EU''s imports of cotton fabrics from Pakistan are steadily rising while Indian and Indonesian suppliers continue losing shares on the market, according to our statistical report. Shipments from China are still expected surging in 2005.

EU''s imports of cotton fabrics from Pakistan substantially rose in volume terms since the start of the year and are already accounting for 62% of total shipments of 2002, according to data compiled from EU''s SIGL (imports placed under licence and cleared by EU''s customs).

Imports from India continued falling at the same time, accounting for only 45% of last year''s shipments on 1 August.

India''s exports to the European Union already declined 14.75% in 2002 while Pakistani shipments were up 0.88%.

Indian sales to Germany and the U.K. dramatically decreased this year, according to data provided by India''s Texprocil (The Cotton Textile Exports Promotion Council) while unit values rose as a result of higher cotton prices.

As a consequence, India''s share of total imports under license fell from 24.58% in 2001 down to 21.18% in 2002 and only 16.79% in the year to date.

At the opposite, imports from Pakistan accounted for only 15.48% of total licensed imports in 2000 before climbing to 18.35% this year (on 1 August 2003).

This is a clear result of the agreement concluded between the European Union and Pakistan by the end of 2001, allocating larger quotas to Pakistan in exchange for a reduction in its import tariffs.

China could be the winner at the end, however, with shipments expected surging after 2004. Although limited by a small quota, exports of cotton fabrics to the European Union are again increasing this year. China''s share of total imports under licence rose from 11.17% in 2001 to 14.86% in 2003, as a result.

China''s quota fill rate even reached 106.46% by the end of last year while already at 70.77% on 1 August 2003.

If taking into account licences which were already issued by China this year, shipments already reached 81.11% of the initial quota.

Clearly putting pressure on EU''s market, China is the only one in really meeting its limits by the end of each year.

Since Pakistan benefited from a large increase in its quota, its suppliers are no more threatened by a European embargo, at the opposite.

While imports from Indonesia are falling this year, probably due to the rise in the rupiah, shipments from Uzbekistan are steadily increasing.

Imports from Kazakhstan are surging at the same time, already accounting for more than twice the level reached in 2002. Kazakhstan''s share of licenced imports is still very low, however, although rapidly improving.