Aftermath Of End Of Textile Quota Regime
...2006
Table of contents
1. Introduction 1
2. Historical Prespective 2
3 Systemic Implications Of The Atc Expiry 3
4 The Agreement To Phase Out Mfa Quotas 5
5 Slow Pace Of Implementation 7
6 Objectives Of Quantitative Restrictions 8
7 Concern World Over Before The End Of MFA 9
8 Changes In Textile Industry Just After Quota Abolition 12
9 India's Position Vis A Vis Other Countries Before Mfa Abolition 12
10 India's Performance Post Quota Abolition 17
11 Reasons For The Growth In Indian Export 19
12 The Way Ahead 20
1. Introduction
During the last two decades, textiles and clothing were the second most dynamic products in world trade after electronic and electrical goods. Developing countries contributed significantly to this growth, and this sector continues to play a vital role in their economies on account of inherent and evolving comparative advantage. It is one sector that offers good prospects for diversification away from traditional commodity exports, for entry into the area of manufactures, for absorption of large pools of labor, for crossing the great divide between the rural and urban sectors, and for generating foreign exchange. Also, the economic performance of the sector has important implications for socioeconomic issues such as equitable distribution of income, employment opportunities for women, development of small- and medium-scale enterprises, spillover to the informal sector, integration of remote regions into the global economy, promotion of rural development and poverty alleviation.
Moreover, in many developing countries, textiles production is linked to traditional and cultural heritage, which points to the importance of maintaining the economic sustainability of the sector as a source of comparative advantage and economic vitality. Considerations of benefits from trade cannot be divorced from the larger issue,...
View Full Essay
