The textile and apparel boom in world markets from low-cost countries in 2005 is due mainly to the phase out of the old global quota system, confirms a World Bank report entitled 'Prospects for the Global Economy'.
China's rocketing exports in textiles and apparel have grown by 50.49 per cent in the first half of 2005.
Despite lower private consumption and investment, Chinese economic growth remained strong due to rapidly growing exports and lower import growth.
Fuelled by its booming textile and apparel exports, the report however confirms the re-imposition of limits in the US and the European Union (EU) "will have attenuated this positive force."
Exports were artificially held back under quotas but with the barrier coming down in 2005, "there were significant changes in the pattern of trade," the report says.
Even though the removal of quotas was completed in stages with ten years of adjustment time, many lasted right up until the end of 2004 causing a veritable textile 'big bang'.
Although China is the runaway leader in terms of pure volume of apparel and textile exported, other low cost countries have also benefited.
In percentage terms of these countries' total merchandise exports, Bangladesh, Cambodia, Jordan, India, Pakistan, Sri Lanka and Turkey gained the most following the end of world quotas.
Bangladesh's share of exports to the US and EU occupied by textile and apparel produce increased by 14.1 per cent.
The figure was slightly lower for Cambodia and Sri Lanka at 13.9 and 12.1 per cent respectively.
Although China has undoubtedly caused the biggest disruption in US and EU markets in 2005, textiles and apparel represent only a small part of its national output as a whole.
At twelfth place, it ranked alongside Bulgaria and Morocco with a 2.4 per cent increase of apparel and textile in the total share of merchandise shipped during the first half of 2005.
