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WTO Sets Stage for Total Liberalization of Textile and Clothing Trade

Strategic Insights

— 1 min read

The World Trade Organization has announced that the total liberalization of trade in the textile and clothing sector will begin on January 1, 2005. Emerging countries, including Mexico, will have to adapt to the new trade conditions. Mexican industrialists are reportedly pessimistic about their ability to postpone the elimination of import quotas, which currently limit the amount of Chinese goods entering the country. The National Chamber of the Clothing Industry (CNIV) has begun documenting unfair trade practices and fighting against illegal subsidies granted to Chinese textile companies.

Key Takeaways:

  • The total liberalization of trade in the textile and clothing sector will start on January 1, 2005, as announced by Supachai Panitchpakdi, General Director of the World Trade Organization (WTO).
  • Mexican industrialists have low expectations regarding being able to postpone the elimination of import quotas, which currently limit the amount of Chinese goods entering the country.
  • The National Chamber of the Clothing Industry (CNIV) has begun documenting unfair trade practices and fighting against illegal subsidies granted to Chinese textile companies.
  • Chinese companies are accused of engaging in unfair trade practices, including illegal subsidies granted by the central and regional governments of China.
  • The CNIV has documented this activity and is taking action to address the issue.
  • Mexican industrialists are facing challenges in adapting to the new trade conditions, particularly with the elimination of import quotas.

Statistics:

  • Total liberalization of trade in the textile and clothing sector will begin on January 1, 2005.
  • Import quotas, currently limiting Chinese goods entering Mexico, will be eliminated on January 1, 2005.
  • 10 years have passed since the elimination of import quotas was agreed upon.
  • The National Chamber of the Clothing Industry (CNIV) has documented unfair trade practices by Chinese companies.

Sources:

  • El Economista article, "Liberalización total en la industria textil y tejidos", September 29, 2004.
  • Corporate Mexico by Internet Securities, Inc. via COMTEX, "WTO Sets Stage for Total Liberalization of Textile and Clothing Trade".

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