Textile quotas were removed from WTO members on the first day of 2005 , in conformity to the Agreement on Textiles and Clothing (ATC). However, the opposition against quota elimination grew throughout the US and the EU. Then, China reached agreements with the EU as well as the US in the months of June and November 2005, respectively. The China-US agreement, which took effect beginning in January 2006, governs the exports of of 21 groups that comprise 34 types of Chinese textiles and clothing to the US in the period 2006-2008. The China-EU accord, in effect since June 2005 includes the 10 main categories that comprise Chinese exports of clothing and textiles to the EU in 2005-2007.
On the other hand, both the mainland, as well as Hong Kong agreed in October 2005 to further open the market on the mainland to Hong Kong companies under the third stage of Mainland as well as Hong Kong Closer Economic Partnership Arrangement (CEPA III). In addition to other goods of Hong Kong origin, the mainland agreed to provide all goods from Hong Kong origin, including clothing, free treatment beginning on January 1, 2006. In accordance with the procedures outlined the products that do not have currently existing CEPA guidelines of origin will be treated with no tariffs upon the application of local manufacturers and on the CEPA rules of origin being agreed upon and fulfilled.
Hong Kong clothing companies are highly regarded for ODM or OEM production. They can provide high-quality clothing items in a very short time frames, since retailers and importers from abroad demand clothing manufacturers to strengthen the supply chain management in order to make sure that the items ordered arrive on the shelves in the correct time. In recent times, Hong Kong clothing companies particularly, the well-established ones have expressed an interest in promoting brands.
The total volume of Hong Kong’s exports of clothing increased by 9.9% during the initial 11 months of 2005. Although Hong Kong’s reexports of clothing increased by 20%, its domestic exports declined by 14 percent. In the first 11 months of the year 2005 Hong Kong’s clothing exports into Europe, the US and EU were up by 11 percentage points and 18% respectively. Although Hong Kong’s clothing exports to Japan decreased, exports for the Chinese mainland slowed by 11%.Industry HighlightsThe industry of clothing is one of the main manufacturing sectors in Hong Kong. Its output gross is among the most productive of all manufacturing industries which was HK$35.9 billion during 2003. It is the biggest production employer within Hong Kong, with 1,673 establishments employing 28,752 employees at the end of June. It also is the top producer of exports from the country, making about 40% of total exports during the first 11 months of 2005.
Hong Kong’s geographical boundary has not impeded the growth of the fashion-forward clothing industry. Most clothing companies have established offshore production facilities as a way to lower operating expenses. The move of production facilities offshore has led to decreasing the number of manufacturers of clothing located in Hong Kong.
Hong Kong is not only an important production hub, but also a major hub for global clothing supply. The companies that trade in garments within Hong Kong demon slayer cosplay are experienced in purchasing fabrics sales and marketing, logistical arrangements, quality control fashions, and the governing rules and laws. The professionalism they exhibit and the services they provide cannot be matched anywhere else. With 15,190 establishments that employ 95,889 employees They are the biggest group of companies involved in trade between import and export across Hong Kong.