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It is also clear that the cotton and wool spinning
and weaving sectors of the textile industry have
been affected by rationalisation and foreign
competition relatively harder than other branches of
the industry. As Swedish imports of these two raw
materials have fallen very considerably in recent
years, it is perhaps fair to assume that these
sectors were hit harder by foreign competition and
the growing use of synthetic fibres than by
rationalisation measures. The textile knitting
industry is much stronger today than it was 20 years
ago.
If imports from low-cost countries were to
remain at their present level, it is probable that
the local industry would be able to absorb the
impact and continue to thrive as a whole. If such
imports were spread more evenly among the other
European countries there is little doubt that it
would have a detrimental effect on Swedish textile
exports, and this situation would definitely be more
damaging to the textile industry than the present one.
There are definite signs that Yugoslavian competition
in ready-made outer clothing is hurting the Swedish
industry as muc.i as any other form of low-cost
competition;
it is certainly affecting what since
the carly 1960's has been the core of the industry,
i.e. the making-up trade. There are equally
reliable signs that both Hong Kong and Israel are
preparing an attack on the Swedish market in much
the same way as Yugoslavia is doing at present, and
there are those in the textile industry who think
cont.
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