Agreement On Textiles And Clothing India
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08 Apr Agreement On Textiles And Clothing India

India and the United States are two major players in the agreement, the United States as importers and India as textile exporters. It is interesting to note that most of India`s GDP is related to the textile industry, but there are also extremely high trade barriers in most industries. The United States is, of course, next to the EU, a country where the removal of barriers could potentially benefit the major textile-producing countries. Finally, I would like to say that India has a large surplus in clothing exports. In recent times, however, concerns have been expressed regarding: (a) the benefits of other exporting countries that have trade agreements with key markets; (b) India`s inability to increase exports as a result of tariff reductions through bilateral trade agreements with countries such as Japan; (c) likely increase in imports, without an increase in exports, if tariffs are reduced under trade agreements such as the RCEP. To address this problem, India could also examine the costs and benefits of negotiating trade agreements with its major export markets, such as the United States and the EU. Further studies are needed to examine how India can use its trade agreements to increase market access for domestic firms in major export destinations. Given that tariffs may no longer be an instrument to protect domestic industry, it is also important to examine the problems of the clothing industry in India and design policy in order to improve its competitiveness and efficiency. To improve competitiveness and help industry integrate into global value chains after the signing of trade agreements such as the RCEP, the government could focus on strategies and incentives that help businesses grow and increase operating volume, develop skills, support technological adaptation, reduce logistics and input costs, and improve business friendliness. The apparel industry should be encouraged by appropriate strategies and support mechanisms to invest in technology and research and development (R-D), to improve quality standards and to move to high-quality integrated manufacturing and production processes. Under atT`s integration plan, the United States should have significantly increased its textile and clothing quotas.

Two questions are implicitly asked by my research. First, in the absence of trade barriers, do economies tend to specialize in the areas of comparative advantage? Second, do trade agreements have a real impact on market opening? With the answers to the questions to be discovered above, the quantifiable objective of my research is to find out if there is a link between the implementation of ATC over time and the amount of Indian textile exports to the United States. The absence of a correlation would indicate either a failure of the REPORTED objectives of the ATC or a contradiction of comparative business theory. T-shirts and singlets, India`s largest clothing exports, account for about 16% of total clothing exports from India.