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The Cost of EU Trade Protection in Textiles and Clothing

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  • Spinanger, Dean
  • Francois, Joseph F.
  • Glismann, Hans H.

Abstract

This paper estimates the costs of EU restraints on trade in textiles and clothing. After explaining the methods used, we examine the impact of an opening up of EU trade in textiles and clothing, inter alia to those economies where the textile and clothing (T&C) industries command sizeable shares of exports and output. The estimates are based, firstly, on a partial equilibrium analysis allowing us to directly cover the effects of liberalization on the importation, production and consumption of T&C products; secondly, a general equilibrium analysis incorporates the wide-sweeping indirect costs of ATC within the EU. It turns out that in 1997 EU consumers paid roughly ECU 25 billion more for T&C products, due to quotas, tariffs and indirect effects.

Suggested Citation

  • Spinanger, Dean & Francois, Joseph F. & Glismann, Hans H., 2000. "The Cost of EU Trade Protection in Textiles and Clothing," Kiel Working Papers 997, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:997
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    References listed on IDEAS

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    Cited by:

    1. Joseph Francois & Julia Woerz, 0000. "Rags in the High Rent District: the Evolution of Quota Rents in Textiles and Clothing," Tinbergen Institute Discussion Papers 06-007/2, Tinbergen Institute.
    2. Francois, Joseph & Woerz, Julia, 2009. "Non-linear panel estimation of import quotas: The evolution of quota premiums under the ATC," Journal of International Economics, Elsevier, vol. 78(2), pages 181-191, July.
    3. Andriamananjara, Soamiely & Dean, Judith M. & Feinberg, Robert & Ferrantino, Michael J. & Ludema, Rodney & Tsigas, Marinos, 2004. "The Effects of Non-Tariff Measures on Prices, Trade, and Welfare: CGE Implementation of Policy-Based Price Comparisons," Conference papers 331219, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Dadakas, Dimitrios & Katranidis, Stelios D., 2006. "MFA Quotas Elimination: the Case of Cotton Yarn in Greece - a Multi-Market vs. a Single Market Analysis," 2006 Annual meeting, July 23-26, Long Beach, CA 21390, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. repec:ilo:ilowps:374452 is not listed on IDEAS
    6. Ms. Sonali Jain-Chandra & Mr. Ananthakrishnan Prasad, 2005. "The Impact on India of Trade Liberalization in the Textiles and Clothing Sector," IMF Working Papers 2005/214, International Monetary Fund.
    7. Tanveer Ahmad Khan & Indrani Chakraborty, 2022. "Dynamic Interactions Between Structure and Performance in the Textile and Clothing Industry in India: An Econometric Approach," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 20(1), pages 173-209, March.
    8. Meil, Pamela & Trommel, Willem & Bannink, Duco & Hoogenboom, Marcel & Moniz, Antonio & Woll, Tobias & Makó, Czaba & Csizmadia, Péter & Illessy, Miklós & Balkmar, Dag & Linardos, Petros, 2006. "Comparative report - WORKS WP5 Policy pillar," EconStor Research Reports 67056, ZBW - Leibniz Information Centre for Economics.
    9. Lahiri, Sajal & Vlad, Valerica, 2004. "Foreign Investment and Environment in a North-South Model with Cross-border Pollution," Conference papers 331272, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Mausumi Kar, 2012. "National and Global Aspects of India’s Textiles and Apparel Industry and Trade: An Overview," South Asian Journal of Macroeconomics and Public Finance, , vol. 1(1), pages 81-133, June.
    11. Dimitrios Dadakas & Stelios D. Katranidis, 2010. "The Effects of Trade Liberalization in Textiles and Clothing on the Greek Market for Cotton Yarn: A Multi‐Market Analysis," Review of International Economics, Wiley Blackwell, vol. 18(1), pages 138-152, February.
    12. Dean Judith M & Signoret José E & Feinberg Robert M. & Ludema Rodney D. & Ferrantino Michael J, 2009. "Estimating the Price Effects of Non-Tariff Barriers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-41, March.
    13. Dimitrios Dadakas & Stelios D Katranidis, 2009. "Trade Liberalization in T&C: An Overview of the Welfare Effects," Discussion Paper Series 2009_15, Department of Economics, University of Macedonia, revised Nov 2009.
    14. Joseph Francois, 2010. "Comment on "China's Experience under the Multifiber Arrangement (MFA) and the Agreement on Textile and Clothing (ATC)"," NBER Chapters, in: China's Growing Role in World Trade, pages 387-395, National Bureau of Economic Research, Inc.
    15. Peter Walkenhorst, 2004. "Liberalising Trade in Textiles and Clothing: A Survey of Quantitative Studies," International Trade 0401007, University Library of Munich, Germany.
    16. Kyvik Nord°as, Hildegunn., 2005. "Labour implications of the textiles and clothing quota phase-out," ILO Working Papers 993744523402676, International Labour Organization.

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    More about this item

    Keywords

    Agreement on Textiles and Clothing - ATC; Multi-fiber Arrangement; Costs of Protection; EU trade policy;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment

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