With the imposing of quota, EU decreased the import of China woolen sweater. In the meanwhile, EU retailers are centering on distributing low-priced woolen sweater depending on transit trade in Hong Kong. It is forecasted that EU wool sweater price will decline in 2007 instead of the continual rising for 2005/2006.
In 2006, cheap wool sweater from China, Madagascar, Bengal attracted EU consumers again., which resulted in the surge of EU's woolen sweater import
China has become the main supplier of cashmere in global market. In last ten years, China government decided to develop textile & garment industry in a new way instead of distributing material to the factory in Italy or Scotland. It is known that China wool sweater is mainly exported to Japan and US. The export to EU market only accounted for 20%, but is expected to rise due to the remove of quota.
The news from France media shows that 100% cashmere pullover is priced at 17.50Euro in Paris Interselection market, which is a forecast for the decreasing of wool sweater price in 2007.
It is known that Madagascar, Bengal sweater industry made profit from EU's restriction on China products because they enjoy the free tariff for exporting goods to EU. On the other hand, China textile enterprises is suffering from 12%tariff .
