The TPP plan “died” and the textile companies that moved to Vietnam “will cry”

The Obama administration also announced that it will not push for the passage of the TPP in Congress during its term. Since Trump himself opposes the TPP, it can basically be concluded that the TPP has died! In fact, “Printing and Dyeing Learning and Exchange” has made a detailed report on the impact of PPT on China’s fabric industry! Please click the link below!

Orders will fly southeast! Chinese fabric work clothes will be eaten by silkworms

On October 5 last year, 12 countries including the United States and Japan reached the TPP (Trans-Pacific Partnership) agreement in the United States. The conclusion of this agreement triggered a strong response in the country. Since China did not join the TPP, some people believed that the TPP would “kick China’s butt” and that the United States and Japan would join forces to block China, which would have a disastrous impact on China. In particular, Obama claimed that China cannot be allowed to formulate trade rules, which aggravated the dissatisfaction and concerns of many people.

If China stays outside the TPP, some industries will be transferred to TPP member countries. For example, in the traditional labor-intensive fabric industry, mainland fabric companies have transferred spinning and fabric production lines to Vietnam. The TPP may bring job losses and industrial losses to China’s fabric industry. Among the various provisions of the TPP, the most eye-catching provision is “zero tariffs” – in principle, the TPP requires the elimination of all goods when conducting trade between member states. import duties.

In this sense, the conclusion of the TPP agreement is not good news for the Chinese fabric industry. As a major country of origin of fabric products, China will indeed be greatly affected, and Chinese fabric workwear export companies will face more competition and difficulties.

For example, according to TPP regulations, all processes and raw materials after “starting from yarn” for fabric products must be carried out in TPP member countries in order to enjoy zero tariff treatment in 12 countries.

Zhang Yansheng, chief researcher of the China Center for International Economic Exchanges, told reporters that this may force some fabric companies to move their factories from China to TPP countries. Zhang Jianping, director of the International Cooperation Office of the Institute of Foreign Economics of the National Development and Reform Commission, said in an interview with the media that due to lower tariffs, Vietnamese fabrics and workwear products may become more competitive than Chinese products in the U.S. market.

Malaysian economists believe that Malaysia has reached a Trans-Pacific Partnership Agreement with 11 member countries, including the United States, Canada, Japan, Australia, Brunei, Chile, Mexico, New Zealand, Peru, Singapore and Vietnam. (TPP) will help improve foreign trade and open up the North American market. Exporters in many export-oriented industries, such as fabrics, palm oil, rubber and furniture, will benefit from it. However, domestic small and medium-sized enterprises, indigenous and state-owned enterprises will not benefit from it. May become a loser.

Respond calmly! Free trade between China and 5 TPP members

As a major country with a GDP of 10 trillion U.S. dollars and trade in goods, the Chinese market is extremely important to all countries and has become a partner that many countries cannot ignore. TPP signatory countries, including the United States and Japan, cannot give up economic and trade ties with China. Among the 12 TPP countries, 5 have reached FTA (free trade agreement) with China, and 7 have participated in the negotiation of the “Regional Comprehensive Economic Partnership” agreement including China.

In addition, China has accelerated the construction of free trade zones and gradually built a free trade network that is based on its surrounding areas and radiates the “Belt and Road”. In September this year, China successfully hosted the G20 Summit and became a leading One of the main forces in governance; the Asian Infrastructure Investment Bank initiated by China. The initial camp includes 57 countries, covering the five continents of Asia, Oceania, Europe, Latin America, and Africa, and is widely representative.

Therefore, regardless of the strategic intention behind the TPP, the trend of change will not be changed, and any attempt to contain China will not succeed. As for the future development trend of TPP, we must adhere to common progress and mutual benefit.Under the premise of win-win situation, we will continue to pay attention and respond calmly.

Vietnam: The founder of the TPP agreement will postpone the approval of the TPP

Since joining the WTO in 2007, Vietnam’s exports of fabrics, fabrics and garments have grown rapidly. Vietnam became the eighth largest exporting country last year, accounting for 1 percentage point of export share after China. The label Made in Vietnam is increasingly being applied to internationally renowned workwear brands such as ZARA, GAP, and NIKE. Vietnam has also become a country with potential in Asia to replace China’s fabric industry. From spinning manufacturing to garment manufacturing, especially with the advancement of the TPP agreement between Vietnam and the United States, Vietnam’s workwear exports to the United States, Japan and South Korea have expanded and grown, and are now second only to China in the U.S. market.

The TPP will create more than 6 million jobs for Vietnam’s fabric and garment industry by 2025. Vietnam’s textile exports to the TPP market will account for 70% of Vietnam’s total textile exports. Once the TPP takes effect, It is expected that the amount of textile exports to the TPP market will be increased by three times. It is estimated that Vietnam’s textile exports to the United States will reach US$55 billion in 2025. The average tariff on textiles exported to the United States will be reduced from the current 17.5% to zero tariffs. Vietnam’s fabric and garment industry will become a big winner after the TPP takes effect. .

According to a report by the British Reuters, Vietnam, which was originally considered to be one of the first countries to ratify the agreement, has postponed the approval process, saying that it will make decisions based on the results of the US election. The report quoted Vietnamese sources as saying that in the next session of the Vietnamese Congress, which will open on October 20, approval of the TPP is not on the agenda “because the proposal submitted by the government to Congress is incomplete.” This means that Vietnam will not be able to approve the agreement until several months after the US presidential election in November.

Vietnam’s “Youth Daily” quoted the country’s National Assembly Chairman Nguyen Thi Kim Ngan’s statement as saying that although Vietnam is a founding member of the TPP, it still needs to refer to and consider the ratifications of other countries, as well as the U.S. presidential election. What impact will the results have on the TPP? Relevant assessments will be made at that time, and decisions will be made after consultation.

Postscript: At present, it is difficult for fabric companies to receive foreign trade orders and there is great inventory pressure. At the same time, due to many factors such as rising labor costs, fluctuations in raw material prices, and increases in loan interest rates, China’s fabric industry will once again fall into a reshuffle. Brand pattern, the export situation is not optimistic. On the other hand, the price difference between China and international cotton prices continues to be too high, and the cotton costs of Chinese cotton textile companies are at a disadvantage in international competition. Not only cotton textile companies, but also fabric companies including downstream fabric workwear are facing huge competitive pressure. The cost of cotton is higher than that of the international market, which has long been a problem that has plagued the progress of China’s fabric industry. It has become more prominent in the past six months when other costs have increased rapidly, which has largely led to international competition in China’s fabric industry. Strength declines.

Because of this, Chinese fabric companies have to resolve their corporate difficulties through the layout of overseas production capacity, and they have “left” and invested in Vietnam. After Vietnam and the United States signed the Trans-Pacific Partnership Agreement (TPP), the main manufacturing processes of spinning, weaving, and printing and dyeing are carried out in member countries and can enjoy export tariff reductions. The tax-free treatment will further amplify the competitiveness of Vietnam’s fabric manufacturing industry in the context of low finishing cost advantages.

However, with the demise of the TPP, this advantage of Vietnam may “no longer exist”!

AAAVBBCNVM,N. KJO

Disclaimer:

Disclaimer: Some of the texts, pictures, audios, and videos of some articles published on this site are from the Internet and do not represent the views of this site. The copyrights belong to the original authors. If you find that the information reproduced on this website infringes upon your rights, please contact us and we will change or delete it as soon as possible.

AA