The World Trade Organization (WTO) has published a discussion paper that studies the likely impact of the final phase of quota removal under the Agreement on Textiles and Clothing (ATC). The ATC was agreed upon by WTO-member countries in 1994 as part of the General Agreement on Tariffs and Trade, and provides for complete quota removal, January 1, 2005.

Issues considered include:

  • availability of entry-level jobs for unskilled labour in both developed and developing countries
  • development of technology in poor countries
  • rules of origin and tariff treatment related to vertical cross-border supply chains

A conclusion of the WTO in this paper is that China and India’s surge in market share may be less than anticipated due to factors such as proximity to major markets and technological advances in developing countries.

A copy of this discussion paper is available from the WTO website at: