The rapidly-developing conflict in the Middle East highlights the need for a sovereign fashion and textile industry in Australia, a leading body told Inside Retail.

An initial joint offensive from the US and Israel was launched against Iran on February 28. Iran responded with strikes on Bahrain, Kuwait, Qatar, the UAE, Jordan, and Saudi Arabia. The majority of these strikes are understood to have targeted US infrastructure in those countries.

This led to the grounding of air traffic in the region, including key hubs in Qatar, Dubai, and Saudi Arabia. The region is responsible for transporting 7.2 million tonnes of air freight each year, around 13.5 per cent of the world’s supply, according to research by Aviation: Benefits Beyond Borders.

Inside Retail asked key stakeholders in Australia whether these developments would have a downstream impact on domestic businesses. The Australian Fashion Council (AFC) said that 97 per cent of the country’s fashion and textile manufacturing currently occurs offshore.

The “rapidly unfolding” situation follows a period of “significant trade volatility,” the AFC added, citing the industry’s continued tariff-related challenges. While not wanting to speak definitively on the potential impacts of the current conflict, the AFC said it highlights “the broader structural vulnerability” of fashion and textiles in Australia, noting its “exposure to geopolitical disruption”.

“These issues underscore why rebuilding sovereign capability is so critical,” the AFC added.

Alongside the challenges facing businesses and the importing of their products, Australia’s $7.2 billion in yearly fashion exports could also be impacted by strained global freight networks.

Next Thursday, the AFC is launching its National Manufacturing Strategy for Australian Fashion and Textiles in Parliament. Formed in consultation with more than 300 industry participants, the strategy aims to “future-proof” the country’s manufacturing capability.