What Will Be the Impact of TPP on Domestic Textile Industry

On Oct 5^th, USA and other Ministers of Economy and Trade from 12 countries issued the joint statement that TPP negotiation was finished. After 5 years’ argument which was quite a long and tough time, they finally reached the agreement for roughly solving the suspended questions such as clothing origin rules, market admittance and trade execution rules.

However, what will be the impact of APP on domestic textile industry?

Some enterprises respond that export rate will be decreased; while the government considers that the industry transfer will be faced with severer situation. Among the regulations, the most attracted term is zero tariff. The zero tariff implementation means the purchasing rate of USA, Japan, Canada, etc from APP members will be increased, while China is not a APP member, thus the exporting rate will be definitely decreased. There is a rumor that the domestic clothing manufactures will be closed in the near future.  

Actually, this is not the end of China textile industry. Clothing factories closing doesn’t mean their bankruptcy but transferring to other countries. Why? The clothing origin rule made by TPP is the direct reason. Despite not issuing at present, it has already been the common sense. Then, for the sake of zero tariff, APP members are forced to import cotton and yarn from its members and China won’t be one of the exporters. USA is no doubt the big winner of cotton exporter. Where will Chinese textile manufactures go?