Trade Adjustments following the Removal of Textile and Clothing Quotas
With the end of the WTO Agreement on Textiles and Clothing and the removal of all textile and clothing quotas on 1 January 2005, the characteristics of global production patterns and trade flows will change substantially. Countries previously constrained by quotas will gain under the new situation. This paper analyses the restrictiveness of the quotas that were applied by the EU in 2004 and argues that large and instantaneous changes in terms of prices and import shares are a natural and expected adjustment that is proportionate in size to the quotas’ level of restriction. It also finds that import increases in volumes are much higher than in value, as quota abolition is accompanied by falling prices. In that light the paper discusses the rationale for safeguard measures and concludes that they are not justified. Indeed, sharp increases in imports are simply a natural adaptation to the new situation – to a large extent the shock of the quota removal will be absorbed by other countries. Nevertheless, the 10-year transition period should have been used more effectively by both producers and governments to prepare for the aftermath of the abolition of the quota system.
| Attachment | Size | Hits | Last download |
|---|---|---|---|
| 1221.pdf | 734.14 KB | 2749 | 3 days 21 hours ago |
With the end of the WTO Agreement on Textiles and Clothing and the removal of all textile and clothing quotas on 1 January 2005, the characteristics of global production patterns and trade flows will change substantially. Countries previously constrained by quotas will gain under the new situation. This paper analyses the restrictiveness of the quotas that were applied by the EU in 2004 and argues that large and instantaneous changes in terms of prices and import shares are a natural and expected adjustment that is proportionate in size to the quotas’ level of restriction. It also finds that import increases in volumes are much higher than in value, as quota abolition is accompanied by falling prices. In that light the paper discusses the rationale for safeguard measures and concludes that they are not justified. Indeed, sharp increases in imports are simply a natural adaptation to the new situation – to a large extent the shock of the quota removal will be absorbed by other countries. Nevertheless, the 10-year transition period should have been used more effectively by both producers and governments to prepare for the aftermath of the abolition of the quota system.
-en-1067
[list_price] => 0.00000 [cost] => 0.00000 [sell_price] => 12.00000 [weight] => 300 [weight_units] => g [length] => 0 [width] => 0 [height] => 0 [length_units] => cm [pkg_qty] => 0 [default_qty] => 1 [unique_hash] => d186d0b28e7cb454d5a9e3bdb4ee19af [ordering] => 0 [shippable] => 1 [path] => book/trade-adjustments-following-removal-textile-and-clothing-quotas [field_book_isbn] => Array ( [0] => Array ( [value] => [safe] => ) ) [field_book_number] => Array ( [0] => Array ( [value] => 222 [safe] => 222 [view] => 222 ) ) [field_book_short_title] => Array ( [0] => Array ( [value] => [safe] => [view] => ) ) [field_book_author_external] => Array ( [0] => Array ( [value] => Christian Buelens [safe] => Christian Buelens ) ) [field_book_old_path] => Array ( [0] => Array ( [value] => 1221 [safe] => 1221 ) ) [field_book_pages] => Array ( [0] => Array ( [value] => [view] => ) ) [field_book_publication_date] => Array ( [0] => Array ( [value] => 2005-05-01T00:00:00 [timezone] => Europe/Brussels [timezone_db] => Europe/Brussels [date_type] => date [view] => 01 May 2005 ) ) [field_book_author] => Array ( [0] => Array ( [nid] => [safe] => Array ( ) [view] => ) ) [field_image_cache] => Array ( [0] => ) [field_type] => Array ( [0] => Array ( [value] => BOOK [format] => [safe] =>BOOK
[view] => Printed book ) [1] => Array ( [value] => [format] => [safe] => [view] => ) [2] => Array ( [value] => [format] => [safe] => [view] => ) ) [print_display] => 1 [print_display_comment] => 0 [print_display_urllist] => 1 [signup] => 0 [tags] => Array ( ) [uc_order_product_id] => [0] => [taxonomy] => Array ( [taxonomy_term_12] => Array ( [title] => Trade Developments [href] => taxonomy/term/12 [attributes] => Array ( [rel] => tag [title] => ) ) [taxonomy_term_89] => Array ( [title] => CEPS Working Documents [href] => catalog/89 [attributes] => Array ( [rel] => tag [title] => Give an indication of work being conducted within CEPS research programmes and are aimed at stimulating reactions from other experts in the field. ) ) ) [files] => Array ( [923] => stdClass Object ( [fid] => 923 [uid] => 1 [filename] => 1221.pdf [filepath] => files/book/1221.pdf [filemime] => application/pdf [filesize] => 751755 [status] => 1 [timestamp] => 2009-09-16 10:34:45 [nid] => 1067 [vid] => 1067 [description] => 1221.pdf [list] => 1 [weight] => 0 ) ) [flatrate] => Array ( ) [shipping_type] => small_package [shipping_address] => stdClass Object ( [first_name] => [last_name] => [company] => CEPS [phone] => +32 2 2293951 [street1] => place du Congres 1 [street2] => [city] => Brussels [zone] => 94 [postal_code] => 1000 [country] => 56 ) [usps] => Array ( [vid] => 1067 [nid] => 1067 [container] => ) [weightquote] => Array ( ) [build_mode] => 0 [readmore] => 1 [content] =>With the end of the WTO Agreement on Textiles and Clothing and the removal of all textile and clothing quotas on 1 January 2005, the characteristics of global production patterns and trade flows will change substantially. Countries previously constrained by quotas will gain under the new situation. This paper analyses the restrictiveness of the quotas that were applied by the EU in 2004 and argues that large and instantaneous changes in terms of prices and import shares are a natural and expected adjustment that is proportionate in size to the quotas’ level of restriction. It also finds that import increases in volumes are much higher than in value, as quota abolition is accompanied by falling prices. In that light the paper discusses the rationale for safeguard measures and concludes that they are not justified. Indeed, sharp increases in imports are simply a natural adaptation to the new situation – to a large extent the shock of the quota removal will be absorbed by other countries. Nevertheless, the 10-year transition period should have been used more effectively by both producers and governments to prepare for the aftermath of the abolition of the quota system.
| Attachment | Size | Hits | Last download |
|---|---|---|---|
| 1221.pdf | 734.14 KB | 2749 | 3 days 21 hours ago |
With the end of the WTO Agreement on Textiles and Clothing and the removal of all textile and clothing quotas on 1 January 2005, the characteristics of global production patterns and trade flows will change substantially. Countries previously constrained by quotas will gain under the new situation. This paper analyses the restrictiveness of the quotas that were applied by the EU in 2004 and argues that large and instantaneous changes in terms of prices and import shares are a natural and expected adjustment that is proportionate in size to the quotas’ level of restriction. It also finds that import increases in volumes are much higher than in value, as quota abolition is accompanied by falling prices. In that light the paper discusses the rationale for safeguard measures and concludes that they are not justified. Indeed, sharp increases in imports are simply a natural adaptation to the new situation – to a large extent the shock of the quota removal will be absorbed by other countries. Nevertheless, the 10-year transition period should have been used more effectively by both producers and governments to prepare for the aftermath of the abolition of the quota system.
-en-1067
[list_price] => 0.00000 [cost] => 0.00000 [sell_price] => 12.00000 [weight] => 300 [weight_units] => g [length] => 0 [width] => 0 [height] => 0 [length_units] => cm [pkg_qty] => 0 [default_qty] => 1 [unique_hash] => d186d0b28e7cb454d5a9e3bdb4ee19af [ordering] => 0 [shippable] => 1 [path] => book/trade-adjustments-following-removal-textile-and-clothing-quotas [field_book_isbn] => Array ( [0] => Array ( [value] => [safe] => ) ) [field_book_number] => Array ( [0] => Array ( [value] => 222 [safe] => 222 [view] => 222 ) ) [field_book_short_title] => Array ( [0] => Array ( [value] => [safe] => [view] => ) ) [field_book_author_external] => Array ( [0] => Array ( [value] => Christian Buelens [safe] => Christian Buelens ) ) [field_book_old_path] => Array ( [0] => Array ( [value] => 1221 [safe] => 1221 ) ) [field_book_pages] => Array ( [0] => Array ( [value] => [view] => ) ) [field_book_publication_date] => Array ( [0] => Array ( [value] => 2005-05-01T00:00:00 [timezone] => Europe/Brussels [timezone_db] => Europe/Brussels [date_type] => date [view] => 01 May 2005 ) ) [field_book_author] => Array ( [0] => Array ( [nid] => [safe] => Array ( ) [view] => ) ) [field_image_cache] => Array ( [0] => ) [field_type] => Array ( [0] => Array ( [value] => BOOK [format] => [safe] =>BOOK
[view] => Printed book ) [1] => Array ( [value] => [format] => [safe] => [view] => ) [2] => Array ( [value] => [format] => [safe] => [view] => ) ) [print_display] => 1 [print_display_comment] => 0 [print_display_urllist] => 1 [signup] => 0 [tags] => Array ( ) [uc_order_product_id] => [0] => [taxonomy] => Array ( [12] => stdClass Object ( [tid] => 12 [vid] => 3 [name] => Trade Developments [description] => [weight] => 12 ) [89] => stdClass Object ( [tid] => 89 [vid] => 4 [name] => CEPS Working Documents [description] => Give an indication of work being conducted within CEPS research programmes and are aimed at stimulating reactions from other experts in the field. [weight] => 0 ) ) [files] => Array ( [923] => stdClass Object ( [fid] => 923 [uid] => 1 [filename] => 1221.pdf [filepath] => files/book/1221.pdf [filemime] => application/pdf [filesize] => 751755 [status] => 1 [timestamp] => 2009-09-16 10:34:45 [nid] => 1067 [vid] => 1067 [description] => 1221.pdf [list] => 1 [weight] => 0 ) ) [flatrate] => Array ( ) [shipping_type] => small_package [shipping_address] => stdClass Object ( [first_name] => [last_name] => [company] => CEPS [phone] => +32 2 2293951 [street1] => place du Congres 1 [street2] => [city] => Brussels [zone] => 94 [postal_code] => 1000 [country] => 56 ) [usps] => Array ( [vid] => 1067 [nid] => 1067 [container] => ) [weightquote] => Array ( ) [build_mode] => 0 [readmore] => 1 [content] => Array ( [print_links] => Array ( [#weight] => -101 [#suffix] => [#value] => [#prefix] => [#title] => [#description] => [#printed] => 1 ) [display_price] => Array ( [#weight] => -10 [#access] => 1 [#value] =>BOOK
[#delta] => 0 ) [#title] => [#description] => [#theme_used] => 1 [#printed] => 1 [#type] => [#value] => [#prefix] => [#suffix] => [#children] => Printed book ) [1] => Array ( [#formatter] => default [#node] => stdClass Object *RECURSION* [#type_name] => book [#field_name] => field_type [#weight] => 1 [#theme] => text_formatter_default [#item] => Array ( [value] => [format] => [safe] => [#delta] => 1 ) [#title] => [#description] => [#theme_used] => 1 [#printed] => 1 [#type] => [#value] => [#prefix] => [#suffix] => ) [2] => Array ( [#formatter] => default [#node] => stdClass Object *RECURSION* [#type_name] => book [#field_name] => field_type [#weight] => 2 [#theme] => text_formatter_default [#item] => Array ( [value] => [format] => [safe] => [#delta] => 2 ) [#title] => [#description] => [#theme_used] => 1 [#printed] => 1 [#type] => [#value] => [#prefix] => [#suffix] => ) [#title] => [#description] => [#children] => Printed book [#printed] => 1 ) [#single] => 1 [#attributes] => Array ( ) [#required] => [#parents] => Array ( ) [#tree] => [#context] => full [#page] => 1 [#field_name] => field_type [#title] => type [#access] => 1 [#label_display] => inline [#teaser] => [#node] => stdClass Object *RECURSION* [#type] => content_field [#children] => Printed book [#printed] => 1 ) [#title] => [#description] => [#children] =>| Attachment | Size |
|---|---|
| 1221.pdf | 734.14 KB |
With the end of the WTO Agreement on Textiles and Clothing and the removal of all textile and clothing quotas on 1 January 2005, the characteristics of global production patterns and trade flows will change substantially. Countries previously constrained by quotas will gain under the new situation. This paper analyses the restrictiveness of the quotas that were applied by the EU in 2004 and argues that large and instantaneous changes in terms of prices and import shares are a natural and expected adjustment that is proportionate in size to the quotas’ level of restriction. It also finds that import increases in volumes are much higher than in value, as quota abolition is accompanied by falling prices. In that light the paper discusses the rationale for safeguard measures and concludes that they are not justified. Indeed, sharp increases in imports are simply a natural adaptation to the new situation – to a large extent the shock of the quota removal will be absorbed by other countries. Nevertheless, the 10-year transition period should have been used more effectively by both producers and governments to prepare for the aftermath of the abolition of the quota system.
| Attachment | Size |
|---|---|
| 1221.pdf | 734.14 KB |
With the end of the WTO Agreement on Textiles and Clothing and the removal of all textile and clothing quotas on 1 January 2005, the characteristics of global production patterns and trade flows will change substantially. Countries previously constrained by quotas will gain under the new situation. This paper analyses the restrictiveness of the quotas that were applied by the EU in 2004 and argues that large and instantaneous changes in terms of prices and import shares are a natural and expected adjustment that is proportionate in size to the quotas’ level of restriction. It also finds that import increases in volumes are much higher than in value, as quota abolition is accompanied by falling prices. In that light the paper discusses the rationale for safeguard measures and concludes that they are not justified. Indeed, sharp increases in imports are simply a natural adaptation to the new situation – to a large extent the shock of the quota removal will be absorbed by other countries. Nevertheless, the 10-year transition period should have been used more effectively by both producers and governments to prepare for the aftermath of the abolition of the quota system.
Researchers
Related Publications
- Do the European Union’s bilateral investment treaties matter?
- Enhancing Regional Trade Integration in Southeast Europe
- Die Auswirkungen der ATC-Liberalisierung auf die deutsche Textilwirtschaft
- A Qualitative Analysis of a Potential Free Trade Agreement between the European Union and South Korea
- The mega new-generation deal with Canada
- Canada and the European Union: Prospects for a Free Trade Agreement
- The EU Budget at Risk of a New Policy Blunder
- Prospects for the EU's New Generation of FTAs
- Global Supply Chains, Standards and the Poor
- Trade Agreements, Multifunctionality and EU Agriculture
Editor's choice
-
Financial Markets
-
Politics and Institutions
-
Justice and Home Affairs
-
Economic Policy
-
EU Neighbourhood Policy
-
Economic Policy