The textile industries in India and the People's Republic of China were examined. 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 was followed in this research, and the term textiles industry refers to both the production of fibers and fabrics and to the manufacture of finished garments.
Among the geographic factors affecting export planning are legal barriers to entry of international markets. For both China and India, the Multi Fiber Agreement which is in effect unilaterally imposed by the major importing countries, and textile import restrictions imposed by the European Community constitute significant barriers to market entry.
Quotas for the import of apparel and textiles into the United States are based primarily on the provisions of the Multi Fiber Agreement. The Multi Fiber Agreement provides for the negotiation of apparel and textile quotas, and these negotiations are conducted under the auspices of GATT (the General Agreement on Tariffs and Trade). Virtually all major textile importing countries and exporting countries are signatories to the Multi Fiber Agreement. The Multi Fiber Agreement provides the general framework for textile trade restraints and allows any importer country to negotiate bilateral quota agreements with exporter countries. When importer and exporter countries cannot agree, the Multi Fiber Agreement permits importer countries to unilaterally impose textile import quotas or other textile import restrictions.
The great majority of clothing imports into the United States are from the lower wage countries in Asia, although some fashion ...