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International Trade and Finance Case Study

Case Title:

Textile & Clothing Industry - ATC & Beyond: Implications for EU15

Publication Year : 2010

Authors: H Iyengar and T Venkatesh

Industry: Textile


Case Code: ITF0039IRC

Teaching Note: Not Available

Structured Assignment: Not Available

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The global textile and clothing industry was faced with the prospect of drastic change once the Agreement on Textiles and Clothing (ATC) came to an end on 31 December 2004. With the final phase of the ATC on 1 January 2005, all quotas on textile and clothing products were to be abolished. The European Union (EU), one of the largest exporters of textile and clothing products, was staring its biggest challenge in the face. The quota-free regime was set to transform the entire EU industry, with Asian countries like India and China being all set to capture the major market share. The case can be utilised to gain an insight into the Long Term Arrangement (LTA), Multi Fibre Arrangement (MFA) and Agreement on Textiles and Clothing (ATC) and to discuss the implications of quota elimination for the textile and clothing industry in the EU15.

Pedagogical Objectives:

Keywords :  Multi Fibre Arrangement (MFA), Agreement on Textiles and Clothing (ATC), Chinese exports, Textile and clothing exports, Textile and clothing industry, Uruguay Round Agreement, World Trade Organisation (WTO), Quota abolishment, Quota-free textiles, European Union (EU), Textile imports, Global textile trade, WTO safeguards

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