![handle is hein.tera/crser0162 and id is 1 raw text is: Order Code RS20436
Updated September 9, 2002
CRS Report for Congress
Received through the CRS Web
Textile and Apparel Trade Issues
Bernard A. Gelb
Specialist in Industry Economics
Resources, Science, and Industry Division
Summary
Because of their importance to the U.S. economy and to many U.S. trade partners,
textiles and apparel have been major issues in trade relations with a number of countries
and regions. In attempts to resolve conflicts between the interests of exporters and
importers, a number of agreements (multilateral and bilateral) have been signed over the
years generally restricting, the quantities of textiles and apparel traded. Developing
countries, whose exports have been limited, believe that developed countries have
unfairly delayed import liberalization, and continue to press for accelerated
implementation of the phase-out of quotas. Congress eased trade terms on textiles and
apparel from Andean, Caribbean, and sub-Saharan nations in its latest move to boost
economic growth in poorer regions. This report will be updated as events warrant.'
The Economics of Textile and Apparel Production and Trade
Textile and apparel manufacture, and international trade in those products, have been
important elements of economic activity and growth since the Industrial Revolution.
Major reasons are (1) textiles and apparel are basic items of consumption in all countries,
and (2) textile and apparel manufacture - particularly apparel - is labor-intensive,
requiring relatively little fixed capital for entrepreneurs to establish production facilities.
Thus, these industries are major generators of employment. Modest capital requirements
contributed to textiles and apparel being among the major industries at the start of the
Industrial Revolution and being important to developing countries now. The share of total
manufacturing value added accounted for by textile and apparel production among
developing countries was triple that for industrialized countries in 2000.2
Lower wage rates in developing countries together with the labor-intensiveness of
textile and apparel manufacture tend to give developing countries a comparative advan-
CRS analyses and references to CRS reports on a wide variety of trade issues can be found in
CRS's electronic briefing book on trade [http://www.congress.gov/brbk/html/ebtral.html.]
2 United Nations, Industrial Development Organization. International Yearbook of Industrial
Statistics 2002. Vienna: 2002. p. 55.
Congressional Research Service **** The Library of Congress](ViewImageLocal?handle=hein.tera/crser0162&div=1&collection=&method=preview&ext=.png&size=3)
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