TNAG-0938-FCO40-1157-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1980 — Page 30

BRIEF 3 PART II

TEXTILES BRIEF

EXPORT PROSPECTS

1

Textile and clothing firms are consistently successful exporters, accounting for about 5% of Britain's overseas sales (£2,300m in 1979). Three main problems have recently faced exporters: very high tariff barriers in certain countries; the strength of sterling which has severely diminished the profitability of exports; and the increasing competitiveness in third markets of the US industry, which is currently producing and exporting a very large volume of relatively cheap textiles and clothing, especially those made of synthetic fibres.

2

The wool textile industry is probably the most successful exporting sector of the clothing and textile industries. Despite high tariff barriers erected by both developed and developing country markets, its past export record is excellent. In 1979, over £400m, two-fifths of production, was exported. However, figures for the first six months of this year show a slight down-turn on the same period of 1979 of just over 1% in woollens and 3% in worsteds. The attached table shows major customers. Export trade with Hong Kong, amounting to just over 3% of total fabric exports, is also down by 12% in woollen and 13% in worsted cloth.

3

The National Wool Textile Export Corporation (NWTEC), of which Mr Harrison is Vice-Chairman, are already very active in promoting exports to Hong Kong. They consider that the best approach is to convince the ultimate buyers of manufactured textile goods

to specify British cloth and materials when placing orders.

4

The Corporation intend to follow up the present visit by

arranging for a party of selected industrialists to come to London at the time of the Fabrex Show. They have also arranged a small exhibition at the Trade Development Council offices while the mission

is in Hong Kong.

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