The Impact of the Wto on the Textile and Clothing Industry in the United States
Kadeem Brown
MB306
Individual Writing Assignment
The Impact of the WTO on the Textile and Clothing Industry in the United States
Introduction The textile and clothing industry is labor intensive and offers entry-level jobs for unskilled workers in developed as well as developing countries. In addition, relatively modern technology can be adopted in poor countries at relatively low costs. The textile and clothing industry also has high value segments where design, research and development (R&D) and marketing are important competitive factors. (1) The high end of the fashion industry uses human capital intensively in design and marketing. This also applies to market segments such as sportswear where both design and material technology are important. R&D is important in industrial textiles, where again, material technology is an important competitive factor. The textile, textile product, and clothing manufacturing industries include establishments that process fiber into fabric and fabric into clothing and other textile products. While most clothing manufacturers worldwide rely on people to cut and sew pieces of fabric together, United States manufacturing has become highly automated. (?) The clothing industry has moved mainly to other countries with cheap labor costs, thus that which remains in the United States must be extremely labor efficient to compete effectively with foreign manufacturers. (?)
History Textiles and clothing are closely related both technologically and in terms of trade policy. Textiles provide the major input to the clothing industry. Protection of the textile and clothing sector has a long history in the United States, dating back to the 1950’s. Japan, Hong Kong, China, India and Pakistan agreed to voluntarily export restraints for cotton textile products to the United States. In 1962, a Long Term Agreement Regarding International Trade in Cotton Textiles (TLA) was signed under the auspices of the GATT. (1)
MB306
Individual Writing Assignment
The Impact of the WTO on the Textile and Clothing Industry in the United States
Introduction The textile and clothing industry is labor intensive and offers entry-level jobs for unskilled workers in developed as well as developing countries. In addition, relatively modern technology can be adopted in poor countries at relatively low costs. The textile and clothing industry also has high value segments where design, research and development (R&D) and marketing are important competitive factors. (1) The high end of the fashion industry uses human capital intensively in design and marketing. This also applies to market segments such as sportswear where both design and material technology are important. R&D is important in industrial textiles, where again, material technology is an important competitive factor. The textile, textile product, and clothing manufacturing industries include establishments that process fiber into fabric and fabric into clothing and other textile products. While most clothing manufacturers worldwide rely on people to cut and sew pieces of fabric together, United States manufacturing has become highly automated. (?) The clothing industry has moved mainly to other countries with cheap labor costs, thus that which remains in the United States must be extremely labor efficient to compete effectively with foreign manufacturers. (?)
History Textiles and clothing are closely related both technologically and in terms of trade policy. Textiles provide the major input to the clothing industry. Protection of the textile and clothing sector has a long history in the United States, dating back to the 1950’s. Japan, Hong Kong, China, India and Pakistan agreed to voluntarily export restraints for cotton textile products to the United States. In 1962, a Long Term Agreement Regarding International Trade in Cotton Textiles (TLA) was signed under the auspices of the GATT. (1)