Being one of the oldest sectors in the history of industrial development, the textile and clothing industry is often referred to as a traditional industry, as a sector belonging to the so-called 'old economy'. These notions divert attention from the fact that the European textile and clothing industry has undergone significant restructuring and modernisation efforts during the past ten to fifteen years, making redundant about one third of the total work force, increasing productivity throughout the production chain, and reorienting production towards innovative, high-quality products.

Chapter 1 describes the main features characterising the textile and clothing industry and its position in the EU's overall manufacturing industry.

Chapter 2 contains an overview of the industrial and regional structure of this rather complex sector. It also provides some information on recent developments in terms of production, productivity and employment.

Chapter 3 looks into the development of international trade flows.

Chapter 4 briefly puts the sector into the EU policy context, and highlights - by way of example - three areas of particular relevance to the performance of the sector: the increased use of information and communication technologies; the so-called pan-Euro-Mediterranean zone; and the field of industrial textiles as an example of a very promising sub-sector focusing with a strong focus on innovation and quality.

Chapter 5 attemps to shed some empirical light on the question as to what extent European industry is involved in so-called 'quality competition', i.e. competition where the decision to buy is mainly influenced by the quality of a product, and to a lesser extent by its price.

Enterprise Papers No 2, 2001