Apparel Trade: The Challenge Facing Developing Economies and Mauritius

Abstract

International apparel trade has been one of the most contentious trade issues over the last fifty years,  particularly between the developed and developing countries (Cline, 1990). The developed countries have in fact imposed restrictions on imports of apparel products from the developing countries since the 1950s  and it is only in 2005, after the complete phasing out of the Multi-Fibre Agreement (MFA), that the quantitative restrictions will be removed (GATT, 1994). The post MFA era is thus expected to allow for free competition between countries for market access. It is argued that countries having a competitive advantage in terms of cost, product quality, manufacturing flexibility, supply chain management and responsiveness to market requirements (Brown, 1996) will occupy the biggest share of the market. This is a major challenge to the developing economies which will have to review their manufacturing approach in light of the new market conditions, for sustained competitiveness; failing to do so will imply losing the market share which is likely to be a severe blow to many of these economies. This paper reviews the mechanisms for international apparel trade and the challenges facing developing economies like Mauritius in the context of international apparel trade liberalisation.

Keywords: International Apparel Trade, Developing Countries, Globalisation and
Competitiveness.