The dismantling of the Multi-Fibre Arrangement by 2005 and China's forthcoming membership of the WTO, as the world's largest exporter of clothing, will alter profoundly international competition in textiles and clothing. A simulation of these two components of trade liberalisation makes it possible to identify the broad scale of the shocks which are likely to affect production and world trade. The results show how Asian competition could well bring into question the regionalisation of trade, which has emerged around the United States and the European Union, favouring a system of differentiated protection protection.
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Article provided by CEPII research center in its journal La Lettre du CEPII.
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