Font Size: a A A

A Study Of Technical Barriers To Trade Of China's Textile And Clothing Industry

Posted on:2006-12-15Degree:MasterType:Thesis
Country:ChinaCandidate:R HanFull Text:PDF
GTID:2166360155954050Subject:International Trade
Abstract/Summary:PDF Full Text Request
With the elimination of the quota on global textile and production, the world textile and clothing industry has entered a "post-quota"era. The trade barriers such as tariff and quota have been troubled China's textile and clothing industry for years. During the period from China's entry to the World Trade Organization to the "post-quota"era, such barriers have been gradually eliminated, which creates an advantageous external environment for the export of China's textile and clothing products. However, at the same time, the conception that "China's textile and clothing industry will take away more and more people's bowls"is gaining more and more supports due to some interest groups'maneuver. This contributes to the situation that import countries and competitors form an alliance to suppress China's textile and clothing industry. One of the major tactics the alliance uses is to limit China's export of textile and clothing products. According to the statistics, Technical Barriers to Trade (TBT) has contributed to a direct loss of 1.17 billion and 1 billion respectively in the year of 2002 and 2003 in China's textile and clothing industry. TBT refers to the mandatory or non-mandatory technical regulations or laws that a government or non-government organizations impose(s) to maintain national security, protect human beings, animals and plants, and natural environment, prevent cheating, and guarantee the safety of food and quality of products. These regulations and laws subjectively or objectively become the barriers for the foreign merchandise to be imported freely. Because TBT has the attributes of flexibility, complexity, solidity and etc., it has become the most common trade barrier in the world that is hardest to deal with. First, this essay studies TBT on the basis of the Trade Protection Theory. TBT has transformed the Old Trade Theory, which only considers single comparative advantages, to the New Trade Theory, which takes a full consideration of economic, environmental, and social benefits. The New Trade Theory maintains that international trade should take into consideration of environmental protection, reduce or eliminate the activities of production and sales that pollute environment and destroy natural resources, encourage the production and sale of environment-friendly products. The theory also thinks that we should implement the free trade on the condition that considering the international continuous development, and firmly object to making new trade protectionism with name of environmental protection at the same time. TBT is enforced through the mechanism that controls the price and quantity of imported products. Using the tools of Supply and Demand Curve, Indifference Curve, Offer Curve, Equal Value Curve and etc., this essay analyzes the quantity-limiting effects of TBT, the trade terms regulating importing countries, the effects of social welfare, and economic effects of China's industrial protection. Second, this essay analyzes the status of the development of China's textile and clothing industry. The proportion of common exporting in China's textile and clothing industry is still increasing; the target exporting market is still mainly composed of Hong Kong, Japan, European countries, the United States, and Russia, though the quota is decreasing; the exporting provinces are mainly coastal area in Northern China. The proportion of export by non-state-owned corporations is gradually increasing and the concentration degree of textile and clothing industry is rapidly growing. With the advent of "post-quota"era in the global textile and clothing industry, the TBT which is designed for importing countries has created the greatest barrier for China's export of textile and clothing products, though China is commonly regarded as the biggest winner. Judging from the current situation, TBT's requirements for the textile and clothing industry are mainly concentrated on the safety, environmental protection, and tagging. Among over ten sets of"green"ecological textile standard, the most commonly used, the most authoritative, and the most rigorous one is "Oeko-Tex Standard 100"which guarantees that the passing products will not have excessive harmful material to human's health. On the one hand, TBT brings barriers to the exporting of textile and clothing products and reduces enterprises'competitiveness, which will make China's textile and clothing industry face great risk in the international market. Since the industry of textile and clothing is China's pillar industry, its success and failure will cause the chain effects for many other related industries. If something goes wrong with this industry, the negative impact on other industries will be numerous. However, on the other hand, TBT will promote the formulation and enforcement of the laws and regulations of environmental protection, and expedite the upgrade of technology and products. It will also stimulate the launch of international standard evaluation system, and make the concept of "quality"more tied to the harmony of environment, ecology, and economics. Therefore, TBT can be both obstruction and impetus. The key is that we must face its impacts on China's textile and clothing industry and change our old conceptions as soon as possible. We need to deal with the international market in an internationalized way of thinking, and promptly and scientifically take appropriate actions to respond. To achieve this goal, both the government and the enterprises need to make their effort. Therefore, this essay proposes the responding strategies for the government and the enterprises. This essay proposes that the government needs to further create good service environment, direct the development of textile and clothing industry to a greater extent, support environment-friendly textile enterprises, and encourage them to take the path of continuous development. The government also needs to strengthen the laws and regulations and monitor the enforcement by the enterprises. It is also responsible for establishing TBT's early warning system and...
Keywords/Search Tags:Technical
PDF Full Text Request
Related items