The U.S. Textile and Apparel Industry in the Age of Globalization

The contemporary U.S. textile and apparel industry has faced significant challenges as the volume of imported goods entering the domestic market has continually increased. In attempts to both foster development in select world regions and maintain viability of the domestic industry, the U.S. government has negotiated a variety of trade agreements extending preferential treatment, including duty- and quota-free access to the U.S. market for apparel and other textile products manufactured in developing countries in the Caribbean Basin, sub-Saharan Africa, and the Andean region. In addition, provisions included in the agreement granting China, the world's largest producer of textiles and apparel, admission to the World Trade Organization have allowed this country to become an immediate beneficiary of the MFA quota phase-out. This article examines the current state of the domestic textile and apparel industry and provides an overview of trade agreements enacted during the past decade that are of specific interest within the textile and apparel sector. It offers insight into challenges and opportunities for both the domestic textile and apparel industries in an age of rapid globalization as final elimination of the existing quota system in 2005 approaches.