Labor Outsourcing in Textiles

Apparel and textiles are often considered as separate industries, as the latter produces the fibers and fabrics and the former produces finished garments from those fibers and fabrics. In an economic context, however, the problems faced by the two industries have been strikingly similar, and the two industries are often considered as if they were a single industry. The unified approach to apparel and textiles is followed in this literature review, and the term textiles industry refers to both the production of fibers and fabrics and to the manufacture of finished garments.

Quotas for the import of apparel and textiles into the United States are based primarily on the provisions of the MFAùMulti Fiber Agreement (Martin, 1994a, pp. 9-13). The MFA, which was first negotiated in the 1950s, was renegotiated in 1986 and was renegotiated again in 1992. The MFA provides for the negotiation of apparel and textile quotas, and these negotiations are conducted under the auspices of GATTùGeneral Agreement on Tariffs and Trade. Virtually all major textile importing countries and exporting countries are signatories to the MFA. The MFA provides the general framework for textile trade restraints and

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e cannot succeed in the long-run without some assistance from government. The United States government generally is deeply committed to the concept of international trade (Bangsberg, 1994a, p. 3A). The United States is the largest trading country in the world. The United States government considers it essential to increase exports, as opposed to reducing imports, as a means of balancing the international trade account. With respect to apparel and textiles, the Reagan Administration was adamant in its opposition to any additional legislative relief for the industry. The Reagan Administration claimed that the protection provided by the MFA is all that is justified for the industry. The Reagan Administration claimed further that the basis of public and congressional interest in the problems of the apparel and textile industry was the declining employment in the industry. The Reagan Administration, however, attributed the industry's declining employment solely to productivity improvements, and not to the competitive pressures of foreign producers. The American textiles industry, of course, did not agree with the assessment of the Reagan Administration, and would have preferred to see an expansion of the quotas provided for in
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Approximate Word count = 1883
Approximate Pages = 8 (250 words per page)

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