Questions on International Trade in Textiles and Clothing

Abstract

Questions of importance for the negotiations on the extension of the Arrangement Regarding International Trade in Textiles focus on: (i) relative importance of trade in textiles and clothing; (ii) the participants in this trade; (iii) products that succeed for developing countries; (iv) market penetration in developed-country markets; (v) overall trends ; and (vi) effects of protectionist activities. Six conclusions are drawn: (1) Developed countries continue to generate the bulk of the world's exports of textiles; (2) Industries in developing countries are too small to threaten the developed countries' industries; (3) Developed countries collectively enjoy a large and sustained surplus in textile trade offset by a larger and growing deficit in clothing; (4) Only Hong Kong, South Korea, Taiwan, and India have large trade surpluses among developing countries; (5) Import penetration by developing countries is modest; and (6) Because of protection, developing countries' exports of textiles and clothing have no longer outstripped the growth of all trade in textiles and clothing since 1976.