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Textiles and clothing (T&C) sector is of critical importance to developing countries/Least developed countries (LDCs). With the expiration of quotas in 2005, many developing countries/LDCs have experienced considerable adjustment challenges. With the end of quotas and the increase in competitive pressures on countries, use of anti-dumping measures, has become increasingly attractive as a market protection mechanism. This presentation assesses the use of anti-dumping measures in T&C sector through two possible application scenarios i.e. developing-to-developing countries and developed-to-developing countries.
The presentation refers to earlier work done by Chad Bown on the Endogenous Trade Policy theory and would extend Bown’s analysis to the T&C sector. The main objective behind the presentation is to propagate a newer and much-simpler “Reactive and Pre-Emptive Model.” The purpose behind the model is to distinguish between reactive users and pre-emptive users of anti-dumping measures and how these users are likely to employ anti-dumping measures to protect their T&C industries after quota expiration.
The presentation expands upon my recently submitted PhD thesis, supervised by Professors Ross Buckley (UNSW) and Bryan Mercurio (CUHK). The idea is to float the theory before a larger audience with a view to elicit comments. At the moment, only T&C sector has been studied as a possible sector of application. However, this postulation has the potential to be applied to other sectors of world trade through proper law and economic analysis.