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Challenges to the Arab World

Systemic Challenges Quota free World Preference Erosion Constrained Policy Space A Changing Business Environment Global Slowdown Policy-induced Changes. Challenges to the Arab World. International Developments in the Textile and Clothing Industries: Challenges for Arab Countries.

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Challenges to the Arab World

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  1. Systemic Challenges Quota free World Preference Erosion Constrained Policy Space A Changing Business Environment Global Slowdown Policy-induced Changes Challenges to the Arab World International Developments in the Textile and Clothing Industries: Challenges for Arab Countries Speakers: Dr. Luis Abugattas Dr. Ahmed Moustafa United Nations Development Programme Regional Bureau for Arab States Arab Trade and Development Programme (ATDP) ATDP The Arab Textile Industries Forum

  2. Systemic Challenges: Quota free World Preference Erosion Constrained Policy Space A Changing Business Environment Global Slowdown Policy-induced Changes Challenges to the Arab World ATDP The Arab Textile Industries Forum

  3. The end of the Multi-Fibre Agreement (MFA) in 1995: WTO Agreement on Textiles and Clothing (ATC) All products integrated into GATT according to schedule, 10 year transition process Most quotas remained in place till the end of the ATC, further quotas against products of the most successful exporting countries (China) A Quota Free World ATDP The Arab Textile Industries Forum

  4. Quotas introduced heavy distortions to Textile Trade: on January 1, 2009, all quotas have been abolished Consequences: Sharp decline in prices Adverse affects on many exporting countries, including in the Arab World Concentration of production in less countries China gain extended market shares A Quota Free World ATDP The Arab Textile Industries Forum

  5. A Quota Free World • Table: EU imports from China in % ATDP The Arab Textile Industries Forum

  6. A Quota Free World • Table: US imports from China in % ATDP The Arab Textile Industries Forum

  7. No reduction in tariff protection: in the US up to 32% and up to 12% in the EU. Non-reciprocal preferential schemes and ever-growing number of bilateral Free Trade Agreements diminish the value of preferences. WTO negotiations will decrease MFN in the US and the EU Preference Erosion ATDP The Arab Textile Industries Forum

  8. Up to 70% of Textile Exporting Firms benefit from Export Processing Zones (EPZs) or similar institutions Agreement on Subsidies and Countervailing Measures (ASCM) prohibits export subsidies, abolishment at the latest 2015 The need to revise current policies and consider open and hidden Export Subsidies Constrained Policy Space ATDP The Arab Textile Industries Forum

  9. Trends: Concentration of the clothing retailing industry in the EU and the USA Long term arrangements between producers and buyers More sophisticated information technologies and logistics: a key competitive aspect Private Codes of Conduct A Changing Business Environment ATDP The Arab Textile Industries Forum

  10. Global Slowdown World Economy heads towards recession Uncertainty about future demand Table: Percentage Change of US Imports of textile and clothing ATDP The Arab Textile Industries Forum

  11. Figure: Actual and projected GDP growth rates for the US Global Slowdown ATDP The Arab Textile Industries Forum

  12. Trade Liberalization in Arab countries ends decades of market protection and, therefore, requires adequate flanking policies Imports surged in recent years due to trade liberalization WTO negotiation deepens trade liberalization Policy-induced changes ATDP The Arab Textile Industries Forum

  13. Table: Shares of leading Arab textile exporters in extra-EU imports of textiles Arab textile exports to the EU ATDP The Arab Textile Industries Forum

  14. Table: Shares of leading Arab clothing exporters in extra-EU imports of clothing Arab clothing exports to the EU ATDP The Arab Textile Industries Forum

  15. Arab textile and clothing exports to the US Table: Arab exports to the US in % ATDP The Arab Textile Industries Forum

  16. Dismantling of quote system, preference erosion, global slowdown and new dynamics of international trade pose great threats to textile and clothing industry in Arab countries New trading environment offers also interesting possibilities for further development Devised strategies and implemented policies are necessary to confront the systemic changes Appropriate flanking measures are inevitable Concluding remarks ATDP The Arab Textile Industries Forum

  17. Thank you for your attention! ATDP The Arab Textile Industries Forum

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