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A Stitch in Time: Helping Vulnerable Countries Meet the Challenges of Apparel Quota Elimination

In the wake of the WTO's elimination of apparel export quotas, analysts predict that China and a handful of other efficient, low-cost producers will dominate the global market within a few years, shutting smaller, less industrialized countries out of an industry that created millions of jobs and often was the first step in the process of industrialization.

Published on September 27, 2005

On January 1, 2005, the United States and other members of the WTO eliminated all quotas limiting the amount of textiles and apparel developing countries can send abroad. Analysts predict that China and a handful of other efficient, low-cost producers will dominate the global market within a few years, shutting smaller, less industrialized countries out of an industry that created millions of jobs and often was the first step in the process of industrialization. 

In this new Policy Outlook, Carnegie associate Viji Rangaswami gives detailed prescriptions in four areas: 1) enhanced trade preferences for vulnerable countries; 2) targeted technical assistance to help affected countries improve competitiveness (for example, through infrastructure improvement and customs facilitation); 3) assistance to help countries differentiate their exports in the global marketplace; and 4) assistance to help affected countries manage inevitable dislocations.

Click on the link above for the full text of the Carnegie publication.

About the Author
Viji Rangaswami
is an associate in the Trade, Equity, and Development Project at the Carnegie Endowment.

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.