The lifting of barriers on Asian textile imports to the EU in force since January 2005 affected Czech textile sector causing sales fall during the last year. According to the survey published by the TextilZurnal magazine and the Association of Czech textile industries the sales during 2005 decreased in 22 out of 34 largest Czech textile companies and only 12 domestic producers showed an increase in their sales. The situation is better in the clothing industry where 11 out of 19 biggest firms managed to maintain or raise sales in 2005.
Textile imports from China to the CR rose by 28.5% and imports of clothing added 38% according to the Czech statistics. Owing to this situation, many Czech firms have reduced production or had to close down as they lost markets for their products. Chinese textile exports to the EU grew 130% only on the first half 2005. Finally, an agreement on introducing quotas on (selected) imports of Chinese textiles has been reached in June 2005. The quotas, valid until 2008, will reduce the growth of Chinese products to 8-12.5% a year. (TextilZurnal 12.05.06)