Clothing is one of life’s necessities, a part of our lives, something we cannot do without. Therefore, a new trade policy that lowers clothing prices, making much more variety accessible to the consumers, directly affects us all. Such a change took place at the beginning of 2005. The developed world, or more specifically, the U.S., Canada, and the European Union (EU) discontinued most of their limits on imports of yarn, fabric, and clothing from developing countries. These quantitative restrictions were undertaken with the inception of the Multi-fiber Arrangement in 1974. Previously there had been earlier arrangements against developing country exports but they were mostly specified for cotton goods. However, under this Arrangement, trade in textiles—that is, yarn, fabric—and clothing, all were managed through quotas. In 1995, under a new agreement formally known as the Agreement on Textiles and Clothing (ATC), it was decided to incorporate this system of quotas into the aegis of the WTO. January 1, 2005, was a big hallmark in the sense that it marked the end of a 10-year phase-out of the MFA quotas.
This step was much celebrated by the developing world basically, because of the significance of this highly important sector regarding the overall export portfolio of these countries. The Textile and Clothing (T&C) sector accounts for US $370 billion in world exports, almost 8% of the total world trade in manufactured goods.[1] Being labor intensive, the industry offers developing countries an alternative to advance early stages of industrialization with high potential of employment generation and export expansion. T&C exports account for more than 70 % of total exports in Bangladesh and Pakistan, 50% in Sri Lanka and around 25% in India and China.[2] This surely gives a very apt reason why any policy changes related to this sector hold such significance.
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All the years that the MFA was operating, it was unanimously agreed that it was a deviation from the rules of the General Agreement on Tariffs and Trade (which later changed to WTO), but it was still allowed because of the interests of the developed world. Given the disparity in labor costs between developed and developing countries, it was not surprising that trade restrictions had been the norm in T&C trade since the 1930s. A key feature of these quotas was that they were imposed only by a subset of importers on exports from a subset of exporters. A positive feature in this regard was that the importers allowed the exporters to allocate the quotas howsoever they chose, and hence potentially to benefit from the higher prices in the restricted markets.
The MFA, initially, was introduced only as a shorth-term basis solely to allow developed countries to adjust to imports from the developing world. Developing countries have a natural advantage in textile production because they are labor intensive and they have low labor costs. This provided for the application of selective quantitative restrictions when surges in imports of particular products caused, or threatened to cause, serious damage to the industry of the importing country. At the heart of the MFA were a set of bilateral agreements between developed-country importers, such as the U.S., and developing-country exporters, such as China and Bangladesh. The MFA did not apply to trade among the developed countries. Each agreement governed trade in as many as 105 categories of textiles and clothing, with new categories added to the agreements as the need to avoid “market disruption” arose.
The initial effects of this Arrangement were quite evident. The existence of quotas dramatically reduced the supply of textiles and clothing in the restricted markets, and hence shortage created an increase in the prices of these goods in those markets.[3] Also the quotas used to restrict imports were in limited supply, and became valuable because of the difference between the price on world markets, and the prices in the restricting markets. Competition rose and it was the skill of the individuals or firms that ended up in them having access to the quotas. Since the textile and clothing quotas were given to the exporting countries, the values of these quotas (quota rents in economic terms) were a potentially important source of gains to developing country exporters. However, the same exporting countries suffered because they were not able to employ their resources efficiently. In particular, they were restricted in their ability to use their comparative advantage in textiles and clothing to create employment in these sectors. Because of this many countries, despite having quotas could not actually fulfill their bound rates, which was the source of diminished productions and lesser exports.
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On the other side, the quotas also affected prices in unrestricted markets. Many highly efficient developing-country exporters of textiles and clothing diverted some of their exports to unrestricted markets, and this depressed the price received for exports even to these markets. also the quotas reduced the efficiency of the global system for processing fibers and textiles into finished goods by creating incentives for much textile and clothing production to occur either in high-cost industrial countries; in high-cost “sunset” producers such as Hong Kong, China; or in small and/or remote developing countries whose only comparative advantage arises from a lack of quotas. These inefficiencies in processing reduced the demand for textile and fiber inputs, and hence their prices. For Pakistan, this was a serious concern, given the importance of both raw fibers (especially cotton) and textiles in national output. Abolition of the quotas was expected to increase the efficiency of the processing chain and hence increase the demand for these raw materials and intermediate inputs. In one sense, the impact of the MFA was quite simple. By limiting imports, the U.S. and the EU raised their domestic prices of clothing.
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Domestic production rose, and domestic consumption fell. Outside of these two markets, however, the effects were more complex, as the restraints on one set of countries created opportunities for others, driving changes in world clothing markets. Limits on exports by Japan and Hong Kong increased export opportunities for Taiwan and South Korea. Restraints then imposed on Taiwan and South Korea increased opportunities for Thailand and Indonesia. In this way, the MFA grew, but investment in clothing production also spread. Entrepreneurs from countries limited by the MFA shifted capital and expertise to countries that otherwise lacked the ability to export significant amounts of clothing. So, for some countries, the attempt to limit global exports actually spurred an increase in exports.
The positives and the negatives aside, the basic problem with the Multifibre Arrangement was that it was a major departure from the GATT rules as mentioned above, particularly the principle of non-discrimination. According to a World Bank/IMF study, the system cost the developing world 27 million jobs and $40 billion a year in lost exports.[4] Hence, at the GATT Uruguay Round, it was decided to bring the textile trade under the jurisdiction of the World Trade Organization. Since then, international textiles and clothing trade has been going through fundamental change under the 10-year transitional programme of the WTO’s Agreement on Textiles and Clothing (ATC).
The WTO Agreement on Textiles and Clothing (ATC) 1995-2004
Finally, the Uruguay Round of the General Agreement on Tariffs and Trade, laid the foundation of what for many could be the end of the sector’s especial treatment in the context of world trade liberalization: The Agreement on Textiles and Clothing (ATC).
The ATC was born with the objective of fully incorporating the T&C sector into WTO rules and disciplines but in a gradual process that would give importing countries the transition period to adjust their domestic sector to the new rules avoiding sudden and costly disruptions. The major components of the ATC agreement were: a) the designation of a “product coverage” or “list of products” subject to MFA restrictions, out of which the importing countries could select the items to gradually integrate to GATT-WTO rules, b) the “integration program” in three stages: 1995-1997, 1998-2001 and 2002-2004, c) a “quota liberalization system” also in those three stages, and d) a mechanism of “transitional safeguards.”[5] (Annexure 1) The ATC was a breath of fresh air for the developing countries as their exports were quite constrained under the MFA system. The expectation was that during the period 1995-2005 ATC would gradually eliminate quotas, generating a smooth transition to the total integration of the sector to the GATT-WTO system of disciplines. T&C trade was expected to greatly expand during the transition period and create at least 20 million new jobs in developing exporting countries[6]. ABOLITION OF THE MULTI-FIBER AGREEMENT
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Under the supervision of Textile Monitoring Body (TMB) and with the ATC in place, MFA was abolished as of the 1st of January 2005. The elimination of the MFA was expected to lead to longer term structural changes in the global textile industry, which were much harder to predict before hand. Under the MFA the producers were always in pursuit of profits which introduced serious inefficiencies in clothing production. Even with the total removal of MFA, these would be hard to remove. Firms in many developing countries were structured to acquire quota and then maximize the profits from this quota rather than simply to compete in the marketplace. Similarly, U.S. and EU importers pursued the “excess profits” inherent in a quota system and, by some measures, succeeded in capturing a significant share. The problem of quantifying these factors added uncertainty to the outlook for the post-MFA world. Another source of uncertainty is that the elimination of the MFA did not occur in isolation.
Other forces, such as the depreciation of the U.S. dollar and other technological changes also took place which could affect the textile and clothing trade. For example, In the United States, a weakening dollar would tend to put upward pressure on clothing prices, perhaps offsetting the downward pressure exerted by the removal of the quotas. Moreover, clothing prices around the world have fallen in recent years as globalization and technical change increased trade and reduced distribution costs. With so many other changes taking place in the global economy, it was hard to predict exactly how various economies; especially those in the developing world would fare in the aftermath of MFA abolition. WORLD TRADE AND TEXTILE SCENARIO
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The composition and direction of world trade in textile changed dramatically during the last 40 years. Textile and Clothing sector plays a very important part in the balance of payment position in most of the countries around the world, therefore any changes in this sector impact more or less the exports and imports of most of the trading world. Without delving into the details of the causative factors, some major lessons for Pakistan can be learnt against the backdrop of the changes in the world textile trade regime. As mentioned above, there was a rapid increase in the T&C sector in the last four decades. World trade in Textiles and Clothing (T&C) grew from $6 billion in 1962 to $342billion in 2001, levels which were very large in relation to Pakistan’s textile exports of less than $6 billion in 2001.[7]
However, a mixed trend was seen during this expansion. Tracing back to the early stages of development, Trade in T&C grew faster than total world trade in the period prior to 1974, its share in world trade leveling off till 1985 before increasing again until 1994. Between 1994 and 1998 the share of T&C in world trade declined gradually, jumping up slightly in 1999 before declining again in recent years. In all these years the share of T&C remained less than 6% of total world trade.[8] Thus the MFA and ATC have had an important constraining impact on the growth of total T&C trade. However Pakistan’s export prospects and its human development in the future need not be constrained by developments in the textile sector alone. Diversification in trade is an important recommended alternative for Pakistan, and for that matter, developing countries.(DC’s)
During this period, the share of developing countries in T&C exports increased rapidly, surpassing the share of the industrial countries (IC’s) in the mid-1980s. Now developing countries account for nearly 60% of world T&C exports.[9]
Within T&C, during the early 1960s, the value of world textile trade was twice the value of trade in clothing. The shares have reversed after clothing trade increased 128 times while textile trade grew 36 times. Now clothing represents the larger share in world textile. Clothing trade; amounted to US $147 billion, nearly 60% of global trade in textiles & clothing in 2000.[10]
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Hence, a major shift in the share of the textile and clothing exports were seen as the years progressed. Although the developing world had a bigger market for these products, but the constraining impact of MFA was felt by all. With this world situation in perspective, a clearer picture emerges for analyzing where Pakistan stood in the MFA era and how its removal will affect Pakistan’s most important export earnings sector.
IMPACTS FOR PAKISTAN
For an individual country such as Pakistan, the analysis of the post-MFA situation is considerably more complicated, and must take into account the extent to which the quotas imposed on Pakistan restricted her exports relative to those of other exporters. Whether Pakistan is better or worse off after the quotas are abolished is a complex question, the answer to which depends on the extent to which exports from Pakistan are restricted relative to exports from other suppliers; the strength of the competitive relationship between the two suppliers; and the extent of complementarities associated with global production sharing. [11]
What is to be kept in mind is whether developing countries as a group gain or lose from abolishing the system of textile and clothing quotas. This is because it is not just Pakistan that is facing quota abolition but its competitors as well are under going this transition. What really happens depends on a few major variables which define the T&C sector under the MFA. What needs to be considered is whether the loss of the quota rents associated with the regime outweighs the gains due to increased efficiency in resource allocation and in consumption, and the rise in world market prices associated with quota abolition. Because of the doubtful legality of the original MFA quota system under the GATT, the importing countries felt the need to give the exporting countries the quota rents associated with these discriminatory quotas, and exporters lose these rents once the quotas are abolished. Part of this loss is more imagined than real, since the quota rents come with substantial costs of administration and quota management; the quota allocation system creates substantial costs; and exporters frequently lose some of the rents through rent-sharing with importing firms.
Before maneuvering towards the circumstances prevalent in Pakistan in the presence and then the removal of the quota regime, we need to first truly understand why any changes affecting, adversely or otherwise, Pakistan’s textile sector, hold such significance. According to the Pakistan Survey, 2002-2003, textile industry contributes more than 68% in total exports earnings and provides employment to 38% of the manufacturing labor force. The export of textile consists of US$ 7.33 billion. Although the growth in textile sector is very promising but stagnation is there in terms of Pakistan’s share in world export. Textile industry is facing different challenges to retain share of world export. Narrow geographical spread of export commodities; focus on low value-added yarns and fabrics rather than high value-added garments and made-ups, domestic non- availability of contamination-free cotton, rather inactive man-made fibres sector and lack of skilled manpower are a few challenges to name.
According to the experts, much of Pakistan’s output is high-quality apparel, which involved more labour than yarn or unfinished cloth. Today, almost 20% of the country’s national income comes from manufacturing, and nearly half of its industrial labour force works in the textile sector.[12] Globalization has been good to Pakistan. Over the past 20 years, real income has averaged an impressive 5% yearly increase. Thanks to rapid industrialization, the trajectory has been upward for many years. Like most developing nations, textiles offered Pakistan the easiest path for large-scale employment. High-quality local cotton, a motivated work-force and low labour costs made the sector boom. However, determining the overall impact of the quota regime on any country is extremely difficult. At the final-product level, a great deal depends on whether the country exports most of its production to restricted markets. Those that depend heavily on the restricted markets are likely to lose more from declining prices than they gain from increases in prices on the unrestricted markets. Conversely, countries whose exports are tightly restricted– either because their quotas are small, or because their comparative advantage is particularly strong—are more likely to gain from the increase in prices on world markets following abolition of the quotas.
The Barriers to be Affected by Quota Abolition
One thing that needs to be clarified is that the abolition of quotas in January 2005 eliminated some, but not all, of the distortions affecting global trade in textiles and clothing. While the quotas were abolished, tariffs on textiles and clothing still remain, frequently at very high levels. However, unlike tariffs or export taxes, export quotas are nontransparent in their effects on trade. Without detailed analysis, it is very difficult to know whether the quota giving Pakistan the right to export 8,614,748 square meter equivalents (SMEs) of knitted cotton shirts to the United States in 2002 was restrictive or not, let alone know whether the whole system of quotas was restrictive. To deal with this problem, we note that the effect of a quota is like that of an export tax or an import tariff in raising the price to the importer. In those cases where an exporter has to purchase a quota[13] in order to make the export, this link is obvious—the exporter pays for the quota and can only be expected to do this if he is able to pass on the cost.
Even where the exporter receives the quota without charge– as in cases where quotas are allocated based on past performance—the cost of exporting is raised because the exporter must pass up the opportunity to sell the quota to another exporter using it for export. However, when quotas are abolished for all exporters, a quite different picture emerges. The increase in output of textiles falls from 6 to 4 percent. The implications for the output of clothing are much more dramatic. Instead of rising by 19 percent, clothing output falls by 24 percent. The decline in clothing exports is even more marked, with exports falling by 37 percent. Exports of textiles rise, however, by 14 percent.[14] Examination of the detailed model results reveals that the main cause of this increase in textile exports is a sharp increase in exports of textiles to China, which more than compensates for reductions in exports to the Canadian, European and US markets brought about by increased competition in these markets.
Output and exports of leather products expand sharply, taking up labor and other resources otherwise used in the clothing sector. The positive impact of improving textile sector productivity on the output and exports of the clothing sector is, however, limited. The decline in the price of domestically-produced textiles has only a small positive impact on the competitiveness of the clothing sector, which uses both domestic and imported textiles. Improvements in productivity in the clothing sector reduce the adverse impacts of quota abolition on output and exports from this sector, but do not offset the impact of increased competition in quota-restricted markets. Hence the dual picture that emerges is, raising the productivity of the textile and garment sectors in Pakistan will be much more important following quota abolition than it has been to date. On the other side, the benefits of productivity improvements to Pakistan will be much greater.
Under the quota regime, increases in productivity increase exports, which must be sold in relatively small unrestricted product markets where prices are depressed by the export expansion. After abolition of the quotas, the major industrial markets will become much more price responsive so that smaller price declines will be required to expand global exports from countries where productivity has risen. However, countries that lose competitiveness can expect to suffer larger losses in market shares. In the case of Pakistan, exporters will be sheltered to some degree by differences between Pakistan’s product mix and competitors’ product mixes, the competition is likely to be intense in many product categories.
A key issue will clearly be to ensure that Pakistan’s exporters of clothing have access to the best-quality inputs available world wide, rather than being forced by explicit policy or by administrative problems to rely only on domestically-produced inputs. Hence what seems to be the case is that this industry is one where competition on price and product quality was important even in the presence of quotas, and has now become paramount after the abolition of the quotas. Now, it will also be enormously important to raise the productivity of the T&C sector through improvements in policies and in management so as to reap the maximum benefits from the phase out of the Multi-fiber arrangement. POLICY NOTE: STUDY UNDERTAKEN
There is no consensus on the impact of the post-ATC scenario. Countries in Asia whose export expansion was effectively blocked by the quota system will undoubtedly gain from the opportunity to export unrestrained. This new scenario may also draw in investment from other sectors, expanding the size of the activity. This can contribute to human development objectives of upgrading skills, enhancing incomes, creating jobs and increasing revenue that can be re-directed for human-development enhancing social expenditures. Countries that were sheltered by the quota system (“quota babies”) will be forced to undertake policy reforms and export strategies aimed at increasing on competitiveness that will have large spill-over effects on other sectors. In some cases, schemes to promote human development by imposing conditions on the allocation of quotas to domestic suppliers will obviously be no longer possible.
Some countries may be hit by a multitude of factors – loss of quotas, preferential margins on tariffs, shift in production sites, etc., that may lead to closure of plants, loss of jobs for women without alternative employment opportunities, disturbed social cohesion, and decreased state incomes. However, the commitment by the major trading nations of the world to abolish the quotas on textiles and clothing is something that Pakistan and other major developing country exporters have sought for many years. Given the fact that this agreement violates all of the fundamental principles of the GATT—and particularly the provisions on nondiscrimination and the outlawing of non-tariff barriers that are at the core of the GATT– this was a major achievement. Given Pakistan’s strength in textiles and clothing, there is every reason to expect Pakistan to gain from its abolition in the longer term. However, the increase in competition resulting from its abolition will likely require major adjustments in Pakistan during the transition period. Many questions pertaining to the fate of the Textile and clothing sector post-MFA have been brought to light.
Various studies have also been undertaken to find the implications of quota abolition.[15] At present what is expected is that some of Pakistan’s competitors will benefit from preferential access to industrial country markets, either under preference schemes such as the EU’s Everything But Arms (EBA), or through preferences provided under regional arrangements. Hence, to fully assess the impacts of quota abolition, we need to take into account both the effects of removing the quotas against Pakistan’s exports, and those of other important exporters. In this regard the following study has been undertaken to specifically see how the Textile and Clothing sector is faring after almost two years of quota abolition. As mentioned before, an important consideration for Pakistan is the fact that quotas have not only been removed from its own T&C industry. Restrictions have also been eliminated from its major competitors such as China and India that are much more efficient and more competitive in the world market.
This is the precise reason why there are so many divergent views regarding post-quota impacts. The above analysis clearly outlines how quality of products and their prices are going to dictate the trend of the exports from this sector. The following report also seeks to shed some light on those aspects that have been recognized but not given due importance by most of the papers pertaining to this subject. A quantitative analysis of the extent of the change in exports during the two year post-MFA period is provided. Further more, the importance of value addition in our exports has been highlighted as it is felt that this will be the deciding factor which diversifies one country’s exports from the rest of the world. It has been stressed again and again that a transition from the intermediate products towards the final goods is what is required especially in the case of Pakistan where most of our exports are of low value addition. This important facet of the Post-quota textile and clothing sector has been quantitatively addressed so as to see whether such a transition will indeed be fruitful or not. Lastly a comparative analysis between Pakistan and its major competitors has been undertaken to see how Pakistan is going to fare in the increasingly competitive environment where the forces of Price and quality are going to dictate who stays ahead and who suffers due to their inherent incompetence.
CHAPTER 2: REVIEW OF LITERATURE
In the ever globalizing world, countries are integrating with each other in all arenas, be it culture, education, politics or trade. In this context, Pakistan is also joining the comity of nations in removing its trade barriers and opening up its economy to make most of this opportunity. One of the steps that have been taken in this regard is complying with the WTO rules and removing all quantitative restrictions on exports of the textile products. There are many serious consequences of this move and various impacts of the phasing out of the agreement on Textile and Clothing (ATC) have been put forward.
With textiles, clothing and fibers making up close to three-quarters of Pakistan’s exports, quota abolition could have major impacts for the overall performance of Pakistan’s economy. As argued by the authors of Textile Vision (Committee on Pakistan’s Long Term Textile Policy 2000), by the Gherzi report (2000), and by industry participants (Aziz 2001) much needs to be done to strengthen this key industry. Although Pakistan stands to gain from quota removal but problems such as price competitiveness, quality of products and non-availability of raw materials (Naz, Bhatti 2004) could hinder the increases in our textile export base when all the given quotas are removed. With opening up of all avenues of trade, more earnings can only be reaped from the exports if the production of the sector is enhanced.
However, with low wages and the dismal working conditions of the laborers (Memon 2004, David, Anthony 2004) how can one expect increases in the productivity of the textile sector? Another important aspect that has been highlighted again and again is that Pakistan needs to shift its focus on exporting value-added products (Memon 2004) and needs to make full use of the massive investment that has taken place in Balancing, Modernization and replacement i.e. BMR (Abernathy.H.Fredick et al 2004).
It is feared if the high value products such as garments are not promoted, then the major decline in the world market share could be seen in the clothing exports of Pakistan. Keeping in view the global competitiveness that is going to be prevalent; innovation, marketing and processes of product differentiation (Khan 2003, Memon. 2004) should be given great significance as in the changing world these basic things are going to help countries create their niche in the world market.
Hence, low gains in productivity, economic and technological inefficiency and dearth of investment in this major sector of Pakistan’s economy retarded exports even further. (Bashar 2002, Fry 2005, Seigman. 2005).
Domestically, the price of inputs (Ahmad, Ara 2005) and the utility costs (Baloch. 2006) such as electricity, gas, water etc are some factors that can play havoc with the prices and the overall competitiveness of the products. Due to this these commodities lose out all their markets in the global world. The government is also not doing its part in providing export subsidies and those which are provided to the textile sector increase the price of the products abroad and reduce their market size. (Khan 2003, Ahmad 2006, Ghausi 2006).
It has also been observed that the textile sector gives minimal importance to the development of the human capital and there is total absence of a Human resource policy. (Ghani, Siraj 2006).
Therefore, although most of the analysts were optimistic about the future of Pakistan’s textile sector but they do present their reservations regarding whether Pakistan will fare well with the likes of India and china also coming out of these quantitative restrictions. Undoubtedly both India and china have a lot to gain from this development but their growth does not necessarily have to come at the cost of Pakistan’s market share. Nonetheless the textile exporters and the policy makers alike in Pakistan should take a closer look at the weaknesses prevalent in our sector and move forward with caution, making full use of their inherent abilities and forte.
CHAPTER 3:
The following chapter seeks to outline the basic components on which the proceeding paper is all about. After venturing into the details of the conversion of MFA into ATC followed by its abolition and the expected effects on trade round the world, we now move forward and try to clearly demarcate the issues that will be dealt with in this particular report.
PROBLEM STATEMENT
The broad problem area which this report seeks to identify and empirically test pertains to the following analysis. Based on the trends that have been prevailing since quotas have been abolished, has there, in reality, been an increase in the exports of Textile and Clothing? Furthermore, how important is the investment being done in these sector relative to the increase in competitiveness the world over? Keeping in mind that Pakistan’s major competitor’s such as China, India etc also face removal of these restrictions, where does Pakistan stand in comparison to the T&C giants? And what are some of the policy implications that are required, not just to react to the consequences of the reform, but to take advantage of the opportunities it creates. OBJECTIVES OF THE STUDY:
The importance of the Textile and Clothing sector, especially in the case of Pakistan cannot be ignored. As mentioned before, the year 2005 marked a huge landmark in the history of this sector. It is for this precise reason that the present study has been undertaken so as to empirically prove some of the apprehensions and predictions regarding Pakistan’s Textile exports post-quota. Therefore a hypothesis is formulated to see whether there has been an increase in exports and what has been the trend in the two years after the abolition of MFA. Further more this study also tries to emphasise the significance of investment in the textile sector as cost reduction, price competitiveness and quality are going to be the dictating factors in the new scenario. The end note is going to be with the comparative analysis between Pakistan and its major competitors including China, India and Bangladesh. This analysis is provided to see how important value addition and the export of final products are going to be in the post MFA world trade.
LIMITATIONS:
The foremost limitation that was faced while researching for this report was the lack of information regarding the post quota situation as this is a fairly recent phenomenon. Also, a lot of divergence was seen in the data that was collected from the domestic sources as compared to the international ones and due to this very problem, all the data that was collected had to be verified from different sources.
References
[1] Economic Survey of Pakistan (2205-2006)
[2] All Pakistan Textile Mills Association (APTMA)
[3] World Bank study undertaken by Will Martin for November 2003 on, ‘Textile and Clothing Policy Note: Implications for Pakistan of Abolishing Textile and Clothing Export Quotas.’
[4] World bank study in collaboration with the International Monetary fund. This paper was drafted at the request of the World Bank’s Pakistan country team by Will Martin of the World Bank’s Development Research Group and the Trade Department [5] The Official WTO website; www.wto.org.
[6] (World Bank, 2002).
[7] A paper by Zubair Khan for the united Nations Development project(UNDP) titled, ‘Impact of post-ATC Environment on Pakistan’s Textile Trade’ in November 2003 [8] Zubair khan, UNDP Paper.
[9] Data source for charts: IFPRI
[10] Data source: IFPRI,2001
[11] source for the table and chart given: NBP Economic Bulletin [12] Economic Survey 2005-2006
[13] More specifically, the exporter needs to purchase the right to use the quota. In many cases, and particularly in Pakistan, the purchase of a quota has given the right to use the quota in more than one year. [14] ‘Textile and Clothing Policy Note: Implications for Pakistan of Abolishing Textile and Clothing Export Quotasy z
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[16] See literature review and references.
