Karen’s Korner
Trade, Textiles, Politics, Observation & More | Information & News

This is the kind of beginning that affects every man, woman and child on our tiny planet. It’s the beginning of a global textile trade with no quotas.

What does that mean? It means that ‘a consumer’ can buy as much as he or she wants from anyone, anywhere. “Consumer” in this case means “large purchaser,” like a corporation or other similar entity.

The possibility is now heightened for emerging textile producers to get trampled in the global marketplace, while those that have become powerhouses might only get stronger, i.e., China & India (two of the biggest standing to gain further ground). Other emerging producers could gain ground simply because of being within geographic proximity to the largest players.

While many committees have been formed and many studies have been conducted, most of the ramifications in their totality, are merely unproven theories or surmisings. For example, some opponents of the “no quota” system have claimed that as many as 30 million+ jobs could be lost, or at the very least redistributed.

In essence, it doesn’t matter in what country or on what continent or even what political system you happen to live – for better or worse – this will affect you.

Here in the United States of America, we could see further “outsourcing” by major corporations to those portions of the world with a mixture of the cheapest labor, highest volume production runs and reasonable quality assurance. Remember when the last wave of textile jobs were lost? This could be worse. Compounding this problem is the eventual WTO ruling on U.S. Cotton Subsidies. If the U.S. is forced to reduce the millions given out to cotton growers – lookout – a major market shift could occur.

Again, we’re not experts, but we “call ‘em as we see ‘em” and this looks a little volatile for many. Do your own reading and decide for yourself. By the way, the “no quota” system began at 12:00:01 A.M., January 1, 2005.

Only time will tell.