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Introduction
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Rationale
This dissertation will investigate the revised WTO Quota System and its impact on the EU
textile trade with particular reference to the import of Jeans from China.
Setting out the foundations of the WTO the dissertation charts China’s accession to the WTO
up to the point of dispensation of trade quotas between WTO countries on 1stJanuary 2005.
From 1948, international trade between states had been strictly regulated firstly through a
multilateral legal agreement and latterly through a quota system administered by the WTO.
Regulation sought to level the playing field of international commerce by restricting the export
strengths of more economically liberalized states in favour of lesser ones. However, regarding
clothing, regulisation adversely impacted on these lesser economically liberalized states by
imposing export quotas on them. It is such imbalances that the WTO sought to address by the
gradual removal of quotas to the point of unfettered access. The EU’s perspective is that for
textiles, this milestone was passed on 1stJanuary 2005. Due to
the export of Jeans accounts for [INSERT FIGURE]% of China’s exports worldwide
the EU being the [INSERT FIGUREINSERT FIGURE] largest recipient of these exports
EU imports of such jeans from China amounting to [INSERT FIGURE]% of total EU imports of
jeans
China being on the ascendant and less isolationist economically
the EU has firstly arrived at its perspective regarding unfettered access but also views China’s
penetration as threat
makes this a significant matter for consideration by the apparel manufacture and retail
sector.
China’s potential effect on this economy can be quite informative of strategic management
objectives and long-term strategy.
Whilst, the initial research underlying this dissertation suggest a temporary curb to China’s
invasiveness, with its sustained and almost daily march uniformly across several sectors
in other economies, it is prudent to expect in the near future a Chinese resurgence in
Europe within this field. With a large capital reserves, access to textile raw materials from
home and abroad, larger work-force and cheaper manufacturing base China’s dominance
of this global sector is a very real possibility. A fashion professional’s survival in such a
‘What If?’ scenario is largely dependant on their ability to envisage and plan for it.
Plans for such forward laying possibilities, as well as for more immediate actualities, are
some of the options that are introduced and developed in the dissertation.
The potential challenges to researching and writing up this topic do include the wide scope
of subject matter that it could cover. Limiting its remit and keeping its thrust pertinent to the
overall study topic presents as an obvious, sensible, difficult but ultimately achievable aim.
Sourcing primary sources of data for this topic is also likely to be problematic, although
secondary sources do not present such an issue.
The aim of this dissertation is to set out what, if any, impact the liberalization of the WTO
Quota System has had on the EU-China Jeans trade
Succinctly state that impact and its actual, possible or probable effects
Place its significance for short-, medium- and long-term strategic fashion management
planning in context
Indicate which groups within the fashion supply chain are most likely to gain or loose from this
impact and demonstrate why
Set out base and advanced contingency strategies that these groups might best be advised to
adopt to counter this impact
Where no significant impact is apparent in respect of any particular group or set of groups,
such identification itself still has strategic management planning value. This value arises from
the fact that once ruled out, any requirement to consider such eventualities by these groups is
dispensed with due to their exclusion by the relevant study.