Cotton goods in the city (10)

I believe the answer is:

manchester

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'the city' is the definition.
(Manchester is an example)

I don't understand how the rest of the clue works.

(Other definitions for manchester that I've seen before include "City of the Halle Orch." , "See 22" , "Airport in north-west England" , "English city" , "Synthetic cream (anag)" .)

I've seen this clue in the Sydney Morning Herald.

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