Trade Liberalization in Textiles and Clothing and Developing Countries: An Analysis with Special Emphasis on the US Import Market

This article examines the role and importance of the textiles and clothing sector in the economies of the United States and developing countries as well as the qualitative changes in the dynamics of the industry. After briefly looking at the history of protectionism in the industry, the article addresses the impact of quota elimination on developing countries' exports to the United States. It also discusses the role of China as the dominant supplier. It suggests that with the elimination of quotas, most of the benefits will probably accrue to a handful of efficient suppliers, notably China and India. The article concludes by providing some recommendations to enable many developing countries to cushion the sudden effects of trade liberalization.