TNAG-0163-FCO40-199-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 170

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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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