Editorial: The UK Clothing Industry and the Eurozone

Abstract

The EU is extremely important to the UK clothing industry in that (based on 1996 data) some 70 per cent of direct exports of clothing from the UK went to the EU. This compares with a figure of 57 per cent for all UK trade and 56 per cent for all UK‐manufactured exports (Tables 1 and 2). In relation to the 11 members of the Eurozone some 62 per cent for all UK clothing exports were destined (in 1996) for that region (Table 3). The Eurozone has a population of 290 millions with a total GDP of $6,000bn and a per capita GDP of $20,000 based on 1997 figures published by Eurostat (Table 4). Therefore the issue of whether or not the UK joins the Eurozone by signing up to economic and monetary union could be of particular interest to the clothing sector over and above the general issues that membership of EMU would pose for all businesses. If the Euro is weak in relation to the pound while the UK is outside the Eurozone then UK exports to that zone will become more expensive and, other things being equal, UK sales into the zone will fall. On these grounds and from the very narrow perspective of selling garments by direct export from the UK being inside the Eurozone does, therefore, appear to be a desirable option in that it cannot make a lot economic sense to be outside your major market.

Citation

Jones, R. (1999), "Editorial: The UK Clothing Industry and the Eurozone", Journal of Fashion Marketing and Management, Vol. 3 No. 3, pp. 205-206. https://doi.org/10.1108/eb022560