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Washington Outlook Archive

Study Shows Import Surge Of Quota-Free Products

James A. Morrissey, Washington Correspondent

The National Council of Textile Organizations (NCTO) has issued a report designed to demonstrate that China will dominate textile and apparel trade in a quota-free world. The analysis focuses on 25 textile and apparel product categories released from quotas 28 months ago where Chinese imports have grown from 9 percent of the US market to 65 percent. At the same time, according to the analysis, all major suppliers except India have shown major declines. India's market share remained at a static 3 percent.

NCTO claims that China cut its prices for the decontrolled products by 48 percent and this correlates with their increases in market share in the past 28 months. The textile lobbying group sees the analysis as an important tool to predict Chinas behavior when the remaining quotas are removed next January 1.

June 2004