countries to protect their domestic textile industry through
quotas. This was a major departure from the normal GATT/WTO rules.
Next January will mark the 10th anniversary to end the quota system;
and
5. Second, the accessions to the WTO by China in 2001 and Viet Nam in
2005 have allowed both China and Viet Nam to benefit from the
phasing-out of the MFA quota system and enlarge their share in the
global textile and clothing market.
6. Based on these two developments, the world trading system became
more open to trade in textiles and clothing which made it possible to
have the third major development - which is the significant
transformation of the world textile industry through increased
outsourcing, and the proliferation of global value chains and global
production networks.
7. These three major developments have had a substantial impact on the
pattern of world trade, the distribution of market shares, as well as the
global value chains in the textiles and clothing sector, including the
adjustment to new emerging powers in the field of manufacturing and
export.