POSITION PAPER

FOR A SMART AND SMOOTH BREXIT

EURATEX CONTRIBUTION

INTRODUCTION

The EU28 textile and clothing industry is one of the major indus-tries in the EU. With 1.7 million workers, it generated a total turn-over of 171 billion € in 2016. European textile and clothing compa-nies are globally leading, regarding technical textiles, sophisticated high-quality yarns and fibres, as well as high-end apparel goods.

The U.K. lies in 3rd place when ranking the EU27s most important trade partners in textile and clothing goods. On average the U.K. imported products almost 10 billion € worth from the EU 27, while its exports amounted to 6.2 billion € in the same period (2014 - 2016). The textile and clothing industries of the EU 27 and other European neighbouring countries on the one hand and the U.K. on the other hand are closely interlinked in terms of supply chains, foreign direct investments and exchange of workers.

It is thus in the common interest of the U.K. and the EU27 indus-tries to plead in favour of a smart and smooth BREXIT, enabling the current highly integrated supply chains to keep on working smoothly from fibres to end products.

KEY MESSAGES

•       An uncontrolled separation of the U.K. from the EU (“Hard BREXIT”) would have a very serious impact on the industries of both sides, i.e. given comparably high import tariffs that would apply in the textile and clothing sector.

•       The avoidance of legal uncertainty is of high priority for economic operators, requiring an early arrangement on the legal relationship between both contracting parties in the medium term.

•       A transitional arrangement should cover suspension of customs duties and all legal and regulatory areas with relevance for the textile and clothing industry.

•       Any transitional arrangement should directly lead to a comprehensive trade and investment agreement in the long run.

•       A future comprehensive EU27-U.K. trade and investment agreement should consider the already existing close economic relationship between the European textile and clothing industries.

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The European Textile and Apparel industry

A key European manufacturing sector made up of 177.700 companies, 99% are SMEs, producing primarily in Europe and integrated in the global value chains.

This industry is transforming since 2004 when it starts to move away from mass market com-modity goods to focus on high value, innovative and sustainable products and production which deliver garments to people as well as key materials for personal protection, sport, auto-motive, aerospace, construction, medical, and many other applications.

Europe is the world’s second largest exporter of textile products generating €171 billion turno-ver and employing 1.7 million people.