Turkish textile and clothing industry in the post-quota era and some policy options

Textile and clothing (T&C) industry has experienced important developments since 1994. The most important is that Agreement on Textiles and Clothing (ATC) signed (1994) under supervision of World Trade Organization. The system governing T&C trade for more than 40 years has expired by means of stipulating a gradual quota reduction during the period 1995–2005. Though signing of ATC does not mean a complete elimination of protection, it may lead to shifts in market shares, trade and investment flows. It is expected that the equilibriums will change in favour of some countries as well as in disfavour of others. The period created serious problems for Turkish T&C industry. This paper attempts to analyse the impact of ATC on Turkish T&C industry.