The End of Multi-Fiber Arrangement: Opportunities for China's Textile Industry
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Code : ITF0026
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Region : :Vatican |
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Introduction: The global textile and apparel industry has been governed by quotas, under the Multi-Fiber Arrangement3, for over three decades. The developed countries laid certain restrictions on the number of items that could be imported fromlowcost producers, such asChina and India, so as to protect their local textile industry. The end ofMulti-FiberArrangement on January 1st 2005, was supposed to herald the end of protectionism in the textile industry. China was expected to be one of the biggest winner with its abundant and cheap labour force. The country had made significant investment in its textile and apparel industry to make it competitive in the newmillennium. China’s textile and apparel exports experienced tremendous growth since its entry into theWTO in 2002 andmade a significant contribution to the country’s export revenue. But many competitors and importing countries, including the US textile industry, voiced concerns that China was set to dominate and destroy the textile industry through unfair practices including currencymanipulation and by subsidising its textile industry. They argued that “safeguards” be used to ensure that China does not leap ahead of its rivals. China itself has undertaken certain measures to ensure that its textile industry does not face a backlash from its trading partners. |
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