What future?
TI 08 - December 2020

Mário Jorge Machado

ATP President
W

e are entering a new decade, and the next ten years will be filled with certainties and opportunities, which will only become a reality if we work them.

One of the certainties will be the continuous growth of the world population during this decade, from the current 7.8 to 8.5 billion, of which 85% will live in developing countries. Portugal’s residents will be fewer and older, with the population below 10 million and decreasing.

The other certainty has to do with the overtaking, in terms of GDP, of the eastern countries that joined the European Union in this century, relegating Portugal to the tail of the GDP per capita ranking.

Given these certainties, what we must do to make Portugal more attractive to invest is to promote economic growth.

We are talking about taxes that stimulates investment; education adequate to the needs of the economy (robust professional education); flexible labour legislation that values those who are competent; an efficient and swift judicial system; great incentives for innovation and for the collaboration between companies and technological centres and universities; and a financial system that supports projects, and not just consumer credit.

In the case of the textile and clothing industry, are the answers that led to growth equally simple? It would be much simpler if the previous conditions were met, but opportunities will continue to exist, despite the nightmare that most companies are experiencing.

As of next January, and throughout 2021, our future is at stake, as the European Commission will begin a consultation process on the new strategy for the textile and clothing sector.

The EURATEX, ATP and the other European associations, as well as companies, will play a crucial role in this consultation period, which is expected to last six months (during the Portuguese presidency). By the end of the year, a new strategy should be presented by the Commission, with strong implications in innovation incentives, digitization, training and skills, sustainability and circular economy, as well as for the EU’s position in terms of European trade agreements and levelling in the market access.

The requirements that we are obliged to fulfil when accessing other markets must also be imposed to those that want to access our market. The demands made on European sustainability producers should also have the same reciprocity in the manufacture of products outside the EU, to level the playing field. The industry’s opportunities will be linked to the creation of a more sustainable economy over the course of this decade.

The circular and sustainable economy is here to stay. The planet’s population will continue to grow and put enormous pressure on the climate issue. Whoever is able to produce sustainably at the cost of usual production will have a huge and continuously growing market.

The difficulties to be overcome, and the innovations to develop will be many. The country’s weak laws when it comes to support investing companies will make this task even difficult, but we have one advantage: we are used to not having it easy. A good 2021, and a great 2030 decade.

Share