2.12. The "Conventional" Sector and International Trade Agreements

• Historically, the size of the sector and the dependence of clothing production on cheap labour, has led to China's prominence and domination.

• However, the sector has also been the subject of intense political interest. It has been significantly shaped by "International Trading Agreements".

From 1974 2005, the skills and infrastructure of Chinese manufacturing developed alongside the advantages of low costs of labour and effluent disposal. During this period, developed economies responded with a series of "quotas and tariffs" imposed (especially on Chinese imports) to protect their own manufacturing interests.

Jan 1^st 2005

• These quotas were officially ended on 01.01.05. In the period before the final phasing out (from 19802000) average tariffs fell from 10% to 5% in developed economies and 25% to 13% in the developing countries. But trading rules remain complicated and change rapidly.

• Regional trade blocs and preferential trade agreements maintain various distortions to a completely "Free Trade". But the ending of the main set of quotas has certainly led to a rapid rise in Chinese exportsand a resulting fall in high street prices (certainly in Europe).

• China's joining the WTO continues to afford some protection to those threatened by Chinese growth until 2008.

2.13 Key Issues for Progress of a Developing Textile Economy

• Integration in the "Conventional Sector".

• "Niche Production".

• The "Conventional Sector" and Consumer Prices.

• "Marginalised" Strategies. The Conventional Sector and Second Hand Clothing.

• The Conventional Sector by Fibre Type.

• Organic Textiles (e.g. Organic Cotton).