An assessment of international strategic merchandising from China, post–quota elimination in January 2005 for the UK apparel market

Abstract

On January 1, 2005, the Multi-Fibre Arrangement, which established quotas on different categories of apparel and textile imports to the European Union, was phased out.This article synthesizes the determinants of trade patterns in the absence of quotas and reviews their impact for the UK apparel retailermarket. It assesses international strategic merchandising from China, post-quota elimination for the UK apparel market with particular reference to global adjustment to apparel supply. However, to sustain their domination of global fashion textile supply, particularly to EU markets, China will need to face the challenges of anti-dumping, technical regulations or standards, preferential trade agreements, regional free trade zones and other non-tariff trading barriers. The article concludes that China is well placed to exploit her position of dominance but suggests that sub-optimal considerations of cost versus response time to the EUretailer will provide a challenge for the future supply of fashion retail products.

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