Will China Clothe the World?

Asem Click to edit Master subtitle style Hazret Uuriintuya

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WTO Agreement on Textile and Clothing

Established on Jan 1, 1995 Terminated on Dec 31, 2004 WTO 10-year transitional programme , with 3 stages. The Textiles Monitoring Bodyhas been established to supervise the implementation of the ATC
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ATC: Agreement on Textile and Clothing

All textiles and clothing products will be fully integrated into WTO rules, and bilateral quotas removed. Agreement to bring full multilateral disciplines to this sector. Textiles and Clothing had hitherto been the only sector of international trade in manufactured goods, which had falle:n outside of multilateral 2/25/13 rules.

Le Chinois became member

During the transitional year In 2001, China became the member to WTO.

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What is Big Bang

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The Big Bang of clothing

Since Le Chinois became the member of WTO, its actions under the ATC brougt unexpected consequences to the implementation of 10 year transitional programme ATC. It is called Big Bang of clothing by American Importers.
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Its consequences
Positive (Loss) Negative(Gain)

For China, and India, Millions of workers could be laid off Millions dozens of poor countries Panic in of new jobs Making tons of wealth Caribbean, Central America, Northern Africa, South East Asia, especially Bangladesh.

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In America

New flood of inexpensive imports Some 600.000 jobs could be lost Since Jan 2001, the nations has lost 344.300 textile and apparel workers.

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Le Chinois for the blame

Unfair and illegal practice in its textile operations Blocking some textile imports itself such as upholstery material Stealing designs and copy them Currency undervalue permitting China to sell its textile cheaply Some 90 percent of apparel sold in the 2/25/13 US

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BANGLADESH The Garment Exporting country

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Bangladesh The victim of ATC and Le Chinois

Exports

about $5.5 billion worth of garments Which is 76 percent of its total exports Bangladesh textile industry empoys 2.5 million people ( :O = whole mongolia) Provide economic support for some 30 million people

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America + Developing Countries Common Goal: Stopping China from taking over the worlds textile business.

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Biggest lobbying effort

More than 100 textile CEOs and their lobbyist last month sought congressional help in persuading the administration to limit the growth in Chinese textile imports.

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Berry amendment
America,

to limit Chinese import indirectly, initiated Berry Amendment which is the policy to provide all military neccesities. Such as uniforms, parachutes, camouflage materials, berets should be made in US instead of made in China.

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As a result
US

industry has tried to delay the end of quotas for 3 years. Consideration of the quota was put off until Oct 1 at the next scheduled meeting of WTO. On the other hand, US trade officials neither supporting nor standing the WTO quota removal programme, partly because they are concerned about their reputation as advocates of free trade.
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Conclusion
WTO

initieaded 10 year transitional programme, ATC, to remove quota on trade in 1995-2004 China joined WTO in 2001, started to dominate world textile market under the ATC programe. America, Bangladesh and developing countries lost wealth, and jobs as a result of Chinese involvement. Both sides tried to find a way to change the regulation. However, there is no distinct announcement about changing the policy from WTO.
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Vocabulary
Hitherto

Upholstary Amendment Relish Textile

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