Exports of 136 textiles from Taiwan to the mainland will enjoy low tariff concessions after the ECFA is formally implemented. Taiwan's industry says that tariff reduction for bulk exports of Taiwan's polyester fabrics will increase Taiwan's competitiveness, according to report from Taiwan "Central News Agency".

According to reports, the early harvest list of ECFA contains a total of 136 textile products, in which the tariff on polyester yarn has declined to 0 percent; the rate on cloth products has declined to 5 percent. With very low tariffs, the sustainable development of Taiwan's advanced new materials and functional textiles will have opportunity to enter mainland's domestic market.

Taiwan industry points out that polyester filament were mainly sold in domestic market in the past time, so in the short term, its direct benefits from the early harvest list is limited, the main focus is till on bulk exports of downstream cloth products, Among them, polyester cloth will be one of the benefited products, tariff reduction will enhance the competitiveness of these products and increase demand of polyester filament products, when downstream cloth factories continue to expand market.

According to industry analysis, international market estimates that cotton production will exceed demand in 2011 and 2012, but cotton supply and demand is still tight in the short term, cultivation cost rises, the average price of cotton per pound (1 pound = 0.45 kg) is estimated above 110 cents in 2011, it still needs some replacements.

Downstream brands are expected to increase polyester products when cotton price remains high. The market will enter midseason in the second quarter of 2011,twist textured yarn sector will expand false twist machines, so Taiwan's industry is expected to reproduce revenue momentum.

 

 

 

 

 

source:chh