European Commission : Trade : Textiles and footwear

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Industrial goods

Textiles and footwear

Red shoes - Illustration credit: Richard Holden

Textiles and clothing are among the most traded goods in the global economy and the EU dominates high quality markets

Textiles sector

EU textile exports in 2007: €33.7billion
EU textile imports in 2007: €79billion
EU share of global textile exports in 2006: 8%
Biggest markets for EU textile exports: Switzerland, Russia, USA and Turkey

Textiles and clothing are among the most traded goods in the global economy. After China, the EU is the world's second largest exporter of textile products. In 2007 the EU exported €33.7billion worth of textiles and continues to dominate global markets for upmarket and high quality textiles and clothing.

The focus of the European Commission's work in the textile and clothing sector is on removing barriers to European textile exports in growing markets abroad, and fighting counterfeiting, which is highly damaging for EU textile and clothing producers.

Further information on specific barriers facing the European textiles industry can be found in the European Commission's Market Access Database. To find out more about how the EU supports the European textiles industry, see the relevant pages on the website of Enterprise and Industry.

The end of the Agreement on Textiles and Clothing in 2005

For many decades, the textiles and clothing sectors were a notable exception to the progressive liberalisation of trade in manufactured goods. However, at the insistence of developing countries, in 1995 WTO members adopted the Agreement on Textiles and Clothing (ATC), which set out the terms under which trade in textiles would be liberalised over a period of ten years. At the end of 2004, textile trade was fully liberalised. The EU and China bilaterally negotiated a further extension of this deadline for a number of sensitive textiles products vulnerable to import surges until December 2007. There are no longer any quantitative restrictions in the EU on textile and clothing exports from China. As a result of this liberalisation, China has become the EU's largest provider of textiles and clothing, and continues to capture market share in Europe from other traditional providers in Asia.

Footwear sector

EU footwear exports in 2007: €5.8 billion
EU footwear imports in 2007: €14.7 billion
EU share of global footwear exports in 2007: 10%
Biggest markets for EU footwear exports: USA, Russia, Switzerland and Japan

The EU is a major producer and exporter of footwear, especially high quality, high value fashion shoes. In 2007 the EU was the second global exporter of footwear exporting €5.8 billion worth of shoes globally.

As with textiles and clothing, EU footwear exporters continue to face obstacles to exports in many markets, both in the form of high tariffs and non-tariff barriers. The footwear sector also suffers from the impact of counterfeiting and piracy.

An additional challenge for EU footwear producers is ensuring a steady and open supply of raw materials. The leather goods sector is widely affected by export taxes and export restrictions. Because the price of raw materials can be between 30 and 50% of the cost of production in this sector, barriers that raise the costs of raw materials can pose a serious problem. The EU addresses these problems through both its bilateral trade negotiations with raw material-exporting countries and its Market access partnership.

Further information on specific barriers facing the European footwear industry can be found in the European Commission's Market Access Database. To find out more about how the EU supports the European footwear industry, see the relevant pages on the website of Enterprise and Industry.