Market Access in Textiles and Clothing: Linkages Between Trade and Trade Policy

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) December 21, 2007 -- Market Access in Textiles and Clothing: Linkages Between Trade and Trade Policy

Quotas on international textile and clothing trade were finally eliminated at the end of 2004 in accordance with the Agreement on Textiles and Clothing (ATC). Since then, the attention of policy makers has shifted to the question of import tariffs. Tariffs on imports of textiles and clothing in major developed countries are high relative to those levied on other industrial products. Significant reductions in these tariffs would therefore open up opportunities for trade expansion, which would be of particular benefit to developing economies.

However, the potential for tariff reduction is hampered by the fact that developed countries employ preferential tariff rates or duty-free access to favour particular countries or regions as part of their trade policies. A further complication is the use of origin rules which restrict preferential treatment to garments made either from local materials, or from materials made in the country or region granting special treatment—such as the USA or the EU. To achieve a comprehensive reduction in tariffs—and hence an expansion of trade—a shared understanding and appreciation of the issues is needed. The Doha Round of international trade talks provides a timely forum for the discussion of such issues.

Table of Contents
Summary
Overview of the tariff situation
Textile and clothing tariffs are much higher than
overall industrial tariffs
Comparative tariffs on main traded items in four major
markets
Developing country tariffs
Preferential schemes at a glance
USA
Canada
Japan
Do tariff preferences provide a significant competitive
edge?
USA
EU
How origin rules constrain the trade of preference-
receiving countries
EU origin rules
US origin rules

Progress of developing countries benefiting from
preferential access but bound by origin rules
Progress of developing countries benefiting from
preferential access but not bound by origin
rules
Exports from those tied to US or EU materials are
declining or stagnating
Those not tied to US or EU materials enjoy the
flexibility of sourcing from competitive
suppliers
Market access in the Doha Round
Statistical appendix
List of tables
Table 1: Prevalence of different levels of tariffs on
imports of textiles and clothing and on all

non-agricultural products by Canada, the USA, the EU
and Japan, 2005
Table 2: USA: tariffs and imports of selected clothing
products, 2004
Table 3: EU imports from Bangladesh benefiting from GSP
duty concessions, 2000-03
Table 4: USA: textile and clothing imports from Mexico
and Dominican Republic, 1990-
2004
Table 5: USA: textile and clothing imports from Jordan,
2000-04
Table 6: USA: textile and clothing imports from
selected Sub-Saharan African countries,
2000-04
Table 7: Reliance of Mexico, Dominican Republic and CBI
countries on textile and clothing

Market Access in Textiles and Clothing
Table 8: Reliance of Morocco, Tunisia and Romania on
textile and clothing trade with the
EU, 2003
Table 9: Main sources of textile imports for the
garment industries in selected countries, 2002
Table 10: Comparative MFN tariffs on imports of
selected textile and clothing products into
developed countries, as of January 1, 2004
Table 11: USA, EU, Japan, Canada, Australia, South
Africa and Taiwan: bound, applied and
statutory tariffs on imports of selected textile and
clothing products, as of March 2005

Table 12: Argentina, Bangladesh, Brazil, China and
Colombia: bound, applied and statutory
tariffs on imports of selected textile and clothing
products, as of March 2005
Table 13: Costa Rica, Egypt, El Salvador, Guatemala,
Honduras, and Hong Kong Bound:
bound, applied and statutory tariffs on imports of
selected textile and clothing products, as of
March 2005
Table 14: India, Indonesia, South Korea and Macau:
bound, applied and statutory tariffs on
imports of selected textile and clothing products, as
of March 2005
Table 15: Maldives, Pakistan, Paraguay, Peru and Sri

Lanka: bound, applied and statutory
tariffs on imports of selected textile and clothing
products, as of March 2005
Table 16: Thailand, Uruguay, Malaysia, Mexico and the
Philippines: bound, applied and
statutory tariffs on imports of selected textile and
clothing products, as of March 2005
Table 17: Singapore, Turkey, Jordan, Morocco and
Tunisia: bound, applied and statutory
tariffs on imports of selected textile and clothing
products, as of March 2005
Table 18: Effective average rates of duty on US textile
and clothing imports from selected

sources, 1999-2004
Table 19: Effective average rates of duty on US
clothing imports from selected sources, 1999-
2004
Table 20: Effective average rates of duty on US textile
imports from selected sources, 1999-
2004
Table 21: Import duties collected and effective rates
of duty on US imports of textiles and
clothing from selected sources, 2002-04
Table 22: Import duties collected and effective rates
of duty on US imports of clothing from
selected sources, 2002-04
Table 23: Import duties collected and effective rates

of duty on US imports of clothing from
selected sources, 2002-04
Table 24: Origin requirements for textiles and apparel
imported under US free trade
agreements and preferential arrangements, 2005
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