A United Nations study has concluded that garment and textile exporters will have to diversify in order to survive in the quota free scenario.
The study titled "Sewing Thoughts: How to Realize Human Development Gains in the Post-Quota World," covers countries from Bangladesh, India, Indonesia, Nepal, Pakistan, the Philippines, Sri Lanka, Fiji, Maldives and Mongolia.
Knitted products exports from Philippines to the United States went up about 25 percent in 2005 compensating a two-third drop in exports to the European Union, the United Nations Development Program Regional Center in Sri Lanka data indicates.
Philippine textile and clothing exports rose 5.6 percent to $2.5 billion in 2005, up from $2.4 billion in 2004, with a rise in volume of 0.6 percent to 286.7 million kilograms.
However, 13.8-percent decline in textile products was compensated by export growth in ready-made garments and other textile made-ups, the study reveals.
Asia-Pacifics market share went up in the United States and European Union during the quota free regime, whereas smaller players were on a decline.
