John Whalley of University of Western Ontario has analysed the impact caused by dismantling of MFA, in his paper with help of data collected from US, EU, China and other sources . India has been able to log an increase in market share whereas other countries’ shares have either diminished or remained steady, he pointed .China’s textile and clothing exports increased at a rate of 7 percent during 2005 .Trade pattern between countries and in product categories have undergone sea changes Cotton clothing exports from India to the US increased by 44 percent. “ILO (2005) data for early 2005 shows an increase in India’s textile exports between January and March 2005 alongside a fall in exports of clothing and ready made garments,” he adds . “The removal of internal quota allocation schemes in the Asian countries for exporters could provide a larger source of gain for Asian exporters than the more direct trade impacts of the removal of the MFA quotas,” he said .The US and the EU still have very high import duties for clothing and abolition of MFA has not had any direct impact on tariffs .There will not be “extreme gravitation to China and India as they are two large low-cost suppliers with economies of scale,” views Whalley .China and India will take several decades to reach growth levels of Korea and Taiwan and much depends on Asian low-wage suppliers like Vietnam, Cambodia etc, he commented .Source: Fibre2fashion.com .
Date:5/8/2006
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