v                 Global export of textiles and ready-made garment (RMG) exceeds US $ 300 billion per year, well over one-third of which is accounted for by developing countries. Growth was particularly dramatic in China with exports increasing several times over previous years, for Mexico and Turkey, for Mauritius and Jamaica, as well as the better known cases of East and South-East Asia.

v                 India is using original cotton seeds and getting higher and higher cotton productivity and production year to year. In the last five years, India has almost doubled its cotton production to 31.0 million (170-kg) bales in 2007-2008 mostly by increasing its lint cotton yield from 302 kg per hectare in 2002-2003 seasons to 520 kg per hectare in 2007-2008.

v                 In Bangladesh domestic production of quality fabrics still limited, the domestic ready-made garment industry cannot take a full advantage of EU's duty-free access. By contrast, yarn production was significantly developed in the past years in Bangladesh, allowing knitwear industry in getting EU's duty-free access under the two-stage requirement.

v                 PSF prices stabilized in the past two weeks in China, reflecting higher crude oil and PTA prices. The rebound will be short-lived however, as demand is rapidly decreasing from downstream textile industry. Polyester filament prices continued declining, by contrast, as textile exports are depressed by a more rapidly rising cost.

v                 Sri Lankan apparel exports may be confronted in the year 2008 with surging competition from China, as European quotas are being lifted at the end of 2007. Exports to the United States already declined in the first eleven months of the year while sales to the EU slowed down.

v                 India's share in world cotton area under BT cotton seed is about 27% and is producing BT cotton almost 50% of its total cotton production. Beside, India has also started producing organic cotton which fetches handsome prices some 75% to 85% more than that of normal cotton.

v                 South Africa intends cutting its textile import tariffs while maintaining quotas on textile and clothing imports from China. Such a policy should help reducing the costs of domestic clothing producers while offering some strong opportunity to yarn and fabric exporters outside China to develop their sales to South Africa's clothing industry.

v                 Cotton prices are still rising on the international market, in line with a new increase of corn futures in the United States. Cotton production is seen further falling in the next year, resulting in higher prices. Demand from Pakistan is also supporting the market, with imports expected strongly rising this season.

v                 Asia's producers of polyester intermediates tried raising their prices but met strong resistance from polyester makers, finally resulting in lower prices on the spot markets. Demand from China's textile industry is currently falling, as usual in this period of the year. In absence of a new jump in raw material costs, polyester intermediate prices are now expected retreating, in line with last week's fall in crude oil prices.

v                 With quotas lifted at the end of the year 2007, EU's clothing imports from China may possibly surge at the start of 2008. Thanks to the monitoring system agreed with Beijing, Brussels will rapidly know the level in coming imports and possibly reimpose quotas for the remaining of the year.

v                 US quotas are far from being filled during the year 2007 on shipments from China. This leaves room for stronger imports in the next year, as quotas are being raised by 15% to 17% depending on categories. Imports from China clearly decelerated in the last four-week period, as usual in this part of the year.

v                 US apparel imports from Bangladesh stagnated in the third quarter, in sharp contrast with the double-digit growth reported in the past year. Political uncertainty and rising competition from China and Vietnam are behind the Bangladeshi setback. Domestic exporters are still protected by US quotas on cotton trousers from China.

v                 Polyester prices further declined in China, as last week anticipated. Lower raw material costs, slowing down demand for spun yarns and filament fabrics, an urgent need for cash, rising inventories, competition from cotton fibers: all these factors will continue depressing the polyester market in coming weeks.

v                 Polyester prices are mixed in December in India with staple fibers staying unchanged and filament prices rising. The slight reduction in import tariffs of polyester fibers and intermediates is putting some pressure on prices, however. PTA prices were lowered while MEG prices were once more increased.

v                 EU's clothing imports from Vietnam were less strong in 2007 although still significantly rising. A new fall in Vietnamese prices resulted in stronger market shares in volume terms with Vietnam remaining on the lower end of the European market.

v                 US apparel imports from Vietnam increased in the third quarter this year. Growth rates were very high in certain sensitive categories while unit prices heavily declined. Such a performance may trigger anti-dumping investigations in the United States