. /.   WORLD TRADE  
ORGANIZATION  G/C/W/549 
28 April 2006 
 
 (06-2043) 
Council for Trade in Goods Original:   English 
  
ISSUES RELATED TO THE TEXTILES AND CLOTHING SECTOR 
 
Communication from Turkey
 
  The following communication, dated 28 April 2006,  is being circulated at the request of the 
delegation of Turkey. 
 
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I. INTRODUCTION 
1. For many countries, the textile and clothing sector constitutes one of the first stages of 
industrial development. Particularly through clothing industry developing countries have been able to 
significantly increase and diversify exports with pos itive effects on income, employment, and poverty.  
 2. Developing countries now account for half of wo rld textiles exports and almost three quarters 
of world clothing exports. Many least develope d and developing countries depend on these sectors 
which, in certain cases, account for more than 80 pe rcent of total exports and more than 50 percent of 
total employment.  
 3. For more than three decad es, the textiles and clothing industry had been subject to 
differentiated treatment, receiving comprehensive and persistent protection th an any other industrial 
sector. While the quota system aimed at providing a temporary relief to major importers and thus 
quota-imposing countries in the sector, throughout this period developing and least developed 
countries, with the help of a guaranteed market shar e, have been able to use the system to develop 
their textiles and clothing exports.  4. Termination of the ATC agreement has unfortuna tely failed to reach its basic aim of leveling 
the playing field for all, as after the expiration of quotas, many developing countries have witnessed 
their market shares dwindle at unprecedented rates, resulting in closure or contraction of many firms 
and paving the way for increased unemployment in the sector. Thus, the distribution of the benefits of 
trade liberalization in these industries had so far been uneven.  5. A recent analysis of the World Bank states that  “ … certain countries have seen large declines 
in the value of their exports of textiles and clot hing products, declines that may entail substantial 
adjustments.”1 The analysis also puts forward th e fact that in the absence of other employment 
opportunities, workers made redundant from the te xtiles and clothing sectors may fall back in 
poverty.2 In this context, minimizing costs incu rred by released workers and their families and 
facilitating their adjustment into alternative employ ment will be a major challenge for many countries.  
 
                                                     
 
1 The World Bank (Washington, D.C., 2005); Trade, Doha and Development: A Window into the 
Issues; Life After Quotas? Early Signs of the New Era in Trade of Textiles and Clothing 
(P. Brenton & M. Hoppe); p. 158. 
2 Ibid. G/C/W/549 
Page 2  
 
  II. WHAT SHOULD BE DONE? 
1.      Coping with these challenges by the efforts of a single – and developing - country is not possible 
in today’s world characterized by complex inte rdependence. Achieving sustainable textiles and 
clothing trade necessitates comprehensive multilatera l approach by the participation of relevant 
international organizations.  
 
2.      International organizati ons should support developing countri es in adjusting to the substantial 
deterioration in trading circumstances that arise from the expiration of quotas on textiles and clothing. Among them, of course, the World Trade Organizatio n has the major responsibility as the centerpiece 
of world trade. In this context, it is worth explor ing what response can be found within the context of 
the multilateral trading system through a work pr ogram established within the Council for Trade in 
Goods (CTG).   3.        The method to be followed while coping with the challenges should not lead to a roll-back of the market openings achieved so far or stifling th e potential gains from increased international trade 
and investment. 
 
III.       THE WORK PROGRAM  
A. OBJECTIVES
 AND  STAKEHOLDERS 
1.       The main objective of the work program is to foster a broader understanding of the unique 
needs of the textiles and clothing sector; provide  guidance for national and multilateral policies and 
measures to deal with related issues; and in this context, grant technical advice, practical assistance 
and support to developing countries; elaborate and implement integrated strategies from global to 
local level to adjust to new global realities.  
 
2.     The stakeholders are all the member states whose textiles and clothing sectors will benefit from 
the program,  B. SCOPE
 OF THE  WORK  PROGRAM 
3.         Moving from the point that the Doha Round is marked by the ideal of development and based 
on the Preamble of the Marrakech Agreement fore seeing “the need for positive efforts designed to 
ensure that developing countries, and especially the least-developed among them, secure a share in the 
growth in international trade commensurate with the needs of their economic development”, Turkey 
presents the terms of reference of the work program provided hereinafter :  
“Fully respecting the basic principles and rules of the WTO and rights and obligations of the 
Members, the CTG will establish a work program that will review the global textiles and 
clothing production, trade and market circumstan ces after the termination of the ATC; look 
into options for developing countries to im prove their competitiveness in the textiles and 
clothing sector; scrutinize the adjustment-rel ated issues and make recommendations on 
measures in order to assist developing count ries experiencing challenges; examine ways to 
develop collaborative efforts with the relevant international organizations, including the 
World Bank, International Monetary Fund in order to effectively direct resources under 
existing programs toward diversification of economies relying heav ily on the textiles and 
clothing sector.” 
 
4.          Each WTO member state is expected to participate in efforts to establish the details of the 
above-mentioned work program in a cooperative manner. 
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