UK textile industry shares tumble after global trade deal

TEXTILE INDUSTRY SHARES HAVE TURNED DOWN BELOW 1,000,000 ON THE RISE OF THE EUROPEAN LION THE EUROSTAT USED TO NOTE THE EUROLAND STOCK COMPANY SECTOR OF THE STOCK LIST IS STOCKS WITH A HIGH DEBT IN EUROSTATE.

EUROSTATS USED USED EUROSTATES EUROSTATING LION LONDON, UK –(BUSINESS WIRE)– (BUSINESS WRITTEN BY JONATHAN S. SCHULMAN, PH.

D.)

The textile industry is in a state of panic, after the European Union and the United States signed a trade deal which will see the EU absorb most of the European economy in return for the United Kingdom remaining in the European single market.

A report released today by the International Federation of the Red Cross (IFRC) said the European textile industry suffered a 9.3% fall in the first three months of 2017, compared to a year earlier.

The report, entitled ‘Trade and trade surpluses in the EU-US trade relationship: A global perspective’, said that the EU had reduced imports from the United State by $2.5 billion in the year to March 2017.

The IFRRC said that this had been partly offset by the United Kingdom’s increased imports of EU goods in the second half of 2017.

However, the IFRC added that there were still major challenges to the UK’s textile industry as the country’s economy is still growing and will need more than the $2 billion cut in trade to support its domestic economy.

The report found that imports from China in the three months to March 2018 increased by $3.1 billion, compared with a $1.4 billion increase in the same period last year.

In addition, the report said that India and the Middle East were both the biggest suppliers of the UK textile sector, with $3 billion of UK imports in 2017, up from $1 billion a year ago.

The report noted that these countries are “still in a period of trade adjustment, and therefore will need to import a lot more to support their growth in the near term”.

In its report, the IFRC noted that the Brexit vote had not helped the UK trade balance, with its trade surplus with the EU falling from $3,000 million in January to $2,400 million in March.

However, it said that its analysis showed that the UK could recover this trade deficit if it managed to remain in the single market for the long term.

In its outlook, the Institute for Fiscal Studies said that Britain’s current account deficit is $9.5bn in 2020, up by more than $1bn from $6.2bn in 2019.

This would be around $5 billion if the UK remained in the Single Market for at least five years, the group said.

“If the UK stays in the EEA it could have a trade surplus in goods and services that would be higher than the current balance, but this would require that the current account surplus is at least $10 billion, which would make the UK less competitive,” the report stated.

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