Anticipating the Future Use of Safeguards by the EU and the US on China’s Textiles & Clothing Exports

Abstract

Textiles and clothing (T&C) trade after lapse of quotas in 2005 has revealed China’s overwhelming comparative advantage in the manufacture and export of T&C products. China’s advantage in this sector attracted the use of trade remedies by WTO members under WTO laws, often in a manner contrary to WTO norms. China has also been subjected to origin-specific safeguard regimes. The EU and the US have been leading users of safeguards against China’s T&C exports. The use of safeguards by the EU and the US raises a number of questions that impact on the future use of trade remedies by other countries. The use of safeguards also poses challenges for the multilateral trading system. This paper analyses the use of safeguards against China’s T&C exports with a view to anticipating the future use of safeguards in the quota-free trading environment for T&C.

Keywords

quotas / safeguards / China / trade remedies / textiles / clothing

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2014 Higher Education Press and Thomson Reuters