What did the West do during the Recent Bra-War?
January 1, 2005 the global textile quota regime ended. Demise of this system is expected to permit the low cost countries to export textiles to the best of their ability and price. Chinese were waiting in the wings to take advantage of this situation. In the past five years they had invested a portion of the FDI to this affect. As the new-year dawned the Chinese factories were going full speed ahead to dump as much in the West as possible. The West had fully understood the Chinese game plan and prepared well. As much as $70 million worth of Chinese textiles were held up at the EU ports and warehouses, pending full discussion with the Chinese. Media called it by its acronym – Bra War. By June this year, the Chinese relented and a settlement was reached. It limited the growth of Chinese imports to 10% of the previous year until 2008. After that the agreement will be re-negotiated. Had the EU not done what it did, the Chinese textiles would have overwhelmed the EU producers. This would ha
