Global Apparel Sourcing for US----The post January 01, 2005 scenario.

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cts each and every member of the society in one way or the other.

Before I proceed an important clarification is deemed necessary with regard to the connotations of apparel and textile industry being used in this paper.
Throughout this paper:
1. Textile industry will mean a collection of sub-industries that creates raw material for the apparel or sewing industry. It includes ginning, spinning, weaving, knitting, dyeing, printing, finishing etc.
2. Apparel industry will signify an industry, that conceives, designs, engineers, cuts, sews decorates and packs raw material provided by the textile industry which primarily is fabric.
3. Focus is laid on low to medium end apparel that has the highest consumption in the country. In other words this paper is more relevant to brands like Faded glory, Xhilirations, and Route 66 owned by Wal*Mart, Target and K-mart respectively then Armani, Dolce & Gabbana and Cerrutti.


WHY JANUARY 01, 2005 IS A SIGNIFICANT DATE ?

Why January 01, 2005 has been stressed as an important cut off date in this paper?. The textile and apparel trade are currently governed by imposition of selective quantitative restraints---volume quota, tariffs, duties etc---by majored importing countries like US, Canada, EU and Japan. International apparel and textile trade is going through fundamental change under the 10-year transitional programme beginning


January 01, 1995 and set out in the WTO (World Trade Organization’s) Agreement on Textiles and Clothing (ATC). Before the agreement took effect, quotas controlled a large portion of trade in the sector. Under the agreement, WTO members have committed themselves to remove the quotas and to integrate the sector fully into GATT (General Agreement on Tariffs and Trade) rules by January 01, 2005. That would also mean observing the GATT princple of non-discrimination... Thus period after this date will result in various bilateral trade issues that will alter...