EFFECT OF TEXTILE QUOTA RESTRICTIONS ON U.S. COTTON TEXTILE IMPORTS BETWEEN 1964 AND 1973

Abstract

The objective of this study was to investigate the effect of U.S. cotton textile quotas on cotton textiles imported into the U.S. between 1964 and 1973. The findings showed that cotton imports requiring more processing stages had significantly greater 10‐year average prices than other groups. Changes in the dollar value of imported cotton textiles during the decade have mainly occurred because of an increase in the average prices rather than resulting from a redistribution of imports from low to high average price groups. The weakening correlation between changes in the dollar value and in the quantity of high unit value groups indicated that the control on quantity has not precluded increases in total dollar value of imports in higher processing stages, especially since 1970. Since fabrics with a relatively stable average price accounted for the major importation of cotton textiles during the 1964–1973 period, the overall control by quantity in this decade was still quite good, even though average prices of apparel were rising.