Research On The Impact Of EU CBAM To China’s Textile And Garment Industry Export Trade

Textile and garment industry is an important pillar industry in China,which plays an important role in supporting national economic growth,promoting the development of related industries and promoting employment.Textile and clothing products are an important part of China-EU trade.The EU is one of China’s important textile and garment export markets,which accounting for 18.3% of China’s textile and garment export share in 2020.China is also the largest textile and clothing import market of the EU,which has 42.6% of its market share in 2020.However,as a labor-intensive industry,the added value of China’s textile and garment industry has always been at the bottom of the smile curve,and some production and processing links still exist problems with high energy consumption,high emissions and even high pollution.With the increasing cost of labor,land and raw materials in recent years,and the strengthening of environmental constraints,China’s textile and garment industry is facing greater pressure for transformation and upgrading.In December 2019,the European Commission proposed a carbon border adjustment mechanism(CBAM)in the adopted European Green Agreement,which would impose a carbon border adjustment tax on goods exported by other countries’ specific sectors to the EU.CBAM will officially enter the transition period in 2023,and EU will formally levy carbon tariffs in 2027.The implementation of CBAM will have an important impact on China’s textile and garment exports to the EU.Therefore,the impact of the implementation of CBAM from the EU to China’s textile and garment exports will be assessed,and the countermeasures and policy suggestions should be explored,in order to reduce the negative impact of the EU CBAM on China’s textile and garment industry exports,promote the accelerated transformation and upgrading of China’s textile and garment industry and promote sustainable development.It’s also have great practical significance to facilitate the smooth realization of China’s goals of achieving peak carbon emissions by 2030 and carbon neutrality by 2060.Based on the theory of resource endowment,this paper studies the influence mechanism of CBAM on textile and garment trade,and analyzes the mutual restriction and promotion between CBAM and international trade.Through the Quantitative analysis,a comprehensive overview of China-EU textile and garment trade development and the status quo.With reference to the current EU carbon price,four scenarios of carbon border adjustment tax are formulated,and the GTAP-E model is used to simulate the impact on China’s textile and apparel trade when the EU starts to impose carbon tariffs in 2027.The study finds that,the implementation of CBAM will bring negative impacts on China’s overall economy,the import and export volume and output of textile and garment products will all decrease in different extents.The higher the intensity of carbon border adjustment tax,the greater the negative impact on China’s textile and garment industry,and the negative impact on the garment industry is more obvious.CBAM will have a great negative impact on China’s textile and garment trade.China should actively seek new development paths,carry out multi-dimensional innovation from the national,industrial and enterprise levels,and focus on both the economy and the environment to find our own low-carbon development outlet for the textile and garment industry.