The Hindu Business Line : China's loss could be India's gain in high demand apparel items

INDIAN apparel exporters could well start working overtime on a list of 15-odd high demand garment items in the US and the EU that may not any longer be the prerogative of the Chinese to supply en masse and in which India has considerable expertise.

Following a European Commission move towards increasing vigil on Chinese textile shipments, items such as men's trousers, socks and stockings, pullovers and women's suits may become the first targets of the European Union's new measures to restrict Chinese imports.

The EU has decided to impose emergency quotas on Chinese textile suppliers from April, if increase in imports of these items breaches the limit of between 10 per cent and 100 per cent (depending on the item) set by the Commission, a trade expert said.

The US apparel industry has also filed petitions with the US Government on Wednesday seeking a curb on imports of Chinese items including low-priced shirts and sweaters. The US Government is reportedly planning to initiate investigations to curb imports of Chinese items including ladies and gent's trousers, underpants and shirts, where shipments have surged between 300 per cent and 1,500 per cent during the first three months of 2005.

Indian apparel majors already have a sizeable presence in the items that have been put under the scanner by the EU, including ladies suits, men's trousers and pullovers. "If restrictions are imposed on Chinese suppliers, Indian exports could well be among the biggest gainers," an industry player said. Already, the preliminary data coming in from the EU shows increases of more than 100 per cent in imports in many of the categories, much above the limits set by the European Commission, industry experts said.

"We already have a strong presence in these items. Once the EU clamps down on Chinese suppliers, it is expected that the US also follows suit, though in a limited way," an industry player said.

Both the EU and the US Government have been under tremendous pressure from their domestic clothing manufacturers to restrict surging China imports following the removing of textile quotas from January 1 this year. "The US alone accounts for over 24 per cent of global textile demand while the EU accounts for another 20 per cent. If both trading blocks impose restrictions on Chinese supplies, countries such as India and Pakistan need to gear up for cashing in on the opportunity," an industry player said. The EU and the US have initiated "safeguard action" against Chinese imports based on provisions included in China's Accession Agreement to the WTO in 2001. China had agreed to allowing WTO members to place import restrictions on its clothing when shipments threatened to attain "market disruptive" proportions.

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