This paper examines the textile and clothing (T&C) industry in Lesotho to ascertain the initial effects of the end of quotas and other restrictions
on global trade in textile and clothing. Results show a dramatic decline in Lesotho’s T&C exports, both in value terms and export share in major
markets in industrialised countries: the U.S. and the EU in the aftermath of the Agreement on Textile and Clothing (ATC). The export decline for
Lesotho and for Sub-Saharan African countries as a group has not been accompanied by simultaneous or rapid shift of increasing T&C exports by
Asian developing countries, who continue to export post-ATC at about the same levels of textile and clothing that they did before ATC phase out.
JEL Classification: F13, D14, D53, N27.
Key words: Agreement on Textile and Clothing (ATC), Multifibre arrangement, global textile and clothing exports, quota restrictions, trade
remedies, Sub-Saharan Africa, Lesotho
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