Agreement On Textiles And Clothing Research Articles

The Agreement on Textiles and Clothing: Potential effects on gendered employment in Pakistan

textabstractAbstract The government has realized that the textile and clothing sector is one sector that offers good prospects for diversification away from traditional commodity exports, for entry into the area of manufacturers, for absorption of large pools of manpower, for crossing the big divide between the rural and urban sectors, for poverty alleviation, and for gender empowerment.” (Ministry of Finance, 2003, emphasis added) In 2005, the Agreement on Textiles and Clothing (ATC) will give way to more liberalised global trade in textiles and clothing (T&C). The T&C industry is Pakistan’s major export engine. It also is a major employer of female workers. In the context of the social seclusion of women in Pakistan, the strong representation of women in the T&C industry makes the ATC implementation a gender equality issue. So far, the labour market implications of the change in the trade regime in general and its effects on gendered access to employment, in particular, have been neglected completely. The paper highlights the potential impact of the phase out of the textile quota regime on gendered employment in Pakistan.

Effects of global sourcing on textiles and apparel

– 1 January 2005 sees quota elimination in textile and apparel trade. This study traces textile and apparel trade, since 1994 and analyzes how trade agreements have influenced sourcing within the North American Free Trade Agreement (NAFTA) and the world. Statistical measurements of offshore sourcing of textile and apparel are analyzed with emphasis on developments in countries within NAFTA and the World Trade Organization (WTO)., – Prior to NAFTA, the United States major textile and apparel trade involved the “far shore” countries of China, Hong Kong, Taiwan, South Korea, and the “near shore” countries of Canada and Mexico. Charting statistical measurements from the databases of the Office of Textile and Apparel, US Department of Commerce for the past decade reveals dramatic changes in sourcing locations for US firms., – Trade agreements have influenced the production, manufacturing, and sourcing of textile and apparel products. Small‐ and large‐scale restructuring of the industries of the world are required in response to the changes in trade of textiles and apparel. As a result of the Multi‐Fiber Agreement (MFA) 1974, Agreement on Textiles and Clothing (ATC) 1994, NAFTA 1994, and the transitional program of the WTO of 1995 global sourcing had re‐directed the course of US textiles and apparel trade markets to low cost offshore locations at the expense of US jobs., – This study gives insight into concerns and problems facing the US and other developed countries as jobs in many areas are transferred to low wage countries.

State-level equity and the demise of the Agreement on Textiles and Clothing

As of January 1, 2005 all quantitative restrictions on textile and apparel commodities were removed in accordance with the Agreement on Textiles and Clothing (ATC). This paper examines the economic impacts of the liberalization at the U.S. state level. The methodology utilizes a regional model of the U.S. economy built up from individually consistent IMPLAN social accounts for each state. The model incorporates forward-looking dynamic responses and equilibrium unemployment. The results are useful in quantifying the geographic distribution of the benefits and costs of the ATC's expiration on the U.S. economy.

International Trade in Textiles and Clothing

The Multi-Fibre Arrangement (MFA) and other earlier agreements through quantitative restrictions governed the international trade in textiles and clothing for more than three decades now. One of the major milestones of the Uruguay Round was the Agreement on Textiles and Clothing (ATC) which provided for the dismantling of these restrictions. Under the ATC, the MFA restrictions were to be phased out over a “ten-year” period and were scheduled to end by 2005. The world trade in textiles and clothing has assumed alarming proportions in 2005. This paper examines the post-MFA challenges for the textiles and clothing industry in general and India in particular. As textiles and clothing industry has been an important source of economic growth in South Asia, this paper focuses on the strategies for India in facing the challenges due to full MFA phase-out from 1st January 2005.

State-level Equity and the Demise of the Agreement on Textiles and Clothing

According to the Agreement on Textiles and Clothing (ATC), all quantitative restrictions on textile and apparel commodities are to be removed on January 1, 2005. This paper examines the economic impacts of the 2005 liberalization at the U.S. state level. The methodology utilizes a regional model of the U.S. economy built up from individually consistent IMPLAN social accounts for each state. The model incorporates forward-looking dynamic responses and equilibrium unemployment. The results are useful in quantifying the geographic distribution of the benefits and costs of the ATC's expiration on the U.S. economy.

Impact of the Multi-Fibre Arrangement (MFA) Phase-Out on the Garment Workers of the World

“The Multi-Fibre arrangement (MFA) dealing with international trade in clothing and textiles, is being phased out to be in line with WTO rules. This phase out is being seen as favouring developing countries and only criticism focuses on the European countries and USA who are holding up the process. However, if we look at from the point of view of workers rather than countries, a different picture emerges. For workers East and West, North and South this means constant insecurity and deteriorating conditions of work. The Agreement on Textiles and Clothing (ATC) could thus become another mechanism through which companies are able to use the agenda of trade at the cost of workers.”

China's Accession to the WTO: Timing is Everything

Since China’s application in 1987 to resume its status in the Generalized Agreement on Trade and Tariffs (GATT)/World Trade Organization (WTO) there has been a great deal of debate over the timing of China’s accession. Although most of the issues relating to the timing of China’s trade liberalization have been resolved, the abolition of restrictions on Chinese textiles and clothing may still be subject to delay if the United States and Europe choose to implement the safeguards contained in the their bilateral accession agreements with China as well as in the original Agreement on Textiles and Clothing (ATC). In this paper, the effects of alternative target dates for the elimination of restrictions on textiles quotas are examined. Since this issue revolves fundamentally around the question of timing, it is most appropriately addressed in a dynamic model. In this study we use the Dynamic GTAP model. This is applied to a 19-region by 22-commodity aggregation of the GTAP database, supplemented with foreign income data. The paper finds that timing is indeed an important determinant of the profile of structural adjustment required in China and the rest of the world. In light of their interest in delayed implementation the ATC, it is interesting to note that our results suggest slower elimination of these quotas is detrimental to national welfare in North America and Europe.

MFA Phasing Out and Indian Textiles Industry

The phasing out of the Multi-Fibre Arrangement opens up many opportunities and challenges for the developing countries. The Agreement on Textiles and Clothing (ATC) is now an integral part of the WTO with a 10-year transitional agreement with a four-stage integration programme. The paper covers many areas of the ATC, which are of concern to India. Also, it attempts to highlight Indian textile industry's strengths, weaknesses, production technology, international competition and challenges to be faced in this context by India. Authors also highlight some of the problems, which need to be addressed in future negotiations of the ATC.

Textiles Beyond the MFA Phase‐Out

The Uruguay Round (UR) Agreement on Textiles and Clothing (ATC), which was meant to undo the MFA, is to be effected by the year 2005 despite inherent tendencies in the past to continually protect textile and clothing (T&C) industries? How did we get into this protectionist quagmire? What lay behind being able to sell protection in importing countries to T&C exporting countries? What pattern of T&C trade has hence evolved and what are the implications thereof? Based on this background the paper analyzes what currently influences where we now are four years after the UR ratification. Aside from tariffs and non-tariff barriers, major influences include regional trade agreements, changing locational demands, normal development trends and shifting factor intensities of production. It is then cautiously concluded that, despite backloading liberalization and factors which increase the pressure from major T&C exporting countries, the wrapping up of the ATC by Jan. 1st., 2005, will be basically abided by, even if it is accompanied by some sidestepping and perhaps postponements.

Textiles Beyond the MFA Phase-Out

The Uruguay Round (UR) Agreement on Textiles and Clothing (ATC), which was meant to undo the MFA, is to be effected by the year 2005 despite inherent tendencies in the past to continually protect textile and clothing (T&C) industries. How did we get into this protectionist quagmire? What lay behind being able to sell protection in importing countries to T&C exporting countries? What pattern of T&C trade has hence evolved and what are the implications thereof? Based on this background the paper analyzes what currently influences where we now are four years after the UR ratification. Aside from tariffs and non-tariff barriers, major influences include regional trade agreements, changing locational demands, normal development trends and shifting factor intensities of production. It is then cautiously concluded that, despite backloading liberalization and factors which increase the pressure from major T&C exporting countries, the wrapping up of the ATC by Jan. 1st., 2005, will be basically abided by, even if it is accompanied by some sidestepping and perhaps postponements.

Assessing Competitiveness of Indian Garment Export Firms: An Investigation

As per the provisions of the Agreement on Textiles and Clothing (ATC) currently in vogue, various quota restrictions imposed by the developed countries on the textiles and garment exports will be phased out by the year 2005. The phase-out process has already commenced and with the successive removal of quota restrictions, world trade in garments shall become very competitive. Based on a survey of the export firms and opinion of a few experts, the paper delves into a competitiveness analysis of Indian garment export firms. Though the Indian firms hold the perception that they are competitive enough to withstand the emerging competition, they are found to be lacking in respect of all the competitiveness dimensions identified through the use of factor analysis. The paper also provides suggestions for improving the export competitiveness in future.

Front-Loading protection: canada's approach to phasing out the multi-fiber arrangement

One of the most significant achievements of the GATT Uruguay Round was the Agreement on Textiles and Clothing (ATC). The agreement specifies the gradual phasing out of the nearly twenty-year-old Multi-Fiber Arrangement (MFA) in a manner that grants the importing (industrialized) countries considerable discretion. Although three liberalization steps have been dictated for the ten-year transition period leading up to a final liberalization step in 2005, there are no rules on when heavily protected products must be liberalized. Using Canada as a case in point, we show that political economy as well as rent-seeking considerations characterize the decisions regarding the products selected for the initial liberalization step. Our main finding is that through administrative discretion the 16% of import volume to be liberalized in phase one translated into a mere 11.3% of the value of textile and clothing imports. Thus the liberalization can be said to be only 70% effective.