Limiting China's Textile Exports: The Us's And Eu's Divergent Approaches


Code : ITF0020

Year :

Industry :General Business

Region : :USA Europe

Teaching Note: Not Available

Structured Assignment : Not Available

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Abstract: On January 1st 2005, the abolition of the textile quotas by the World Trade Organisation (WTO) opened the door for enormous opportunities for the developing countries to increase their textile exports in the lucrative European Union and US markets. By March 2005, due to massive export of textile and apparel items from China, textile industries in many developed countries started witnessing rapid job losses. Under pressure from their domestic textile trade associations, both the US and EU re-imposed quotas on Chinese textile imports. This resulted in a bitter trade dispute between the US, EU and China.

Pedagogical Objectives:

  • To discuss the effect of abolition of MFA on European and American textile markets.
  • To discuss the restrictive trade practices in a free global market.

    Multi-Fibre Agreement, World Trade Organisation?s (WTO) agreement on textile and clothing, Textile quota, Increasing US trade deficit with China, China?s textile exports to the US and EU, Growth of China?s textile industry, Paragraph 242 of WTO agreement with China, China?s textile industry clusters, Job losses in the US and EU textile sector, Sino-EU textile deal, China?s currency valuation, Importance of China to the US economy, Importance of China to the EU economy, Textile quota imposed by US on China

    Contents :
    » The Chinese Threat
    » Multi Fibre Agreement
    » Effect on US and its Response
    » Effect on EU and its Response

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