Textile and clothing manufacture and trade have been crucial elements to international economic activity and growth for about two centuries. This labour intensive industry requires relatively low skilled workers and little fixed capital to establish production facilities. In consequence, the textile and clothing industry was one of the main sectors of economic growth at the beginning of the Industrial Revolution in developed countries and is of particular significance for developing countries at present.
The objective of this paper is to outline the case of quotas on the import of textiles and clothing and to contribute to the ongoing debate by assessing the issue from different perspectives. An overview about the textile and clothing sector in the 2nd chapter will clarify its structure, characteristics and recent patterns in international trade. On this background, chapter 3 will identify reasons for the implementation of the quotas and outline their historic emergence from the 1950s to the ATC, followed by a critical evaluation of their impacts. The 4th chapter will assess anticipated and actual post ATC-effects on both developed and developing countries. Special attention will be paid to the particular case of China. Furthermore, chapter 4 will describe the respective reactions of various interest groups, and outline the recently reinstalled safeguard measures of both the EU and the USA. Chapter 5 will come forward with some observations and suggestions as regards possibilities to cope with the intense competition for producers of textiles and clothing in both industrialised and developing countries. Chapter 6 will close this paper with a final conclusion.
Inhaltsverzeichnis (Table of Contents)
- INTRODUCTION
- THE TEXTILE AND CLOTHING INDUSTRY – OVERVIEW
- Structure
- Characteristics
- International Trade
- TEXTILE QUOTAS
- Implementation Reasons
- Form
- Early Agreements (1950s - 1973)
- The Multi Fibre Agreement (1974-1994)
- The Agreement on Textiles and Clothing (1995-2004)
- Effects of Quota Regulations and Further Discussion
- AFTER THE ATC PHASE-OUT
- Effects
- China's Advantage
- Effects on The European and US-American Markets
- Effects on Developing Countries
- Conflict of Interests amongst Importing Countries
- Retailers versus Producers
- Inner European Conflict
- New Safeguard Measures
- European Union
- United States of America
- COPING STRATEGIES
- American and European Producers
- Developing Countries
- CONCLUSION
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This term paper aims to analyze the case of quotas on textile and clothing imports and contribute to the ongoing debate by evaluating the issue from different perspectives.
- The structure, characteristics, and international trade patterns of the textile and clothing sector.
- The historical emergence of quotas from the 1950s to the Agreement on Textiles and Clothing (ATC), and their effects.
- The anticipated and actual post-ATC effects on developed and developing countries, particularly the case of China.
- The reactions of various interest groups to the post-ATC situation and the reintroduction of safeguard measures by the European Union and the United States.
- Strategies for producers of textiles and clothing in both industrialized and developing countries to cope with intense competition.
Zusammenfassung der Kapitel (Chapter Summaries)
Chapter 2 provides an overview of the textile and clothing industry, describing its structure as a demand-pull driven supply chain and highlighting its key characteristics. It also examines recent trends in international trade within the sector.
Chapter 3 delves into the implementation of textile quotas, outlining the historical evolution of agreements from the 1950s to the ATC. It explores the reasons behind these measures and critically analyzes their impacts.
Chapter 4 investigates the anticipated and actual effects of the ATC phase-out on both developed and developing countries, focusing on the case of China. It further examines the conflict of interests among importing countries and the re-introduction of safeguard measures by the European Union and the United States.
Schlüsselwörter (Keywords)
The key keywords and focus topics of this paper include textile and clothing quotas, international trade, developing countries, China, safeguard measures, competition, and the Agreement on Textiles and Clothing (ATC). The paper examines the historical evolution of trade restrictions, their impacts on different stakeholders, and the challenges faced by the industry in a post-quota environment. The paper's analysis draws on insights from empirical research and existing studies.
- Quote paper
- Monique Isenheim (Author), 2006, Quotas on Textiles and Clothing - A Review, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/51307
