China and Hong Kong, the world's largest exporters of clothing, saw a dramatic collapse in trade last year with exports increasing by less than 2 per cent.
The sudden downturn came as other clothing exporters ate into global market share, and contrasts with average growth in China of 25 per cent between 1990 and 1994 in clothing trade, and 9 per cent in Hong Kong. In 1994, the clothing export trade was worth US$45.13 billion.
According to the World Trade Organisation's (WTO) first report on trade developments last year, and the outlook for this year, trade in clothing worldwide expanded significantly less than the average for all manufactured goods.
Merchandise trade recorded a sharp 19 per cent growth to $4.87 trillion, while trade in commercial services increased 14 per cent to $1.23 trillion. Exports of 'other private services' such as insurance, banking and telecommunications, outperformed exports of tourism and transport services.
WTO economist Michael Finger, one of the authors of the report, said the clothing slowdown was widespread, with South Korea continuing to record negative export growth, and the United States, which is the world's largest importer of clothing, recording an increase of 7.5 per cent after a 26 per cent gain in 1994.
He pointed out that other countries were increasing market share in clothing trade, with strong competition from South America, and increased intra-Europe trade from eastern Europe into western Europe.
Furthermore, China's market share has been growing strongly in recent years, and in 1994 alone was worth about $23.73 billion.