829 lllllii 
2,076 
478 
8,295 
694 
3,091 
7,425 
212 
17,338 
549 
1,831 
5,805 
47,794 llilpp lisliii 
3.6 
-3.9 
-5.3 
-2.5 
-0.6 
-4.6 
-4.2 
-0.8 
1.2 
2.4 
-0.0 
-2.2 
impioyment 
ïxtiles, incL. knitwear 
C o u n t ry 1984 1985! 1986 1987 1988 1989 mm ilQSI 1992 1993: 1994 AAR*(%) 
84-94 CHANGE 
84-94 
Belgium 
Denmark 
Germany 
Greece 
Spaiq 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
UK 
EU12 61,312| 
17,395 ! 
266,690; 
84,563 | 
236,487! 
253,218 
13,220 
434,967 
391 
23,062 
173,018 
253,288 
1,817,611 61,368 
18,120 
262,071 
89,447 
220,307 
244,493 
12,723 
424,425 
383 
23,092 
168,287 
255,944 
1,780,660 59,604 
17,999 
257,749 
88,027 
227,426 
230,685 
12,528 
421,266 
374 
24,375 
162,667 
260,370 
1,763.070 57,446 
17,817 
251,871 
85,539 
221,602 
220,848 
12,158 
420,213 
371 
23,458 
170,080 
255,058 
1,737,461 56,193 
17,153 
246,981 
84,059 
223,164 
205,785 
11,623 
421,266 
356 
22,744 
170,815 
260,370 
1,720,509 59,005 
16,318 
245,450 
81,365 
219,594 
198,581 
11,728 
420,807 
527 
22,946 
175,085 
251,258 
1,702,664 57,467 
15,619 
238,780 
73,870 
209,667 
183,711 
11,814 
411,858 
533 
22,947 
179,112 
231,125 
1,636,503 56,103 
14,793 
232,950 
64,538 
198,929 
180,435 
11,517 
407,929 
518 
22,543 
175,085 
214,500 
1,579,840 53,787 
14.519 
218,095 
55,331 
164,099 
170,632 
11,479 
389,388 
492 
21,500 
172,328 
202,989 
1,474,639 49,809 
13,790 
194,202 
48,064 
153,145 
153,785 
11,113 
359,649 
423 
20,000 
167,634 
201,726 
1,373,340 45,326 
12,549 
175,585 
43,594 
148,368 
140,905 
10,113 
364,324 
385 
18,200 
162,405 
201,957 
1,323,711 -2.98 
-3.21 
-4.09 
-6.41 
-4.55 
-5.69 
-2.64 
-1.76 
-0.15 
-2.34 
-0.63 
-2.24 
-3.12 -15,986 
-4,846 
-91,105 
-40,969 
-88,119 
-112,313 
-3,107 
-70,643 
-6 
-4 862 
-10,613 
-51,331 
-493,900 
Austria 
Finland 
Sweden 37,341; 36.877! 35,157 
n.a.j 21,8771 31,791 
n.a.j 12,089 
n.a.j n.a 32,340 
11,082 
14,395 32,180 
10,856 
14,354 30,833 
8,861 
11,625 28,641 
7,785 
10,478 25,116 
6,819 
9,200 24,100 
6,912 
9,200 -4.28 
.90(1) 
.56(2) -13,241 
-5,177(1) 
-5,195(2) 
Units: Number of employees in firms of all sizes 
Source: GETH. Ccmitextil, Eurostat 
Notes: 1) Spain and Portugal became members in 1986 
2) Data from .334 to 1987 estimated by OETH * Average Annua! Rate of Growth 
(1) For the period 1988-94 
(2) For the period 1989-94 \ 
CL 
Employment 
lothing, excL. knitwear 
Country 1S84 1985 x1986 1987: ;:l98a mm mm mm m& mes mm ""Wmm CHANGE 
WMWm 
Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
UK 
EU12 35,370 
13,041 
217,127 
30,744 
144,932 
198,577 
12,344 
326,139 
961 
10,244 
113.763 
216,831 33,605 
13,815 
212,148 
30,101 
136,158 
191,458 
12,704 
306,320 
588 
10,277 
116,416 
227,017 
1,320,073 | 1,290,607 33,444 
13,283 
206,061 
29,267 
138,460 
185,515 
12,619 
280,421 
580 
10,492 
117,769 
226,714 
1,254,623 32,461 
11,449 
195,841 
37,939 
145,335 
175,738 
11,908 
309,998 
568 
10,385 
127,920 
227,555 
1,287,097 30,332 
9,308 
.187,875 
38,976 
161,000 
161,065 
10,871 
303,979 
523 
10,350 
131,321 
233,629 
1,279,229 30,657 
9,009 
187,151 
39,377 
156,000 
153,295 
10,579 
306,651 
505 
9,900 
134,604 
218,916 
1,256,644 29,807 
9,897 
183,211 
39,547 
151,000 
150,696 
10,973 
308,690 
508 
9,250 
137,700 
203,300 
1,234,579 27,917 
9,576 
173,158 
37,350 
149,000 
148,650 
10,498 
296,348 
496 
8,500 
134,604 
180,800 
1,176,897 25,404 
10,191 
145,047 
34,953 
148,000 
146,782 
9,900 
272,586 
466 
8,050 
132,484 
169,718 23,137 
9,409 
124,925 
31,660 
142,000 
141,202 
8,848 
225,001 
400 
7,633 
128,875 
168,566 21,772 
8,854 
111,307 
28,015 
133,483 
139,035 
8,326 
222,751 
376 
7,183 
121,143 
168,757 
1,103,581 1,011,656 971,002 -4.74 
-3.80 
-6.46 
-0.93 
-0.82 
-3.50 
-3.86 
-3.74 
-8.93 
-3.49 
0.63 
-2.48 
-3.02 j -13,598 
-4,187 
-105,820 
-2,729 
-11,449 
-59,542 
-4,018 
-103,388 
-585 
-3,061 
7,380 
-48,074 
-349,071 
Unit?: Number of employees in firms of all sizes 
Source: OETH, DEBA GEIE, Eurostat 
Notes: 1) Spain and Portugal became members in 1986 
2) Data from 1984 to 1987 estimated by OETH * Average Annual Rate of Growth 
cr 
fO 
Table 2 
Hourly wage costs in the clothing industry 
in United States dollars 
(wages + social contributions) 
Country or zone 1990 1991 1993 
North America 
Canada 8.76 9.53 9.14 
United States 6.56 6.77 8.13 
Mexico 0.92 1.17 1.08 
European Community 
Germany 7.23 14.81 17.22 
Belgium 12.92 12.57 16.20 
Denmark 15.93 15.91 17.29 
Spain 7.08 7.11 6.41 
France 12.52 12.41 14.84 
Greece 4.33 4.26 5.85 
Ireland 7.50 7.50 7.44 
Italy 12.50 13.50 12.31 
Netherlands 14.71 14.95 15.4] 
Portugal 2.30 2.65 3.03 
United Kingdom 8.02 7.99 8.42 
Western Europe 
Austria 9.96 9.84 14.30 
Finland 14.16 13.98 9.25 
Norway 16.37 15.92 18.09 
Sweden 17.78 18.52 15.84 
Switzerland 14.19 14.19 18.08 
Eastern Europe 
Bulgaria 1.25 0.25 0.26 
Hungary 0.92 1.19 1.62 
Poland 0.50 0.42 0.44 
Romania 1.73 0.55 0.25 
Russian Federation 1.69 0.49 0.57 
Slovakia — — 1.14 
Former Czechoslovakia 2.79 1.59 1.29 
Middle East 
Israel 5.17 5.73 5.54 
Syrian Arab Republic 0.71 0.81 0.84 
Turkey 1.35 2.31 3.29 
Africa 
South Africa 1.07 1.12 1.12 
Egypt 0.34 0.32 0.43 
Ethiopia 0.57 0.57 
Kenya 0.47 0.44 0.23 
Mauritius — — 1.04 
Morocco 0.92 0.99 1.06 
Nigeria 0.20 0.20 0.27 
Tanzania, United 
Republic of — 0.26 0.18 
Tunisia 1.46 1.46 1.54 
Uganda 0.16 0.18 
Zambia — — 0.24 
Zimbabwe — 0.51 0.35 Country or zone 1990 
Argentina 
Brazil 
Colombia 
Costa Rica 
Dominican Republic 
Honduras. 
Jamaica 
Peru 
Uruguay 
Venezuela 
Asia — Pacific 
Australia 
Bangladesh 
China 
Korea, Republic of 
Hong Kong 
India 
Indonesia 
Japan 
Malaysia 
Pakistan 
Philippines 
Singapore 
Sri Lanka 
Taiwan, China 
Thailand 
Viet Nam 0.98 
1.23 
1.09 
0.67 
0.48 
0.91 
0.86 
1.41 
1.11 
8.79 
0.26 
2.46 
3.05 
0.33 
0.16 
6.34 
0.56 
0.24 
0.46 
2.43 
0.24 
3.41 
0.63 1991 
South America and Oie Caribbean 
1.07 1.81 
0.76 
1.18 
0.88 
0.64 
0.48 
0.83 
0.88 
1.59 
1.38 
9.58 
0.24 
2.75 
3.39 
0.25 
0.18 
7.44 
0.62 
0.24 
0.46 
2.72 
0.39 
3.74 
0.59 1991 
1.85 
0.73 
1.22 
1.00 
2.35 
1.48 
8.67 
0.16 
0.25 
2.71 
3.85 
0.27 
0.28 
10.64 
0.77 
0.27 
0.53 
3.06 
0.35 
4.61 
0.71 
0.26 
Source: Werner International Inc. (1994, New York). See also the Bobbin 
(Columbia. South Carolina), Sep. 1992. 
EU: Foreign Trade JnTexiite$>nd.GJOlhing-(199Ô-1994) • |' SEOT 
EU Imports2 
1990 1994 94/90 (%) EU Exports7 
1990 1994 94/90 (%) Balance 
1990 1994 Ratio £/l (%) 
1990 1994 
Textiles' 
Clothing 
Textiles and 
Clothing 000 tonnes 
ECU mn 
000 tonnes 
ECU mn 2,665 3,288 
11,774 13,606 
1,069 1,636 
18,754 27,682 23.4 
15.6 
53.1 
47.6 2,030 2,725 
13,327 16,897 
253 312 
9,967 11,754 34.2 
26.8 
23.3 
17.9 -634 
1,553 
-816 
-8,787 -563 
3,291 
-1,325 
•15,928 
000 tonnes 
ECUmn 3,733 4,924 
30,528 41,288 31.9 
35.2 2,283 3,037 
23,293 28,651 33.0 
23,0 -1,450 -1,888 
-7,234 -12,637 76 
113 
24 
53 
61 
76 i 
83 
124 
19 
42 
62 
69 
Source: Eurostat, OETH 1 Excluding raw materials 
2 Extra-EU only 
cr 
EXTRA-EU TRADE BALANCE IN MFA TEXTILE AND CLOTHING PRODUCTS 1991-1994 
AND % SHARES 1994 OF MEMBER STATES 
i 
! 
IMPORT | 
! 
| 1991 
! 1992 
i 1993 
; 1994 
| i % 1994 
| . ... ; 
I ] | 
: EXPORT j 
• 
1991 
I 1992 
1993 
: 1994 . 
! % 1 994 
i 
iBALANCEi 
! 1991 
i 1992 
i 1993 
j 1994 
i % 1994 Extra-CE 
CEE 12 
32.852.269 
33.587.453 
35.336.847 
37.878.002 
100 
CEE 12 
20.226.728 
21.002.713 
21.953.904 
24.416.668 
100 
CEE 12 
"-127625.541 
-12.584.740 
-13.382.943 
-13.461.334 
100 Allemagne 
13.960.445 
13.804.771 
15.114.008 
15.256.042 
40,28 
Allemagne 
6.979.220 
7.297.358 
7.597.681 
7.940.604 
32,52 
Allemagne 
-6.981.225 
-6.507.413 
-7.516.327 
-7.315.438 
54,34 ! I 
Total produits textile-habillement 
France 
4.452.400 
4.594.322 
4.874.504 
5.131.140 
13,55 
France 
2.529.351 
2.638.109 
2.650.009 
3.069.502 
12,57 
France 
-1.923.049 
-1.956.213 
-2.224.495 
-2.061.638 
15,32 Italie 
2.978.346 
3.210.084 
3.050.171 
3.705.027 
9,78 
Italie 
4.172.223 
4.380.536 
4.766.812 
5.848.882 
23,95 
Italie 
1.193.877 
1.170.452 
1.716.641 
2.143.855 
-15,93 Benelux 
3.700.204 
3.990.153 
4.327.037 
5.179.338 
13,67 
Benelux 
1.849.675 
1.866.031 
2.130.766 
2.396.560 
9,82 
Benelux 
-1.850.529 
-2.124.122 
-2.196.271 
-2.782.778 
20,67 UK 
5.079.271 
5.140.896 
5.638.524 
5.979.518 
15,79 
UK 
1.928.782 
1.853.090 
2.153.481 
2.324.162 
9,52 
UK 
-3.150.489 
-3.287.806 
-3.485.043 
-3.655.356 
27,15 AMF 
Irlande 
191.424 
164.415 
148.319 
156.475 
0,41 
Irlande 
88.633 
89.444 
106.214 
103.746 
0,42 
Irlande 
-102.791 
-74.971 
-42.105 
-52.729 
0,39 Danemark 
985.795 
944.949 
874.011 
949.817 
2,51 
Danemark 
657.588 
744.914 
683.827 
692.281 
2,84 
Danemark 
-328.207 
-200.035 
-190.184 
-257.536 
1,91 1000 ecu 
Grèce 
237.647 
228.027 
231.452 
289.110 
0,76 
Grèce 
305.215 
307.882 
282.236 
290.951 
1,19 
Grèce 
67.568 
79.855 
50.784 
1.841 
-0,01 Espagne Portugal 
1.029.642 237.095 
1.256.828 
835.299 
975.975 
2,58 
Espagne 
771.249 
816.747 
830.616 
942.294 
3,86 
Espagne 
-258.393^ 
-440.081 
-4.683 
-33.681J 
0,25 253.008 
243.522 
255.556 
0,67 
Portugal 
944.792 
908.602 
752.265 
807.686 
3,31 
Portugal 
707.697 
655.594 
508.743 
552.130 
-4,10 ÛJ 
cr 
cr 
Table 4a 
120 
100 
80 
dice 
1984 = 100) 
60 
40 
20 
0 Tableau 18a - Evolution des taux de change, corrigés de l'inflation 
(1984 - 1993) 
Portugal 
Espagne 
Belgique 
Allemagne 
Grèce 
France 
Pays Bas 
Italie 
Irlande 
Royaume Uni 
Suède 
Pologne 
Pakistan 
Indonésie 
44 Turquie 
1984 1985 1986 1987 1988 1989 
Source : FMI, Eurostat, Analyse Mercer Management Consulting 1990 1991 1992 1993 
Table 4b 
EU: Trade deficit in textiles and clothing 
and the ECU exchange rate against the US$ 
(1988-1994) 
ECU mn 
-6000 
-8000 h 
-10000 
-12000 
-14000 
-16000 
-18000 ECU per US$ 
1.00 
0.75 
0.70 
1988 1989 1990 1991 1992 1993 1994 
EU Deficit ECU per US$ 
KSI 
Source: Eurostat, DEBA; Including raw materials 
7C 

ISSN 0254-1475 
COM(95) 447 final 
DOCUMENTS 
EN 10 11 13 
Catalogue number : CB-CO-95-523-EN-C 
ISBN 92-77-94417-X 
Office for Official Publications of the European Communities 
L-2985 Luxembourg