What does the end of the quotas mean for the apparel industry?
Quotas were adopted to protect apparel and textile production in the North. The result, however, was the internationalization of the industry. Apparel production was set up in many different countries in Asia, Latin America and Africa that did not have restrictive quota limits on the amount of clothing that could be exported to the North. The end of quotas means a larger amount of apparel and textiles will be produced in the global South, but in fewer countries and fewer factories. Without quotas, countries and companies will be in more direct competition. This increased competition will produce three main effects: 1. Country consolidation: It is cheaper and more efficient for brands and retailers to source from fewer countries. One industry survey found that brands now sourcing clothes from 40-50 countries plan to consolidate production in 12-15 countries. 2. Fewer and larger suppliers: With open competition, suppliers will be pressured by brands and retailers to reduce costs. Multina
